AFC & Infinity Group set to buy Lekela Power

Africa Finance Corporation (AFC) and Infinity Group are poised to make a significant impact on the energy landscape in Africa with their acquisition of Lekela Power, which includes operational wind power projects boasting a combined installed capacity of over 1 gigawatt. In a recent interview on CNBC Africa, Samaila Zubairu, the President and CEO of AFC, highlighted the importance of this deal and outlined the ambitious plans for the future of renewable energy in Africa. Zubairu emphasized the pressing need for energy access across the continent, citing Africa's substantial energy deficit despite its abundant resources. With Africa possessing 60% of the world's renewable energy sources but only 1% of those harnessed to date, the potential for growth and development in the renewable energy sector is vast. The acquisition of Lekela Power presents an opportunity for AFC and Infinity Group to significantly increase energy access for Africans by expanding the existing capacity from 1 gigawatt to over 3 gigawatts in the next four years. The strategic focus on wind, solar, and hydro projects aligns with AFC's aim of building a robust renewable energy platform. Leveraging their combined assets and operational capabilities, AFC and Infinity Group are poised to drive down tariffs and enhance energy accessibility for African populations. Zubairu highlighted successful tariff reductions in Senegal as a demonstration of their commitment to making electricity more affordable and accessible. Highlighting the urgency of accelerating investments in cleaner and more affordable energy solutions, Zubairu underscored the critical role renewable energy plays in addressing Africa's energy needs. With significant portions of the population still lacking access to electricity, particularly in rural areas, the transition to cleaner energy sources like solar power is imperative. By harnessing Africa's abundant solar resources and mobilizing local capital, AFC aims to spearhead the energy transition and drive economic growth and job creation. Zubairu acknowledged the importance of African governments taking the lead in advancing renewable energy agendas, noting initiatives like Nigeria's rural electrification program as steps in the right direction. However, he emphasized the need for greater urgency and scaled investments in renewable energy to meet the continent's growing energy demands. By tapping into African pension funds, central banks, and insurance companies, AFC aims to channel local resources towards sustainable energy projects that benefit African communities. As Africa stands at a pivotal moment in its energy transition journey, the acquisition of Lekela Power by AFC and Infinity Group signals a significant step towards achieving cleaner, more affordable energy solutions for the continent. With a strong focus on renewable energy expansion and driving down tariffs, AFC is poised to play a crucial role in reshaping Africa's energy landscape and unlocking its vast economic potential.