Actis to exit Lekela Power
Actis and Mainstream, the global wind and solar company, have signed an agreement to sell the Lekela platform to Infinity Group and AFC, subject to regulatory approvals and customary closing conditions.
Established in 2015 to deliver clean, reliable energy across Africa, Lekela has become the African continent’s largest pure play renewable energy independent power producer (IPP). The platform consists of over 1 GW of fully operational wind assets, including five operational wind farms in South Africa (624MW), one operational wind farm in Egypt (252MW), one operational wind farm in Senegal (159MW) as well as development opportunities in Ghana, Senegal and Egypt.
The platform was established as part of a joint venture between Actis (60%), and a Mainstream-led consortium called Mainstream Renewable Power Africa Holdings (MRPAH) (40%). The planned exit reflects the successful culmination of their partnership strategy for Lekela, following a comprehensive value creation approach.
Lucy Heintz, partner and head of energy infrastructure at Actis said, “This exit highlights the hands-on approach we take at Actis as builders and operators of leading energy platforms of scale, delivering positive impact. We’re proud to leave Lekela strongly positioned for its next phase of growth as an acknowledged sustainability leader supplying much-needed clean energy to communities across Africa, building on our net zero commitment. With our dedicated sustainability team, we have focused on an active ownership approach allowing us to deliver deep commitment to local African communities and environmental protection initiatives, investing behind the energy transition and delivering financial performance for our investors.”
Mary Quaney, group chief executive of Mainstream Renewable Power said, “There has never been a more critical time to accelerate the global transition to renewable energy, for the health of both our planet and our communities. Much of Africa is acutely vulnerable to climate change and we are proud to have worked with Actis, as well as the communities, governments, project lenders, equipment suppliers and contractors across Africa, to deliver over 1GW of operational wind power that will continue to have a positive impact for decades to come. Our vision is of a world electrified by renewable energy. Together with our strategic shareholders Aker Horizons and Mitsui, we are well positioned to lead and truly accelerate the transition to renewables in South Africa, across the African continent and in markets globally.”
Mohamed Ismail Mansour, co-founder and chairman, Infinity said, “Our acquisition of Africa’s largest independent power producer in the renewables sector is a major milestone in our strategy for growth across the African continent. We are proud to be playing a key role in contributing to a brighter future for Egypt, South Africa, Senegal and the African continent as a whole.”
Samaila Zubairu, president and CEO of AFC said, “This acquisition marks an important milestone in our journey to build a 3GW renewable energy platform. We are focused on reducing Africa’s massive energy deficit through expanding the quantum of electricity using the various energy sources available throughout the continent. Consistent with AFC’s mandate to fast-track Africa’s economic development, we have since 2007 developed and financed energy generation and access assets throughout the continent. Working together with our partner, Infinity, we aim to more than double the capacity of our joint operating assets over the next four years, which stands at 1.4 GW after the Lekela acquisition.”
Nayer Fouad, co-founder and CEO, Infinity said, “The acquisition of Lekela is a key milestone for us at Infinity as it not only becomes the largest such acquisition in the history of the continent but also signifies the continuous growth and expansion of Infinity’s efforts to create a sustainable supply of clean green energy. We will continue to build upon our endeavors to create a truly sustainable ecosystem for green energy in Africa.”
Get the most from the Africa Private Equity News app by registering a free account. Go to the app home screen and tap the round orange icon in the top-right of your screen.