TheCable

The Fund for Export Development in Africa (FEDA) says it has received internal approvals to acquire a strategic minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.

FEDA is the development impact investment platform of the African Export-Import Bank (Afreximbank).

In a recent statement, the bank explained that as part of its intervention efforts in Africa’s energy sector, FEDA made a strategic decision to support leading energy platforms across Africa, including the renewables and transition fuels sectors.

As such, FEDA aims to support Geregu Power as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years, Afreximbank said.

In October, 2022, Geregu Power became the first electricity generation company (GenCo) to be listed on the main board of the Nigerian Exchange Limited (NGX).

Speaking on FEDA’s investment in the company, Femi Otedola chairman, board of directors, Geregu Power Plc, said the interest shown by the organisation was an expression of its firm belief, not only in the Geregu Power, but also in the future of the Nigerian Electricity Supply Industry (NESI).

On his part, Benedict Oramah, president of Afreximbank, said the proposed investment marks a critical step towards supporting Nigeria’s power sector, and more broadly, towards advancing Africa’s industrialisation and energy security.

Oramah said it is impossible for Africa to achieve global export competitiveness without adequate power.

“Afreximbank and its subsidiaries, including FEDA, are focused on creating a level playing field so that African products can compete at near equal footing with those originating from other markets. We hope that this approved investment will take us closer towards that goal,” he added.

Also speaking Marlène Ngoyi, chief executive officer of FEDA, said, “the proposed investment in Geregu Power demonstrates FEDA’s ability to intervene in opportunities and sectors that are critical towards driving the structural transformation of trade on the continent”.

“Geregu Power is a key player in Nigeria’s power sector. FEDA is pleased to partner with the company in its next phase of growth,” she added.