The Copperbelt Energy Corporation PLC (CEC) and the Africa Finance Corporation (AFC), headquartered in Lagos, Nigeria, have signed a Memorandum of Understanding (MoU) to enable the parties collaborate on the development, investment and operations of selected power assets in Africa.
The principal objectives of the Parties, through the MoU, are to proactively develop, invest in, and operate selected power assets in Africa; and contribute to the promotion of Africa’s economic and social development through private sector leadership and/or public- private partnerships, while providing an attractive financial return to shareholders.
Projects that will be developed through the new partnership include the $150M Kabompo Gorge Hydro Power Project in North-Western Zambia, the $1B Luapula Hydro Schemes in Luapula Province of Zambia. The agreement will also cover investment in other African countries.
CEC owns and operates an electricity transmission network on the Zambian Copperbelt, supplying power to the mining industry, and is developing a number of new projects in the energy and telecommunications sectors. CEC is a publicly traded company, listed on the Lusaka Stock Exchange.
AFC is a hybrid investment bank and multilateral development financial institution established by treaty amongst Sovereign States. AFC has a paid-in capital in excess of US$1.1bn and has a mandate to invest in infrastructure related projects throughout the continent of Africa.
AFC is an African-led international financial institution, established in 2007 whose mission is to improve African economies by proactively developing and financing infrastructure, industrial and financial assets. AFC is involved as an investor, developer and financier of various infrastructure projects, and is gaining recognition as the benchmark institution for financing the development of infrastructure projects in Africa.
AFC is the lead investor in the award winning Cabeolica project, a USD90 million, 26MW landmark renewable energy wind power project in Cape Verde. AFC is the Technical Adviser to the Central Bank of Nigeria (CBN) on the CBN’s USD2.0 billion Power and Aviation Intervention Fund (PAIF). AFC is a partner with Vigeo Holdings Limited and Tata Power Delhi Distribution Limited for the acquisition of power distribution assets, and a lead investor in the Kainji Power generation plant in the current Nigerian Government power sector privatisation round.
Additionally in Nigeria, AFC has made investments to support marginal field operators in the up and mid-stream oil and gas sector companies such as Neconde, FHN and Seven Energy. AFC is also the lead investor in Cenpower Generation Company Limited (Cenpower), which is implementing the Kpone IPP project – a 340 megawatt combined cycle gas turbine power plant in Tema, Ghana. AFC is the lead investor in the Main One fibre optic cable project, enhancing West Africa’s connection to Europe and the rest of the world through faster and more technologically advanced broadband capacity.
AFC provided a USD50 million convertible debt investment in ARM Cement Limited (ARM), the second largest cement operator in Kenya to support expansion initiatives across Eastern and Southern Africa including; development and construction of a lime plant in Tanzania and expansion of ARM’s cement capacity in Kenya. The transaction marked AFC’s first bilateral investment in Kenya. AFC provided financing for Ethiopian airlines fleet expansion in the acquisition of Africa’s first Boeing 777 airline. AFC also invested in the Bakwena toll road project in South Africa and the EURO 270 million Konan Bedie Toll bridge in Côte d’Ivoire, the landmark transport Public Private Partnership (PPP) project in Francophone Africa, underscoring its interest in investing in PPPs/PFIs in its focal sectors across the African continent. AFC has launched a landmark USD15 million project development facility with the Dutch Development Bank FMO, to fund early-stage equity investments in projects under development pre-financial close, in the infrastructure sector across sub-Saharan Africa.
To execute its mandate, AFC has established partnerships regionally, with other institutions such as the African Development Bank, African Export-Import Bank PTA Bank, Islamic Development Bank, Banque Ouest Africaine de Développement (BOAD), the Nigerian Sovereign Investment Authority (NSIA); and Internationally with the China Africa Fund, the Infrastructure Development Finance Company of India (IDFC), FMO, The Dutch Development Bank, and the US Government through USAID in the USD7 billion US Presidential “Power Africa Initiative