AfrElec: Egypt’s Infinity and AFC agree to buy Lekela Power from Actis-led joint venture

Egypt’s Infinity, a leading renewable energy company and part of Mansour Group, in partnership with African Finance Corporation, Africa’s leading infrastructure solutions provider, has agreed to fully acquire Africa’s largest renewables player Lekela Power, owned 60% by Actis, a global investor in sustainable infrastructure and 40% by a consortium led by Mainstream Renewable Power Africa Holdings.

The proposed acquisition includes Lekela Power’s portfolio of operational wind power projects, which have a combined installed capacity of over 1 GW, mainly located in South Africa, Egypt and Senegal. It also includes Lekela’s 1.8-GW pipeline of greenfield projects, the majority of which are anticipated to reach financial close in the near future.

Africa’s installed renewable capacity is set to grow from 54 GW in 2020 to more than 530 GW by 2040, according to the International Renewable Energy Agency (IRENA), with solar PV soaring to 340 GW and wind rising to 90 GW. Increasing renewable energy resources will also drive energy access, with almost half of Africa’s population still without access to electricity. Cantor Fitzgerald, ABSA and Norton Rose Fulbright advised Infinity and AFC on the transaction.