Africa Power offers a highly diversified infrastructure investment opportunity, providing a fully commercial rate of return (>25% IRR) underpinned by the support of development finance money and/or guarantees and a core income from “blue-chip” creditworthy anchor clients. Africa Power retains ownership of the vast majority of its power generating equipment and is building a strong portfolio of income generating assets, which we can use to obtain lower cost commercial debt to further leverage the company and increase returns.
We only deploy our assets against a known power demand, maximising the utilisation of our capital, and can redeploy any under-performing assets due to their smaller size and modular construction.
This is in contrast to a mini-grid model, whereby the investors risk is determined by the growth profile in each new location. We simply divert capital to the fastest growing communities and customer segment and wait until the slower communities’ needs catch-up.
We anticipate an exit in 5-6 years as either a trade sale of listing on London and Africa stock markets.
Modular Systems means easy redeployment of assets
Blue-chip, creditworthy telecom clients
Full commercial rate of return