South Africa: Harith, Mergence and Zungu acquire infrastructure assets
Harith InfraCo has acquired the Pan African Infrastructure Development Fund’s stakes in a range of assets.
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Harith InfraCo, an infrastructure holding company, has acquired the Pan African Infrastructure Development Fund’s (PAIDF) stakes in a range of energy, digital infrastructure, and transport assets. Harith InfraCo is a strategic partnership between Harith General Partners, Zungu Investments, and Mergence Investment Managers. Together with institutional investors, the partnership has taken over PAIDF I’s shareholding in AHL, CIVH, and Lanseria.
AHL, one of Africa’s largest independent power producers, has a portfolio spanning six power generation projects across five countries: Kenya, Nigeria, Ghana, Sierra Leone, and South Africa. Its assets include Lake Turkana Wind Power, which supplies 14% of Kenya’s energy grid and is the continent’s largest wind power project. Other significant holdings include power plants in Nigeria and Ghana, as well as South Africa’s Kelvin Power. Beyond its current energy platform, AHL is exploring new investments.
CIVH, another key acquisition, owns the Maziv Group, which in turn controls brands such as Vumatel and Dark Fibre Africa, making it an important player in Africa’s digital infrastructure sector.
The deal also transfers PAIDF I’s significant stake in Lanseria International Airport, Gauteng’s privately owned international airport, to Harith InfraCo.
“Harith InfraCo’s acquisition of the PAIDF assets is ... remarkable for its timing, coming as it does during a period of sluggish fundraising and exit activity within the private equity space in which we have played since our founding 18 years ago,” said Harith CEO Sipho Makhubela.
PAIDF I was set up in 2007, as a vesting trust, pursuant to the laws of South Africa. The objective of the fund is primarily to invest in private equity interests in infrastructure development projects in sectors such as power and energy, telecommunication, transport, water and sanitation on the African continent. PAIDF I commenced operations in September 2007 with commitments totaling $625 million from nine investors. In 2009, a tenth investor joined PAIDF I after its second close and total commitments increased to $630 million. The fund was set-up with its 15th anniversary as its winding-up date, unless further extended by two additional one-year periods. That milestone was reached in 2022, and subsequent to the end of the two additional one-year extension periods, it is now in effective wind-down.
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