Cape Verde: A.P. Moller Capital in wind energy deal
A.P. Moller Capital has, through the Africa Infrastructure Fund, completed the acquisition of a 44% stake in Cape Verdean wind energy producer Cabeolica from Africa Finance Corporation (AFC).
Cabeolica is Cape Verde’s largest IPP and renewable energy producer and, together, A.P. Moller Capital and AFC, who will remain a shareholder, will focus on further improving supply of renewable energy in Cape Verde.
Cabeolica sells electricity to the national utility Electra under a long-term power purchase agreement. With wind farms located on four islands in the Cape Verde archipelago with a total capacity of 25.5MW, the company has provided reliable renewable power to the grid since the start of its operations in 2011. The wind farms are operated by a highly experienced local management team with extensive knowledge of the Cape Verde energy market.
This acquisition is a good indication of the positive investment environment in Cape Verde and testimony to the country’s ability to attract large international actors notwithstanding the relative size of its economy.
Lars Reno Jakobsen, senior partner at A.P. Moller Capital said: “A.P. Moller Capital has a clear vision to be an active long-term participant in the global energy transition, including to support the growth of renewable power generation combined with stable energy supply. We are pleased to partner with AFC, Electra and the Government of Cape Verde in Cabeolica to ensure the continued supply of reliable and cost-effective renewable energy in Cape Verde and we aim to build upon this investment with future growth in the sector on the African continent.”
“This acquisition demonstrates the massive potential for private capital to be deployed on a commercial basis to provide essential and sustainable energy infrastructure in Africa,” said Samaila Zubairu, president and CEO of AFC. “We are delighted that A.P. Moller Capital will be providing its considerable expertise as well as funding by joining us as co-investors.”
AFC will continue to hold a 50% stake in Cabeolica, alongside the Government of Cape Verde and Electra, who together own the remaining 6% stake.
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.