Actis exits Globeleq Africa to CDC, Norfund consortium

Actis, a private equity firm that invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America, says it has completed the sale and transfer of Globeleq Africa—the leading power generation platform in Africa—to a company owned by Norfund, the Norwegian investment fund for developing countries and CDC Group which is a UK government’s development finance institution.

Globeleq is an experienced developer, owner and operator of independent power projects in the emerging markets, with a specific focus on Africa and the Americas.  It develops economically sustainable businesses that support the continued development of the electric power sector in these regions.

Actis in a statement obtained by BusinessDay disclosed that Norfund acquired a significant minority stake, about 30 percent, in Globeleq Africa for a final cash consideration of US$227 million while CDC Group, which already held a majority indirect investment in Globeleq Africa via the Actis Infrastructure 2 fund, transferred its interest into the new company owned jointly with Norfund.

The statement also disclosed that Globeleq Africa manages electricity-generating assets across Cameroon, Tanzania, Cote d’Ivoire, Kenya and South Africa, spanning gas, heavy fuel oil (HFO) wind, and solar technologies.

“During the past seven years, through Globeleq, Actis has invested over $350 million in Globeleq Africa. As a result, Globeleq Africa has more than doubled its installed capacity to 1,234MW and the business is now the leading power generation platform on the continent”,  the statement revealed.

 Actis applies rigorous Environmental, Social and Governance (ESG)  standards across its portfolio companies and Globeleq Africa is no exception;  the business operates with world-class ESG standards in every underlying asset just as the strong commitment to maintaining these standards will continue under the ownership of CDC and Norfund.

Key milestones during Actis’s investment in Globeleq Africa include the completion, on time and below budget, of the Azito power plant conversion in Cote d’Ivoire from open to combined cycle technology.   The conversion increased the plant’s installed capacity by almost 50 percent (to 432MW), eliminating the need for additional gas which has significantly contributed to the stability of Côte d’Ivoire’s power sector.

Globeleq Africa also successfully backed the construction of three renewable energy generation assets with a combined capacity of 238MW under the first round of the ambitious South African Renewable Energy Procurement Program.  The next growth milestone will be the expansion of the Kribi generation plant in Cameroon, currently in advanced development and expected to reach financial close later in the year.

The statement quotes Torbjorn Caesar, Actis Senior Partner,  as saying,  “we are proud of what we have achieved over the past decade in terms of creating a much needed energy infrastructure in Africa. We are confident that CDC and Norfund, working as direct investors with Globeleq Africa’s management team, can successfully continue that work”.