African Development Bank Invests $50 Million in Indigenous Power Developer CEC Africa
Thursday, May 14, 2015
The Board of Directors of the African Development Bank (AfDB) approved on 29 April 2015 a $50 million investment in CEC Africa Investments Limited, a multinational power company headquartered in Nigeria and Zambia.
“By supporting an indigenous power developer (CECA), the Bank is helping create a pool of pan-African investors besides assisting in mobilizing the necessary capital to increase access to energy in Africa,” AfDB President, Donald Kaberuka said.
CEC Africa (CECA) seeks to acquire and develop distribution and transmission assets and complementary greenfield generation projects throughout Sub Saharan Africa. By investing across the energy value chain (generation, transmission, and distribution), CECA aims to reduce electricity losses while improving the overall economics in Africa’s power sector.
CECA has invested in two operating companies in Nigeria: Abuja Electricity Distribution Company and North South Power, which holds a 30-year concession on the 600 MW Shiroro Hydro Power Plant, both acquired during the recent Nigerian Power Sector Privatisation Programme. In addition, CECA has a number of greenfield power projects under active development in Southern and Western Africa, as well as a reserve pipeline spanning Eastern and Central Africa. Through these investments, CECA aims to become one of Africa’s leading power utilities, thereby catalysing additional private sector participation in its energy markets.