A joint venture to develop power plants across countries in the the sub-Saharan Africa region that will focus on Angola, Botswana, Mozambique, Uganda, Nigeria, Kenya and Ghana in the first phase is in the works.
QG Africa Mezzanine LP, an investment fund managed by QG Investments Africa Management Ltd. (QGIAM), has announced the establishment of a Power Development Company, QG Power Africa (QGPA), with Tomé International Ltd. (Tomé) and Independent Power Corporation PLC (IPC) to develop power assets across sub-Saharan Africa.
QG Africa Mezzanine LP, a US$250 million investment vehicle with attractive risk diversification across countries, sectors and underlying demand, will support this joint venture as strategic investor; while Tomé will be responsible for project management and IPC for the development of the power assets.
QG Africa Mezzanine LP will explore investment opportunities for early stage, expansion and exit including Greenfield and Brownfield investments.
According to the organisation, the rationale behind the investment goes beyond generation of solid returns, it is the infrastructure sector’s substantial potential for job and wealth creation and local supply chains that positively impacts national economies.
“The joint venture arrangement of QGPA is based on an exceptional match of capabilities and expertise of the involved parties to conceive and develop power projects across the sub-Saharan region. Tomé and IPC’s track record and the newly created platform for further growth were highly attractive to QG Africa Mezzanine LP,” says Milko Skoro, , Managing Director, Head of Structuring said in remarks to welcome the launch of QGPA.
Skoro further said, “We look forward to contributing to close the infrastructure gap and support national growth plans with successful power assets in a number of African markets.”
Commercial infrastructure projects in sub-Saharan Africa currently show unparalleled potential and resilience against the perceived risks associated with the African continent,” says a release from the organisation.
