Globeleq Limited

Africa Infrastructure

Globeleq is the largest private developer, owner and operator of independent power plants in sub-Saharan Africa. It currently has a generation capacity of more than 1,400 megawatts (MW) in eight locations across six countries.

Our investment

Our investment is to support the development of early-mid stage least cost power generation in Africa to alleviate the critical shortage of reliable electricity and build and maintain operational excellence of producing assets.

Impact
  • Economic opportunities created through the firm growth (SDG 8.5).
  • Improve standards of living for end consumers through the provision of more and better-quality clean energy (SDG 7.1, 7.2).
  • Improve environmental sustainability and contributing to climate action by reducing greenhouse gas emissions (SDG 13A).
How?
  • Direct: Avoid/reduce greenhouse gas emissions through the displacement of thermal power.
  • Economic enabler: Deliver new power capacity, increasing the supply of reliable electricity to firms and households, thereby increasing productivity, and so leading to economic growth and job creation and improving quality of life for end consumers.
Stakeholder Geography Characteristics
Employees

Pan-Africa

Unknown

Consumers

Pan-Africa

Urban/peri-urban households

Planet

Global

N/A

Scale Depth/Duration

All projects combined currently:

  • Have installed capacity of 1,479 MW
  • Are estimated to support over 220,000 power enabling jobs
  • Are expected to meet the equivalent demand of 12.8 million end consumers
  • Employees: The impact on economic opportunities is expected to be deeper in countries where there are higher poverty and unemployment levels.
  • Consumers: Consumers suffering from unreliable grid access and high levels of poverty will benefit from quality of life improvements, but these are expected to be greater for households that consume the most electricity and use appliances.
  • Planet: Estimated to avoid over 693,000 tonnes of annual CO2 emissions across all projects.
Grid Score Contribution

Grid score is determined at the individual project level.

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.

Financial: Long term equity development finance institution capital is required for power development in Africa.

Risk
  • Alignment: Globeleq will no longer pursue further investment in heavy fuel oils and have implemented a nuanced approach to test Paris Ageement alignment for gas to power investments.
  • Execution: Power development is challenging and takes a long time. This risk has to tolerated given its weighting toward the impact case.

Expected impact

In sub-Saharan Africa, 70 per cent of people don't have access to electricity, and 40 per cent of businesses say the lack of reliable power is a major constraint. Developing countries need reliable and affordable electricity to grow businesses, create jobs and improve people’s lives.

It’s estimated that Globeleq’s assets support hundreds of thousands of jobs across the countries where it operates. Our investment enables Globeleq to address the bottleneck in power project development, adding significant megawatts of new power generation over the next ten years.

For example, Globeleq is the parent company of Songas, one of the largest independent power producers in Tanzania. Its 190 MW plant in Dar es Salaam, generates approximately 20 per cent of the country's electricity and employs around 90 people directly.

It also runs a popular trainee programme, providing young Tanzanians with the opportunity to develop engineering skills.

Environmental and social aspects

The company applies good environmental and social practices that minimise any negative impacts its operations may have.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Infrastructure
Website:
https://www.globeleq.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Equity
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
September 2015
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$15.07m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Guernsey

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