Norwegian Investment Fund for Developing countries, Norfund, together with the UK development finance institution CDC, announced their collaboration on Tuesday to increase power generation in Africa by 5 000MW in ten years.
According to a media statement, Norfund will receive a stake in Globeleq Africa through the Actis Infrastructure 2 Fund for an investment estimated at $225 million. CDC currently holds a ‘major indirect investment’ in Globeleq Africa through the Actis fund of which CDC will sell a portion to Norfund and invest the balance into the new initiative.
Norfund and CDC will co-own Globeleq Africa should the deal be accepted. The agreement is pending government and stakeholder approval.
Performing under the new ownership, Globeleq will continue with plans for early stage power generation developments in Africa in attempts to ease the continent’s power deficit.
Norfund Chief Executive, Kjell Roland, said that “inadequate and unreliable power supply is a major constraint on economic and social development in sub-Saharan Africa”.
Project investors said that 1 000MW is sufficient power to supply 20 000 businesses and a generation increase of this scale could create employment for 800 000 locals.