The deal hands the financing, construction and long-term operation of two high-voltage transmission lines to a private consortium, with KETRACO paying only when the assets are delivered and performing. 

The project, one of the biggest changes yet in how Kenya plans to fund and manage its grid expansion, will be done by a consortium led by Africa50 and India’s Power Grid Corporation, a utility that carries about half of India’s electricity. 

A special project company will be set up to design, build, finance, operate and maintain the lines over a 30-year concession. After that, the assets return to KETRACO in good condition.

At the centre of the agreement are two transmission corridors meant to fix long-standing weaknesses in the grid. One is a 400kV double-circuit line stretching roughly 180 kilometres between Lessos and Loosuk, with new substations along the route. 

It cuts across parts of Nandi, Elgeyo Marakwet, Baringo and Samburu counties and is designed to carry wind power from Lake Turkana and future geothermal output from the North Rift.

The second is a 220kV double-circuit line running about 72 kilometres from Kibos through Kakamega to Musaga. It brings high-voltage infrastructure into Western Kenya for the first time and supports lower-voltage networks in Kisumu, Vihiga and Kakamega. 

The goal is to ensure fewer outages, lower losses and enough capacity to support factories and businesses that have had challenges with unstable power.

Together, the two lines are expected to make renewable power cheaper and more reliable for millions of people, while backing economic growth in regions that have often sat at the edge of the national grid.

Energy Cabinet Secretary Opiyo Wandayi described the agreement as proof that Kenya can attract serious global capital into its energy sector. 

He said, “This partnership between KETRACO and Africa50-PowerGrid consortium demonstrates the strength of Kenya’s investment environment and the confidence of global partners in our energy agenda. We are not only accelerating access to reliable and affordable electricity, but also laying the foundation for industrialisation, job creation, and inclusive economic growth. This is how we turn policy into progress.”

The financing model was also a key point at the signing. National Treasury Cabinet Secretary John Mbadi stressed that the full $311 million cost would be carried by the private partner. “The project’s financing structure reflects prudent fiscal management,” he said. 

“The $311 million (KES 40.4 billion) cost will be fully financed by the private partner, safeguarding public resources and allowing the Government to continue investing in priority sectors such as health, education, and agriculture.”

Under the contract, KETRACO will make availability payments only after independent experts confirm that work has been completed to standard. Performance guarantees and full insurance cover are built into the deal, and local content rules require strong participation by Kenyan professionals, contractors and suppliers.

KETRACO’s Acting Managing Director Eng. Kipkemoi Kibias said the company plans to add about 8,000 kilometres of transmission lines over the next two decades, a programme that needs around $5 billion. Traditional funding sources, he noted, cover only a small share of that requirement.

“The signing of this Public-Private Partnership agreement with Africa50 and Power Grid Corporation of India reflects our strong commitment to innovative financing solutions in infrastructure delivery,” Kibias said.

Africa50’s Chief Executive, Alain Ebobissé, described the project as a model for the continent. He said, “We are proud that Africa50 has led another Africa-first innovation with this Independent Power Transmission (IPT) project. 

“We commend H.E. President William Ruto and the Government of Kenya (GoK), for the bold initiative that will be the blueprint to further increase private sector investment into the expansion and stabilisation of Africa’s power transmission networks, which are critical to bridging the continent’s electricity access gap.”

Power Grid Corporation of India also showed that Kenya’s project could be replicated elsewhere. Chairman and Managing Director, Dr R.K. Tyagi, said, “By combining our technical expertise and global excellence in the transmission sector with Africa50’s project development and structuring capabilities, POWERGRID is committed to supporting Kenya, sharing a scalable model with other African countries, and working with Africa50, KETRACO, and other trailblazers to realise Africa’s energy potential.”

Beyond the figures and contracts, the agreement aligns with Kenya’s long-term power plans, including the Least Cost Power Development Plan and KETRACO’s Transmission Master Plan. If delivered as promised, it reduces reliance on expensive thermal generation and tightens the link between renewable energy projects and the national grid.

