With the Africa Energy Forum taking place from today (7 June), we've put together this short guide on how we support power infrastructure across the continent. You can view a full copy here or read the version below.
Who we are
We invest in power infrastructure to remove major constraints to growth, which allows businesses to become more productive and competitive, leading to expansion and job creation. We do this by making direct and indirect investments, as well as by providing debt and concessional finance.
We have a six-decade heritage as an investor and lender in African power, and have directly or indirectly invested in a third of all utility-scale independent power producers (IPPs) in sub-Saharan Africa (outside of South Africa).Globeleq, Africa’s leading IPP with eight operational plants totalling over 1,200 MW in five countries, has been under our direct control - in a 70 per cent to 30 per cent ownership with Norfund - since late 2015. This year, we formed a partnership with the Aga Khan Fund for Economic Development (AKFED) and its industrial and infrastructure arm, Industrial Promotion Services (IPS). The joint platform has 325 MW of operational capacity and will pursue projects in greater East Africa and West Africa.
On the debt side, we recently provided $83 million to the 200 MW Amandi project in Ghana as co-lead arranger, and provided finance to the 459 MW Azura project in Nigeria.
Beyond electricity generation, we have invested directly and through funds in transmission and distribution companies in Cameroon, Uganda and Cote d’Ivoire, and in a rural utility in the Democratic Republic of the Congo.
Amandi Enegry, Ghana - Debt
In 2016, we co-led the debt financing of Amandi, a 200 MW gas-fired project near Aboadze, southern Ghana.
Amandi will help alleviate Ghana’s power challenges, where insufficient cost-effective supply has resulted in regular outages. The electricity generated by Amandi will increase business productivity and indirectly create employment opportunities for an estimated 68,000 people.
Our $83 million investment was awarded the PFI African Power Deal of the Year, as well as the IJ Global African Power Deal of the Year 2016.
Globeleq, pan-Africa - Equity
In 2015, we took direct control of Globeleq, the leading owner and operator of IPPs on the continent in a partnership with Norfund, Norway’s development finance institution.
It’s estimated that Globeleq’s assets support around 350,000 jobs across the five countries they operate in.Globeleq plans to add significant megawatts of new power generation during the next ten years through pursuing a mix of projects - from renewables to thermal power generation.
Azura Power, Nigeria - Debt
In 2015, we provided debt finance for the development, construction and operation of a 459 MW gas power plant in Edo State, Nigeria.
The project is the first greenfield power plant in Nigeria since the country’s reform of the power sector in 2013.
When completed, Azura will provide much-needed power to a country that has one of the lowest per capita electricity consumption rates in the world.
AKFED/IPS, East and West Africa - Equity
We recently partnered with AKFED and its industrial and infrastructure development arm, IPS, to launch a new joint power platform.
The joint platform houses IPS’s operational power projects in Kenya and Uganda (Tsavo and Bujagali), and will focus on new power projects in greater East and West Africa.
The platform aims to mobilise $1 billion worth of project funding, including in the 147 MW Ruzizi III project in the Great Lakes region of East Africa.
Investment in numbers
13,000 MW - since 1948, we’ve invested in power projects totalling more than 13,000 MW.
4,300 MW - We’ve invested in more than 4,300 MW of power projects in sub-Saharan Africa.
1 in 3 - We’ve invested, directly or indirectly, in more than one in three utility scale power projects across sub-Saharan Africa (excluding South Africa).
56,400 GWh - In 2015, our portfolio of businesses supplied 56,400 gigawatt hours of electricity to customers.
8500 industrial business supplied - In 2016, our power investments generated enough electricity to supply 8,500 typical industrial businesses.
CDC is the UK government-owned development finance institution. CDC’s mission is to support the building of businesses throughout Africa and South Asia, to create jobs and making a lasting difference to people’s lives in some of the world’s poorest places.
We provide investment capital in all its forms, including equity, debt, mezzanine and guarantees, and this capital is typically used to fund growth. This capital is provided directly and through fund managers that are aligned with our aims.
CDC uses its own balance sheet to invest and has net assets of £3.4bn.