The Fund for Export Development in Africa (FEDA) of the African Export-Import Bank (Afreximbank) has announced that it has obtained internal clearances to purchase a strategic minority investment in Geregu Power Plc.
The move, according to a statement released yesterday by Afreximbank, is to realize Nigeria’s power sector roadmap – one of the country’s top power generation businesses, with a capacity of more than 430 megawatts, is a very strategic asset.
FEDA is the development impact investment platform of Afreximbank with a mission to increase intra-African commerce, export development, and industrialization in Africa.
The statement claims that FEDA intends to assist the company as a minority investor and collaborate with the current owners and management group to propel the company’s growth over the following several years.
According to the statement, FEDA aims to support the business as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.
Commenting on the deal, the Chairman, Board of Directors, Geregu Power Plc, Mr. Femi Otedola said, “as the pioneer Power Generation Company on the Nigerian Exchange Limited (NGX), the interest shown by FEDA, is an expression of its firm belief not only in the Company but also in the future of the Nigerian Electricity Supply Industry (NESI).”
He added, “in a period of contracting economic activity globally, to attract this investment from FEDA is a testament to our long-term strategic plans and will accelerate our expansion to the wider West African Market.”
According to Prof. Benedict Oramah, President and Chairman of Afreximbank and Chairman of FEDA platform entities, “We are very pleased with this proposed investment, which marks a critical step towards supporting Nigeria’s power sector and, more broadly, towards advancing Africa’s industrialization and energy security.
“Without adequate power, Africa cannot achieve global export competitiveness. Afreximbank and its subsidiaries, including FEDA, are focused on creating a level playing field so that African products can compete at near equal footing with those originating from other markets.
We hope that this approved investment will take us closer toward that goal”
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