The funding, which includes $24 million in equity and $17.5 million in debt, will support the company’s goal of delivering 1,000 electric buses over the next three years. 

The equity round was led by Africa50, with participation from Novastar Ventures, CFAO Kenya, Mobility54, and other key investors.

This capital will help BasiGo scale its electric bus services in both Kenya and Rwanda. In particular, the debt facilities provided by the U.S. Development Finance Corporation (DFC) and British International Investment (BII) will help the company advance its electric bus deployment in these countries. 

The $10 million debt from DFC will primarily support BasiGo’s Kenyan operations, while the $7.5 million from BII will facilitate the expansion into Rwanda.

Jit Bhattacharya, CEO of BasiGo, stressed the company‘s focus on creating a cleaner and more sustainable environment for public transport in Africa. 

He noted that the funding validates BasiGo’s business model, allowing the company to focus on both scaling operations and achieving profitability. 

The investment also enhances BasiGo’s “Pay-As-You-Drive” programme, an innovative financing model that has made electric buses more accessible to public transport operators.

Again, the funds will be used to increase BasiGo’s manufacturing capacity at its assembly plant in Kenya and to introduce new types of vehicles. BasiGo’s electric buses, already in use in Nairobi, are being rolled out in Rwanda, where the company has launched a pilot project with six buses operating in Kigali and nearby regions. 

With over 300 reservations from Rwandan bus operators, the new capital will allow BasiGo to meet rising demand in the country.

Seema Dhanani, from British International Investment, spoke about the positive environmental impact this investment will have, particularly in reducing pollution from public transport. With more electric buses hitting the roads, both Kenya and Rwanda are expected to see notable improvements in air quality and public health.

This funding round is one of the largest investments in the electric mobility sector in Africa and bolsters BasiGo’s aim in the region’s transition towards cleaner, more sustainable transportation solutions, ensuring e-mobility attains resilience across sub-Saharan Africa.

• The project supports the development and financing of bioethanol production and distribution infrastructure in Madagascar
• The initiative will reduce the intensive deforestation in Madagascar which is partly caused by the use of cooking fuel such as charcoal and wood
• The Letter of Intent is expected to limit reliance on harmful fuels that have a devastating impact on climate and public health – women and children are most at risk

Africa50, the African Development Bank (AfDB), the OPEC Fund for International Development and the Government of Madagascar have signed a Letter of Intent (LoI) to scale up the production capacity of bioethanol in Madagascar – a major step towards making clean and safe cooking a reality for millions of people across the country.

The announcement was made in Antananarivo on the sidelines of Africa50’s General Shareholders Meeting (GSM) with signatories including Hon. Olivier Jean Baptiste, Minister of Energy and Hydrocarbons of Madagascar; Khaled Al-Zayer, OPEC Fund Public Sector Director, East and Southern Africa; Alain Ebobissé, CEO, Africa50; and Kevin Kariuki, Vice President, Power, Energy, Climate and Green Growth, African Development Bank (AfDB).

The partners intend to support the uptake of bio-ethanol in Madagascar through the construction and improvement of production infrastructure and the strengthening of supply chains to increase downstream distribution capacity and facilitate accessibility and availability for consumers. The program aims to rapidly increase access to clean cooking in remote and underserved areas and reduce dependence on highly polluting cooking fuels which have a severe impact on health, gender and climate.

It is estimated that 99 percent of Madagascar’s population rely on charcoal and wood for cooking, which contributes to rapid deforestation in the country.

The World Health Organization (WHO) reports that indoor pollution, which is largely caused by cooking using harmful fuels, is the second leading cause of premature death in sub-Saharan Africa, responsible for c. 700,000 deaths annually – primarily among women and children under 5.

