Egypt, UAE to improve renewable in Africa with new acquisitions
To increase renewable penetration to 2,000 megawatts by 2025, Infinity Power, a joint venture between Egypt’s Infinity and UAE’s Masdar has completed the acquisition of the entire shareholding of Lekela Power.
The development makes Infinity Power the largest renewable energy company on the African continent. Infinity’s key stakeholders include Africa Finance Corporation (AFC) and European Bank for Reconstruction and Development (EBRD).
Lekela currently operates 1 gigawatt (GW) of wind power projects in South Africa, Egypt and Senegal, and has a 1.8 GW project pipeline, which are in various stages of development.
The transaction was funded through equity investment from shareholders and debt from Absa Corporate and Investment Banking (Absa CIB) and Mauritius Commercial Bank (MCB).
Chairman, Infinity Power, Mohamed Ismail Mansour, said: “Having successfully finalised the Lekela acquisition, we will build upon this milestone to reach our target of installing and operating 2 GW of greenfield projects by 2025. With this transaction, we have delivered on the promise made during COP27 of being the fastest-growing renewable energy company in Africa.
“We continue to drive efforts that reduce carbon emissions, increase renewable energy sources, and develop efficient energy solutions for the entire region, in order to achieve our vision of providing clean, reliable and affordable electricity access to people in underserved communities across Africa.”
CEO, Infinity Power, Nayer Fouad, said: “We are very pleased to welcome Lekela Power into the Infinity Power family and look forward to building this next chapter together. The acquisition has the potential to bring much needed stability in power supply to African countries that are facing energy insecurity. This is a major step forward for Africa’s future, and a significant move in enabling the shift towards sustainable energy, providing a more stable and secure source of power for its citizens. It is also a key milestone in our journey, and is the beginning of the next phase of our plan as we continue working towards creating a truly sustainable ecosystem for green energy across the continent.”
UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Masdar, Dr. Sultan Al Jaber, said: “Through our investment in Infinity Power, Masdar is able to extend its reach across Africa and support developing nations on their clean energy transitions. This acquisition will give Infinity Power greater scale to deploy practical climate solutions that deliver measurable outcomes, in line with the COP28 objective of being inclusive, transparent, pragmatic, and results-oriented.”
CEO, Masdar, Mohamed Jameel Al Ramahi, said: “This landmark acquisition of Lekela Power will position our Infinity Power joint venture as the market leader in Africa, and is also recognition of the continent’s tremendous renewable energy potential. Greater access to clean energy will enable African nations to develop their economies sustainably, while meeting their climate objectives – in alignment with COP28’s goal of delivering inclusive climate progress.”
Partner and Head of Energy Infrastructure, Actis, Lucy Heintz, said: “We are delighted to announce the successful exit of Lekela. When we established Lekela, we were determined to ensure the business became a role model for what a sustainable business should look like in Africa and we are leaving the business strongly positioned both as a recognised sustainability leader and as a key player in the African energy transition, with a 2.8GW portfolio of projects in operation and development. We are confident Lekela, with its new shareholders, will continue to play a leading role in the energy transition across the continent.”