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Fund for Export Development in Africa (FEDA) and Africa Finance Corporation (AFC) power ARISE IIP’s US$443 Million capital raise

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FEDA

ARISE IIP’s total equity capital now exceeds US$1 billion, with Africa Finance Corporation (AFC) holding a majority stake, followed by Afreximbank’s FEDA and Equitane as key shareholders

DUBAI, United Arab Emirates, October 3, 2024/APO Group/ — 

ARISE IIP, a leading pan-African developer and operator of world-class industrial parks, has announced a significant capital raise of US$443 million.

The funding includes a strategic US$300 million investment from Afreximbank’s development impact investment arm, The Fund for Export Development in Africa (FEDA), securing Afreximbank’s FEDA a significant stake in ARISE IIP. Additionally, the capital raise is supported by an additional US$143 million contribution from Africa Finance Corporation (AFC). This investment builds on debt funding relationship of over 12 years between ARISE IIP and Afreximbank, during which about US$2 billion has been provided to support ARISE IIP’s investments across Africa.

ARISE IIP’s total equity capital now exceeds US$1 billion, with Africa Finance Corporation (AFC) holding a majority stake, followed by Afreximbank’s FEDA and Equitane as key shareholders.

This significant capital injection is strategically aligned with both entities’ objectives to catalyse industrial transformation across Africa. The funds are intended to accelerate ARISE IIP’s fast expansion and operational efficiency across its 12-country portfolio, that comprises key markets such as Malawi, Cameroon, Sierra Leone, Benin, Togo, Ivory Coast, Rwanda, Gabon, DRC, Congo, Chad, and Nigeria.

The capital boost will arm ARISE IIP with the financial muscle needed to drive Africa’s industrialisation

This investment is anticipated to strengthen Africa’s position in global value chains, aligning with Afreximbank’s mandate to promote intra-African and extra-African trade.

Gagan Gupta, Founder and CEO of ARISE IIP said about this partnership: “This equity partnership with Afreximbank significantly enhances our financial capacity to execute our pan-African industrial development strategy. It’s a strong vote of confidence in our business model and growth prospects.”

President & Chairman of Board of Directors at Afreximbank, Prof. Benedict Okey Oramah, stated: “We are very pleased with our latest investment in ARISE IIP which is aligned with Afreximbank’s strategic pillars of promoting intra African Trade and facilitating industrialisation and export development across Africa. The capital boost will arm ARISE IIP with the financial muscle needed to drive Africa’s industrialisation, promote intra and extra-African trade, job creation and the general economic growth of our continent.”

Marlene Ngoyi, CEO of the Fund for Export Development in Africa (FEDA), stated: “Our investment in ARISE IIP is a critical step towards fostering sustainable industrial growth across Africa. By supporting the development of high-impact industrial infrastructure, we are helping to create an environment that will drive economic diversification, boost value-added production, and position Africa as a key player in global trade.”

Samaila Zubairu, President & CEO of AFC said: “I would like to thank the board and management for their unwavering support in our shared mission to transform African economies. Our journey towards capturing greater value within the continent, by converting raw materials into intermediate and finished goods, has already shown significant progress in three countries, with an expanding pipeline of projects in ten more. This success reinforces our commitment to further support and invest in this important initiative, including our latest equity investment of $143 million. We are also delighted to formally welcome Afreximbank-FEDA as a new shareholder, having previously supported us through debt financing. Their participation, alongside other prospective investors, is a testament to the strength and de-risked nature of our ecosystem value chain industrial platform. We look forward to continuing our partnership to drive industrialization and sustainable economic growth across Africa.”

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

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Sonangol to Lead Decarbonized Oil & Gas (O&G) Development, Says Angolan National Oil Company (NOC) Head

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2 hours ago

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October 4, 2024

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Sonangol

Participating in an on-stage interview at Angola Oil & Gas 2024, Sonangol CEO Sebastião Gaspar Martins emphasized that oil and gas remains a core focus for the national oil company

LUANDA, Angola, October 3, 2024/APO Group/ — 

Angola’s national oil company Sonangol reiterated its commitment to driving sustainable hydrocarbon development during the Angola Oil & Gas (AOG) conference this week. Speaking during an “In-Conversation with” session, Sonangol CEO Sebastião Gaspar Martins stated that the company will not abandon oil and gas, but rather advance decarbonized oil and gas development.

