Africa Finance Corporation (AFC) has bought early-stage development capital provider InfraCo Africa’s stake in the 25.5 MW, €65-million Cabeólica wind farm, in Cape Verde, for an undisclosed amount.
The deal followed a share purchase agreement signed in May last year, in which AFC agreed to buy InfraCo Africa’s stake in the project.
Operating across four of Cape Verde’s islands – Boa Vista, Sao Vincente, Sal and Santiago – and comprising over 30 wind turbines, Cabeólica provided around 20% of the islands’ energy needs.
To date, Cabeólica had generated over 300 000 MWh of clean wind power.
Prior to the wind farm’s development, the islands suffered from chronic power shortages and were heavily dependent on imported oil.
“We are very excited to take a larger part in this groundbreaking project. Cabeólica provides access to electricity for 360 000 people, which is about 72% of the Cape Verde population. The project is staffed entirely by skilled Cape Verdean employees and, with sustainability at its core, it has avoided an estimated 55 000 t/y of carbon emissions and averted the need to import 15-million litres of diesel a year,” AFC CEO Andrew Alli said.
The sale would enable InfraCo Africa to recoup the early-stage development costs it had invested into Cabeólica and recycle these funds into developing other sub-Saharan African infrastructure projects.
“The sale of InfraCo Africa’s remaining stake in Cabeólica is the culmination of many years of hard work by our team and the government of Cape Verde. We are pleased to be working with AFC, once again, and hope to replicate the success of this project by reinvesting the sales proceeds into developing more projects, InfraCo Africa chairperson Brian Count said.