Africa50 intends to act as the lead developer for the production infrastructure, while AfDB and OPEC Fund intend to provide technical and financial assistance to the Government of Madagascar which will help implement the project.

The LoI forms part of broader efforts by Africa50 and AfDB to mobilize innovative finance to support the energy transition in Africa.

Olivier Jean Baptiste, Minister of Energy and Hydrocarbons of Madagascar, said:

“The widespread use of harmful fuel in Madagascar is a practice that impacts negatively on health, gender and climate in Madagascar. As part of our mandate to develop critical infrastructure for our citizens, we are proud to be part of this partnership which will move the dial on access to clean cooking fuel in Madagascar”.

Khaled Al-Zayer, OPEC Fund Public Sector Director, East and Southern Africa, said:

“Supporting clean cooking is one of the key elements of the OPEC Fund’s climate action as it involves many crucial aspects of sustainable development. Introducing clean, efficient and affordable appliances makes substantial contributions to improving public health, reducing adverse environmental impacts and facilitating women empowerment”.

Alain Ebobissé, CEO, of Africa50, said:

“Africa50 is committed to increasing access to clean cooking fuel in Africa by joining forces with like-minded partners to scale up investment in bio-ethanol related infrastructure. We are pleased to be part of this partnership with the Government of Madagascar as part of broader efforts to develop critical infrastructure in the country that will limit deforestation and climate change while improving livelihoods”.

Kevin Kariuki, Vice-President: Power, Energy, Climate & Green Growth, African Development Bank, said:

“This is an important step for increasing access to clean cooking fuel in Madagascar. Developing critical infrastructure that saves lives and positively impacts climate is a key part of our investment strategy at the AfDB, and we are delighted to partner with Africa50, the OPEC Fund, and the Government of Madagascar to advance clean cooking in the country”.

• The project highlights the critical role of data centres in promoting connectivity, supporting African entrepreneurship and businesses in a digital era
• The partnership increases employment opportunities and facilitates economic transformation
• Underlines Africa50’s commitment to unlock Africa’s digital economy through strategic investments in data centres, smart cities and subsea cables across the continent
• Africa50 mobilises capital to meet the region’s expected future demand for data, internet capacity, and tech-empowered services

PAIX Data Centres, a Pan-African developer and operator of data centres, today announced the expansion of its facility in Accra to 1.2 MW, in a critical boost to the digital economy that will support connectivity and economic growth.

Africa50, the pan-African infrastructure investor and asset manager has invested over $30 million in growth equity in PAIX Data Centres to support the company’s expansion into new markets and upgrade current facilities.

The expanded PAIX data centre, now one of the largest in Ghana, will help internet service providers (ISPs), cloud providers, and enterprises fully take advantage of robust digital infrastructure and improved connectivity, enabling the African business community to thrive in the digital era.

It is estimated that only between 10% and 30% of effective data centre demand in sub-Saharan Africa is being serviced today.

Attracting new and deep pools of public and private capital, Africa50, the pan-African infrastructure asset manager, aims to accelerate strategic investments in green data centres, transmission lines, smart cities, fibre optic networks, and more to maximise African productivity.

The upgraded facility boasts state-of-the-art infrastructure and robust security measures, ensuring optimal performance and reliability for mission-critical applications and services.

The data centre also features advanced cooling and waste management systems and the increased integration of renewable energy as a power source to improve environmental impact.

The strategic location in Accra offers low latency connectivity to major regional and international network routes and subsea cables, further enhancing its services’ overall efficiency and performance.

Africa50’s investment in PAIX Data Centres is part of a growing portfolio of digital infrastructure assets that will drive growth in Africa’s digital economy:

• Africa50 and the Rwanda Development Board (RDB) signed an Implementation Agreement (IA) in May to develop the Kigali Innovation City (KIC). This 61-hectare smart city is expected to generate $150 million in ICT exports annually and attract over $300 million in foreign direct investment.
• In 2023, Africa50 signed a $320 million partnership with Bayobab to develop Project East2West, a terrestrial fibre optic cable network to improve internet access and connectivity in 10 geographies across East And West Africa.

