A consortium of leading financial institutions, including pan-African fund manager Emerging Capital Partners (ECP), A.P. Moller Capital, DEG (German Development Finance Institution), and IFU (Investment Fund for Developing Countries), has announced a significant investment in the African infrastructure sector. This collaboration has led to the formation of ECP Power & Water Holding, a new entity set to become the reference shareholder in the Eranove Group, a prominent pan-African industrial group specializing in public services and the production of electricity and drinking water.
This strategic move underscores Emerging Capital Partners’ commitment to long-term investments in critical sectors across Africa. ECP has been the largest shareholder in Eranove since 2008, and this new investment through ECP Power & Water Holding reinforces their dedication to the group and its mission to expand access to essential services. The capital injection aims to place the Eranove Group on a sustainable trajectory for growth, enabling it to significantly increase the supply of electricity and clean water to millions of people throughout Africa. A key focus of this new venture is on clean energy investments, aligning with Eranove’s strong commitment to the Green Transition and promoting environmentally responsible development across the continent.
Vincent le Guennou, Co-CEO of Emerging Capital Partners and Chairman of both the Eranove Group and ECP Power & Water Holding, stated, “This strategic partnership is central to ECP’s long-term vision as a key investor in Africa’s water and electricity sectors. It provides a substantial growth platform to support Eranove Group’s ongoing expansion and strengthens their dedication to sustainable and responsible development.”
Eranove Group has established a strong operational footprint across West Africa, with a long-standing presence in Côte d’Ivoire and Senegal. The group’s operations are extensive, marked by a turnover of 615 million euros, production of 306 million cubic meters of drinking water, and an operated electricity production capacity of 1,250 MW. Employing over 7,800 individuals, Eranove serves 2.9 million electricity customers and 1.4 million water customers as of 2020. Looking forward, Eranove is actively developing its electricity generation capabilities with two baseload power plants currently under construction and a robust pipeline of renewable energy projects, including hydroelectric and solar initiatives, across Africa. Eranove is also deeply committed to enhancing its social and environmental responsibility, aiming to meet the increasing demand for electricity while simultaneously reducing its carbon footprint. The group has already achieved a 25% reduction in carbon emissions per kWh produced since 2015, demonstrating its proactive approach to sustainability.
Jens Thomassen, partner at A.P. Moller Capital, commented on the investment alignment with their fund’s objectives: “This investment in Eranove is perfectly aligned with the strategy of The Africa Infrastructure Fund, which is to foster sustainable development throughout the African continent. Providing reliable, cost-effective energy with minimal carbon emissions is crucial for the continued progress of businesses and communities in Africa.”
Mackenzie Schow, Deputy Head of Equity Africa for DEG, highlighted the broader impact of the investment: “Our investment in Eranove Group represents a unique opportunity to support a socially responsible and sustainably profitable organization. We believe Eranove will continue to generate significant positive socioeconomic development impacts across Africa.”
Torben Huss, CEO of IFU, further emphasized the potential of Eranove: “We are very pleased to invest in Eranove because the company has the potential to become a leading energy and water provider in Africa. Eranove’s commitment to delivering sustainable services is vital for supporting the green transition and enabling both people and businesses to thrive.”
About Emerging Capital Partners (ECP)
Emerging Capital Partners (ECP) is a leading private equity firm dedicated to Africa, leveraging over 20 years of investment experience on the continent. With a portfolio encompassing more than 70 transactions and nearly 60 full exits, ECP has successfully raised over US $3.2 billion in growth capital through its funds and co-investments. Emerging Capital Partners focuses on identifying and capitalizing on long-term structural demographic and economic trends that are driving Africa’s growth. ECP is committed to working closely with its portfolio companies to implement best practices and strengthen leadership, supported by an on-the-ground team across Africa’s key economic hubs. This local presence provides ECP with deep market insights and access to unique investment opportunities.
For more information about Emerging Capital Partners, please visit www.ecpinvestments.com.
About A.P. Moller Capital
A.P. Moller Capital, established in 2017 and regulated by the Danish Financial Supervision Authority, is affiliated with A.P. Moller Holding. It manages independent alternative investment funds focused on infrastructure in developing markets. A.P. Moller Capital launched its inaugural fund, The Africa Infrastructure Fund, in August 2017, targeting investments in energy and transportation infrastructure assets across Africa.
For further details, please visit www.apmollercapital.com.
About DEG
For nearly 60 years, DEG has been a reliable partner to private sector companies operating in developing and emerging economies. DEG provides customized financial solutions, including financing, promotional programs, and advisory services tailored to meet specific client needs. DEG’s support enables businesses to achieve sustainable and successful growth, contribute to local value creation, and generate skilled employment opportunities. With a portfolio of approximately EUR 9 billion across around 80 countries, DEG is recognized as one of the world’s largest private sector development finance institutions.
Learn more at http://www.deginvest.de/.
