A revolutionary project is underway on the east coast of Madagascar that could impact the lives of millions of Malagasy people.
Bisecting the green landscape of rural Toamasina, the 120-megawatt Wolobe hydroelectric power plant will use electricity from the Iwandro River to provide renewable energy to more than 2 million residents.
Once operational, the project is expected to increase the country’s energy production by more than 20%, replacing expensive and inefficient energy sources.
The project is also estimated to save Madagascar’s national electricity company Jirama 50% of its costs (around €100 million per year) and create 1,000 direct jobs during construction. The plant will act as a base load and facilitate the integration of continuous communications into the national grid.
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Africa50 brought its development track record and financial know-how to bear by acquiring a 25% stake in case manager Compagnie Générale dâHydroélectricité de Volobe (CGHV) in 2019.
The initiative will provide a key platform for the organisation to focus on unlocking investment in Africa’s infrastructure and supporting countries’ transition to the internet, as investors and partners gather at the Africa50 member conference in Antananarivo.
Worobe is just one example of the continent-wide impact Afrika50 is making in the renewable energy space. Afrika50 is the builder and long-term partner of Scatec Egypt, which operates the 1.5 GW Benban Solar Park in the Egyptian desert.
Africa50 has acquired a 15% stake in Nachtigal Hydro, a 420 MW hydroelectric power plant in Cameroon that could increase the country’s electricity generation capacity by 25%. Investors are supporting other energy transition projects in Kenya, Mozambique, Nigeria and Senegal.
In June, Africa50 signed a landmark agreement with the International Organization for Security and Co-operation in Europe (IRENA), under which Africa50 commits to supporting the energy transition and infrastructure across Africa through the Energy Transition Accelerator, a financial support vehicle of IRENA. A platform providing up to $100 million in capital and joint ventures.
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It has also entered into negotiations to serve as investment manager for a $200 million solar power plant proposed by the International Solar Alliance in Africa. It is worth remembering that Africa’s needs are vast.
IRENA predicts that by 2022, only 2% of the world’s renewable energy consumption over the past two decades will come from Africa, with significant regional differences, while less than 3% of the world’s renewable energy will be in Africa. Investment and support from Africa50 and other organizations is critical to closing the gap.
But it’s not just energy where Africa50 is making a difference. From investments in primary and secondary schools in Morocco and Tunisia to border posts in Ivory Coast, information in Ghana, internet in Kenya, healthcare in Kinshasa and Brazzaville in Tanzania, and railways connecting new cities in Rwanda, the scope of the group’s activities is truly ambitious.
When the business owners gather in Antananarivo, it will be important to review the progress of these projects and decide what exciting initiatives could benefit the lives of Africans across the country.