We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas

By investing in upstream oil and gas production while prioritizing low-carbon projects, Sonangol aims to boost national crude output, while diversifying and decarbonizing the industry. The NOC is focusing efforts on non-associated gas development, as well as alternative energy sources such as solar.

“We are looking at opportunities in the gas sector and have identified the right partner to develop non-associated gas. Gas produced from Angola LNG will be used for the production of fertilizer and we are evaluating the utilization of gas in the south of the country, linking gas with steel industries. We also have a blue carbon project, linked to the reduction of carbon through the plantation of mangroves. We have one area in Luanda and have identified four additional areas for this,” stated Gaspar Martins.

Sonangol has undergone transformation in recent years: following the creation of the National Oil, Gas & Biofuels Agency (ANPG) in 2019, Sonangol transferred its role as national concessionaire and regulator. This transformation has aimed to make Sonangol more competitive and strengthen its capacity as an upstream operator. Concurrently, the government is partially privatizing the NOC, with privatization set to be complete in 2026. This process will enhance financial capacity, allowing Sonangol to drive new upstream projects forward.

“The transformation of Sonangol started several years ago, when we passed the regulatory, concessionaire role to the ANPG. At the time, we transferred almost 600 employees to the ANPG. After that, Sonangol underwent a restructuring program where we created five core business units from 36 different entities – starting with exploration and production. We want to go public, but we want to do it properly. So, we are currently going through all the processes to do this,” stated Gaspar Martins.

Distributed by APO Group on behalf of Energy Capital & Power.

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Chevron to Increase Gas Supplies to Angola LNG

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2 hours ago

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October 4, 2024

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Chevron

Chevron announced plans to supply 600 million cubic feet of gas per day to the Angola LNG facility by year-end at the Angola Oil & Gas conference on Wednesday

LUANDA, Angola, October 3, 2024/APO Group/ — 

Energy supermajor Chevron will supply 600 million standard cubic feet of gas per day to the Angola LNG (ALNG) facility by the end of the year. This comes as the Sanha-Lean Gas Connection (SLGC) Project – developed by Chevron’s local subsidiary and set to deliver lean gas to the ALNG onshore plant – prepares for first production by Q4 2024. 

When you talk about energy security, [gas] is one of the key enablers

The announcement was made by Chevron’s Managing Director of the Southern Africa Strategic Business Unit Billy Lacobie during an “In Conversation with” session at the Angola Oil & Gas conference in Luanda on Wednesday.  

“It’s very exciting as you go forward and look at the immense opportunities when you go into gas,” said Lacobie. “When you talk about energy security, [gas] is one of the key enablers.”  

According to Lacobie, Chevron’s gas production increase will be driven by the installation and tie-in of the SLGC Project to the existing Sanha Condensate Complex, which features pipelines connecting Chevron-operated Blocks 0 and 14 to ALNG. 

Distributed by APO Group on behalf of Energy Capital & Power.

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Sonangol, Conjuncta, CWP, Gauff Sign Green Hydrogen Deal at Angola Oil & Gas (AOG) 2024

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2 hours ago

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October 4, 2024

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Sonangol

The preliminary agreement covers the development of the Barra do Dande Green Hydrogen Project

LUANDA, Angola, October 3, 2024/APO Group/ — 

Angola’s national oil company Sonangol signed an agreement with energy companies Conjuncta, CWP and Gauff for the development of the Barra do Dande green hydrogen project in Angola. Signed during the Angola Oil & Gas conference on Wednesday, the deal covers the design, licensing, financing, engineering and construction of the facility.  

Situated in the municipality of Barra do Dande, the green hydrogen project will produce up to 1,200 tons of ammonia for export to the European market. The facility will feature the installation of 600 MW of renewable energy capacity – generated from hydropower sources – as well as a 400kv substation and adequate water treatment.  

The deal was signed by Orlando da Mata, President of the Board of Directors of the Sonangol Research and Development Center; Vladimir Machado, President of the Executive Committee of the Sonangol Research and Development Center; Michael Scholey, CEO of CWP; Stefan Tavares Bollow, CEO of Gauff; and Julian Reichert on behalf of Conjuncta CEO Stefan Liebing.  

Distributed by APO Group on behalf of Energy Capital & Power.

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