Raza Hasnani, managing director, Head of Infrastructure at Africa50 and Chairman of the Board of PAIX, noted:

“We share a deep conviction that high quality, sustainable infrastructure transforms economies and societies. Our over $30 million equity investment in PAIX Data Centres is part of our broader strategy to create the connectivity required to accelerate Africa’s digital transformation. We are proud that PAIX Data Centres is expanding and adopting best in class sustainability practices.”

Bright Tawiah, managing director, PAIX Data Centres, Ghana, said:

“This expansion reaffirms our dedication to providing best-in-class data centre solutions to our customers in Accra and beyond. As one of Africa’s digital economy hotspots, Accra plays a vital role in driving innovation and growth across various industries. We are proud to be at the forefront of this transformation, enabling businesses to thrive in today’s increasingly connected world.”

As part of the agreement, Africa50 has pledged up to USD 100 million to fund and co-finance renewables-based energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing (ETAF) platform, reinforcing efforts towards sustainable development and climate action across the continent.

The agreement was signed today on the margins of the OPEC Fund Development Forum in Vienna by Mr. Francesco La Camera, IRENA director-general, and Mr. Alain Ebobissé, Africa50 CEO.

“For the first time in a decade, the most recent data show that the number of people without access to electricity has increased significantly,” said Mr. La Camera. “With Sub-Saharan Africa representing the majority of those impacted, we must be diligent and committed to urgently addressing this growing issue. Renewables represent the most effective, climate-safe solution available, and this partnership with Africa50 will be pivotal in strengthening the ETAF Platform’s impact across Africa.”

Mr. Alain Ebobissé, CEO of Africa50 said,

“The continent must focus on the dual goals of reducing emissions and accelerating economic development. Investing in and developing transformational renewable infrastructure is a critical step to achieving net-zero. The IRENA ETAF platform will be an important launchpad to scaling and accelerating our investments into renewable projects that will ultimately reduce the negative impact of climate change on our people and help build a more sustainable future”.

The ETAF platform, established in 2021 with support from the United Arab Emirates, aims to scale up renewable energy projects that contribute to Nationally Determined Contributions (NDCs) in developing countries, while also bringing benefits to communities through enhanced energy access and security, and promoting economic growth and diversification.

With Africa50 now on board, the ETAF Platform has grown to include 14 partners, pledging a total of 4.15 billion USD, highlighting its role as one of the most inclusive financing platforms for a renewables-based energy transition.

The partnership leverages IRENA’s global membership to attract project proposals through the ETAF Platform and Africa50’s expertise in project development and equity financing.

Later this year, on September 1st, 2024, IRENA will co-host the Accelerated Partnership for Renewables in Africa (APRA) Investment Forum with the Kenyan government to connect projects developers with potential financiers through a curated matchmaking program, as well as projects coming from APRA partners and other international organizations in support of APRA development goals.

This marks an unprecedented milestone for the continent, as it represents the first private vehicle infrastructure platform launched by Africa50.

The collaboration brings together a diverse group of influential stakeholders, including 17 African shareholders comprising sovereign wealth funds, development finance institutions, banks, pension funds, asset managers, and retirement agencies, alongside two international institutional investors.

Moreover, it is anticipated that additional entities will join this monumental initiative.

The shareholders have demonstrated their commitment by signing subscription agreements and letters of intent to invest in the fund.

This momentous event took place on Monday, July 3rd, during the Africa50 Infrastructure Forum and General Shareholders Meeting held in Lomé, the capital of Togo.

The primary objective of the fund is to stimulate further investment in critical infrastructure across Africa, with a focus on sectors such as energy, transportation, telecommunications, and water, among others.

