Malawi: InfraCo exits to Old Mutual
InfraCo Africa signed an agreement to sell its 25% stake in Golomoti JCM Solar Corporation.
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At a signing ceremony held in Blantyre, InfraCo Africa signed an agreement to sell its 25% stake in Golomoti JCM Solar Corporation to Old Mutual Infrastructure Investment Trust Fund (Malawi), which sits within Old Mutual Investment Group’s Alternative Investments capability.
Old Mutual Malawi’s involvement will be beneficial in reducing currency exchange risk on the project whilst attracting future investment into the country’s renewable energy sector.
Speaking after the signing, Ravi Dhanani, asset manager for InfraCo, said, “We are excited to be engaging with Old Mutual Malawi, which is committed to responsible investing, and to supporting Malawi’s renewable energy sector as part of its diversified infrastructure portfolio.”
Mphatso Kasalika, Old Mutual Investment Group’s acting managing director, said the completion of the transaction marks a milestone within the group’s strategy, which includes investing in renewable energy. He added that “It is a demonstration of a mutually beneficial strategy, where investors can expect solid returns from non-traditional investments, with significant economic and social impact, as the country seeks to expand and diversify energy generation.”
Commissioned in 2022, the 20MWac solar plant at Golomoti in Dedza District, approximately 100km south-east of the capital Lilongwe, has a 5MW battery energy storage system.
The deal will be finalised in August, and JCM Power will continue to operate the Golomoti Solar plant with Old Mutual Malawi appointing a director to the company board.
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