Private equity firm Actis to set up $1.9B pan-African renewable energy business

Actis, the UK-listed private equity group, is to set up a $1.9bn renewable energy business in Africa, in an attempt to tap the continent’s resources and meet its growing demand for electricity.

Lekela Power, as the new company is called, will be a joint venture with Mainstream, a wind and solar developer that already works in partnership with Actis in Chile. Actis will take 60 per cent of the equity in new business — which it said would run to a maximum of $220m — and Mainstream the other 40 per cent, with the rest of the funding provided as debt, from South African banks and development finance institutions.

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