Africa50, AMEA Power to co-invest in solar projects across Africa

AFRICAN BUSINESS AND ECONOMYDecember 21, 2023 at 11:44 PM UTC

Africa50 and AMEA Power have entered into a deal to collaborate on and invest in significant solar plant projects across five African countries: Senegal, Tunisia, Burkina Faso, Togo, and Chad. This partnership is aimed at supporting the continent's energy transition goals and was formalized during COP28 in Dubai.

The Africa50 platform, backed by the African Development Bank (AfDB) and African governments, will play a pivotal role in financing solar energy production in Africa. Teaming up with AMEA Power, an independent power producer based in Dubai, the two entities have committed to co-develop solar photovoltaic power plants in at least five African nations.

Both parties will make co-investments to support the energy transition goals of the continent. Beyond the partnership's scope with Africa50, AMEA Power is also engaged in negotiations for concessions in several other African countries, including Gabon, the Democratic Republic of Congo (DRC), Djibouti, Egypt, Morocco, Uganda, and South Africa.

Key Takeaways

As African economies grow, the demand for energy by companies, households, and industries increases by the day. This comes with challenges of climate change and energy depletion, however, many innovators and investors believe renewable energy can help Africa counter these challenges. Financiers mostly are skeptical about funding ventures in the renewable energy space, which has hindered growth in the sector, but AMEA’s deal with Africa50—as well as recent fundraising of $75 million from SoftBank—suggests the perception towards the renewable energy opportunity in Africa could be changing.

Africa50

AMEA Power

AfDB

Solar Energy

Clean Energy

Infrastructure Development