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Near Madagascar’s east coast, a transformative project is taking shape that could impact the lives of millions of Malagasy.
Bisecting the green hills of Toamasina Rural District, the 120 MW Volobe Hydropower Plant will harness the power of the Ivondro River to create renewable energy for over two million citizens.
When operational, the project is expected to increase the country’s electricity generation capacity by approximately 20%, displacing expensive and polluting diesel generation.
It will also trigger estimated cost savings of more than 50% – around 100m euros a year – for Madagascar’s national utility, Jirama, while providing 1000 direct jobs during the construction phase. The plant will help satisfy base loads, facilitating the integration of intermittent renewable power into the country’s network.
Africa50 acquired a 25% equity stake in Compagnie Générale d’Hydroélectricité de Volobe (CGHV), the project manager, in 2019, bringing along its project development and finance expertise. As the investor and its partners meet for Africa50’s general shareholders meeting in Antananarivo, the project will provide a key point of reference in the organisation’s focus on unlocking investments into African infrastructure and supporting the continent’s transition to net zero.
Continent-wide impact
Indeed, Volobe is just one example of the continent-wide impact that Africa50 is making in the renewable energy sector. In the deserts of Egypt, Africa50 is project development and long-term equity partner in Scatec Egypt, which operates plants at the 1.5 GW Benban Solar Park. In Cameroon, Africa50 has acquired 15% of the equity stake in the Nachtigal Hydro Power Company, a 420 MW hydropower plant which could add 25% to the country’s generation capacity. The investor is backing other transformative power schemes in Kenya, Mozambique, Nigeria, and Senegal.
In June, Africa50 signed a key pact with the International Renewable Energy Agency (IRENA), under which Africa50 pledged up to $100m to fund and co-finance renewables-based energy transition projects and infrastructure across Africa through IRENA’s Energy Transition Accelerator Financing Platform. It has also entered discussions to act as the investment manager for the International Solar Alliance’s proposed $200m Africa Solar Facility. It is worth remembering that Africa’s needs are enormous. IRENA estimated in 2022 that only 2% of global investments in renewable energy in the preceding two decades were made in Africa, with significant regional disparities, while less than 3% of global renewables jobs are in Africa. Investment and project support from Africa50 and other organisations remain critical to closing the gap.
Not just energy
But it is not just energy where Africa50 is making the difference. From investments in a provider of primary and secondary education in Morocco and Tunisia to border posts in Côte d’Ivoire; data centres in Ghana; internet in Kenya; a rail-road link between Kinshasa and Brazzaville; healthcare in Tanzania and an innovation city in Rwanda, the scope of the group’s activities is truly ambitious. As shareholders meet in Antananarivo, checking up on the progress of these projects will be a priority – as will considering which other exciting schemes could make a meaningful difference to the lives of Africans across the continent.
David Thomas
Editor of African Business.
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