Heirs Holdings Commits $2.5bn to Obama’s Power Africa Initiative
As part of his commitment to assist Africa in ensuring accessible power on the continent, former United Bank for Africa (UBA) Plc Managing Director, Mr. Tony Elumelu, is to invest $2.5 billion to boost power supply in Africa.
The investment is being made through his Heirs Holdings, the single largest investor included in the White House statement announcing the Power Africa initiative. The Africa Finance Corporation (AFC), another key partner from Africa participating in the US Presidential Power Africa Initiative, will invest about $250 million in the power sectors of Ghana, Kenya and Nigeria, and an additional $1 billion in additional investments in sub-Saharan Africa energy projects.
Power Africa is a multi-stakeholder partnership between the United States, the governments of Ghana, Tanzania, Kenya, Liberia, Nigeria and Ethiopia and the African private sector. The aim of the initiative, inaugurated in South Africa, during United States President Barack Obama’s town hall at the University of Cape Town, is to accelerate investment in Africa’s power sector over the next five years.
Earlier this year, Elumelu’s holding company, through its investee company, Transnational Corporation of Nigeria (Transcorp), purchased the Ughelli power plant, one of Nigeria’s largest power assets, which it plans to restore to its full generating capacity of 1000 megawatts. “The investment we are making demonstrates our intent to become a significant player in the power sector. It also shows in a clear and meaningful way that African capital can and should be part of the solution to Africa’s challenges.
We need more African companies to step up and get involved in Africa’s development. “Heirs Holdings’ investment in Power Africa is not just about creating value for shareholders. We want to conduct business in this strategic sector for the long term, in a way that links economic return to social benefits – a key component of what I call Africapitalism,” Elumelu was quoted as saying in a statement yesterday.
Also in a statement yesterday, the AFC said it would invest over $250 million in the power sectors of Ghana, Kenya and Nigeria and put another $1 billion in additional investments in sub-Saharan Africa energy projects. AFC Chief Executive Officer, Andrew Alli, commenting on the partnership, said: “The International Energy Agency has reported that sub-Saharan Africa will require more than USD 300 billion in investment to achieve universal access to electricity by 2030.
AFC will provide additional investments in energy projects, far in excess of its commitment to the Power Africa initiative”