Harith General Partners, one of the largest private investors in the infrastructure sector in the African continent, has floated a new fund in partnership with Anergi Group, an African power provider.
Harith and Anergi are establishing the Pan-African Renewable Energy Fund (PAREF) to accelerate clean energy adoption across Africa. The $300 million fund will seek to bridge the energy access gap across the continent, while accelerating Africa’s move to low-carbon economies.
The move comes after Harith last year floated a top-up fund to raise $200 million from existing as well as new investors and later launched a $250 million urban infrastructure fund for West Africa.
The new fund’s investments will seek to accelerate the execution of renewable energy projects on the continent targeting both greenfield and brownfield projects.
The International Energy Agency estimates that closing the energy access gap in sub-Saharan African countries will require an estimated annual investment of $28 billion by 2030. This comprises $13 billion for mini-grids, $7.5 billion for grid investments and $6.5 billion for off-grid investments.
Anergi is a Harith-backed energy investment vehicle developing, financing and executing some of the largest independent power projects in Africa. Its portfolio comprises five operating assets and a total installed renewable and thermal capacity of 1.4 GW, supplying up to 23 million customers across Ghana, Kenya, Nigeria and South Africa.
Harith CEO Sipho Makhubela said: “PAREF is an important and urgent response to climate change – by accelerating Africa’s race to net zero, transitioning to a low carbon future and connecting millions of Africans to sustainable, green energy. Coal, oil and biomass continue to play a significant part in Africa’s energy supply chain and the continent remains extremely vulnerable to climate change.”
Anergi Group acting CEO Neil Hopkins said, “The objective of the Fund is fully in line with Anergi’s strategy and mandate to be a key player in the implementation of the energy transition across Africa.”
Harith focuses on five core infrastructure sectors—energy, transport, telecommunications, health and water. It has combined assets under management in excess of $1.2 billion from its two private equity infrastructure funds.
Additionally, Harith manages three infrastructure mandates through two joint ventures. These include the ARM Harith Infrastructure Fund in Nigeria ($64.8 million, 12-year fund). In Namibia, it manages the Namibia Infrastructure Fund 1 (N$280 million) and NIF 2 (N$500 million).
As first reported by The Capital Quest, ARM-Harith is close to striking a power sector deal in West Africa. It also made an exit move as Equinix acquired Nigerian data centre firm MainOne for $320 million.