During the signing ceremony, Dr. Akinwumi Adesina, President of the African Development Bank and Chair of the Africa50 Board, expressed his admiration for the initiative, stating, “This is impressive and a first for Africa.

It is remarkable and unprecedented to have 17 African institutions participating in such a transforming initiative to invest in an African infrastructure fund.

With the Fund, we are positioning the Africa50 Group to play a lead role in helping to tap into the more than $98 trillion of global assets under management.”

The African Development Bank has committed $20 million in equity investment to the Africa50 Infrastructure Acceleration Fund. Other notable investors include the International Finance Corporation, the Nigeria Sovereign Investment Authority, the Arab Bank for Economic Development in Africa, the West African Development Bank, CDC Sénégal, CDC Benin, CNSS Togo, CDG Invest, and Attijariwafa Bank of Morocco.

Aminu Umar-Sadiq, the Chief Executive Officer and Managing Director of Nigeria Sovereign Wealth Fund, emphasized the agency’s commitment to sustainable infrastructure and its vision to contribute to Africa’s economic growth and development through profitable and responsible investments.

Umar-Sadiq stated, “Our investment in the Africa50 Infrastructure Acceleration Fund is an opportunity to increase our development impact in Africa while generating attractive financial returns.”

Dr. Sidi Ould Tah, CEO of the Arab Bank for Economic Development in Africa, highlighted Africa’s enormous potential and expressed his delight at partnering with Africa50 to scale up infrastructure development on the continent.

Tah remarked, “Africa is a region with tremendous potential and a key priority for us, so we are delighted to join a credible partner like Africa50 in this groundbreaking partnership to scale up infrastructure development on the continent.”

Alain Ebobissé, CEO of Africa50, believes that securing commitments from such prominent African institutional investors heralds a new era of collaboration and investment in Africa’s infrastructure sector. Ebobissé asserted, “This African-led initiative is a powerful demonstration of our shared vision to transform Africa’s infrastructure landscape.

Together, we will catalyze African financial resources to lay the foundations for a better future, one that drives prosperity, job creation, and sustainable development for all Africans.”

The Africa50 Infrastructure Acceleration Fund is a 12-year closed-end infrastructure private equity fund that aims to mobilize substantial and long-term institutional capital from African and international institutions.

The fund will primarily make equity and quasi-equity investments, with a focus on taking majority stakes in infrastructure projects across Africa.

This landmark initiative holds great promise for Africa’s future, as it seeks to bridge the infrastructure gap and drive economic growth and prosperity throughout the continent.

With the support of prominent investors, the Africa50 Infrastructure Acceleration Fund has the potential to create lasting positive change for Africa and its people.

Now with a total funding amount of $36,000,000, Poa Internet plans to deepen its reach across Kenya and then expand into other countries in Africa.

The company is focused on enabling internet connectivity and taking underserved Africans online. Its goal is to give them a meaningful internet experience which comprises the ability to stream videos, without worrying about the amount of data being consumed.

With over 12,000 customers, including homes and small businesses in Nairobi’s low and middle-income neighbourhoods, Poa Internet has garnered tens of thousands more through its street Wi-Fi connections. 

The startup has laid out its fibre network in neighbourhoods that are typically not the first target markets for its competitors like Safaricom Home by East Africa’s biggest telco Safaricom, Faiba by Jamii Telecommunication Limited and Zuku.

Poa Internet has successfully built remedies to meet the needs of last-mile connectivity, and their ultra-low-cost solutions can be used to address the significant connectivity gaps in Kenya and across the continent as a whole. This is particularly important at a time when societies and economic activities are increasingly becoming digitised as a result of the COVID-19 pandemic.

On the other hand, Africa50 currently has 31 shareholders including the AfDB, the Central Bank of West African States (BCEAO), Bank Al-Maghrib (the Central Bank of the Kingdom of Morocco, and 28 African countries. The company’s strategy is also focused on Increasing access to reliable and affordable internet connectivity.