Emerging Capital Partners, DEG, IFU and A.P. Moller Capital join forces to invest in Eranove

05 Aug 2021

The pan-African fund manager Emerging Capital Partners (ECP), a leading private equity player on the continent, A.P. Moller Capital, a fund manager specialized in the infrastructure sector and developing markets, DEG, the German Development Finance Institution dedicated to the private sector, and Investment Fund for Developing Countries (IFU- Denmark), the Danish Development Finance Institution for private sector investments in developing countries, have announced the creation of a new company called “ECP Power & Water Holding” that will invest in the industrial group Eranove.

ECP Power & Water Holding becomes the reference shareholder of the pan-African industrial group Eranove, a major player in the management of public services and the production of electricity and drinking water, in which Emerging Capital Partners (ECP) has been the largest shareholder since 2008. This will help place the Eranove Group on a long-term path to increase its supply of electricity and clean water to millions of people in Africa. The new company will put a priority on clean energy investments as Eranove underscores its commitments to the Green Transition and promoting sustainable and responsible development throughout Africa.

“This strategic partnership constitutes a key focus for ECP, which has established its position as a long-term investor in the water and electricity sectors on the continent. It is also a growth lever to finance the long-term development of the Eranove Group continuing and further expanding Eranove’s strong focus on sustainable and responsible development,” explains Vincent le Guennou, Co-CEO of ECP and Chairman of the Board of Directors of the Eranove Group and Chairman of the Board of Directors of ECP Power & Water Holding.

The Eranove Group has been present in Côte d’Ivoire for several decades (SODECI, CIE, CIPREL, Awale, Smart Energy), in Senegal (SDE) since 1996. With a turnover of 615 million euros, 306 million cubic meters of drinking water produced, an operated electricity production capacity of 1,250 MW, the Eranove Group employs more than 7,800 people, whose skills and know-how it catalyzes to serve 2.9 million customers for electricity and 1.4 million for water (as of 2020). In electricity generation, the group has two baseload power plants under construction and a strong pipeline of renewable energy projects – hydroelectric and solar – across Africa. Eranove will further strengthen its commitment to social, societal and environmental responsibility, and to develop projects to meet the growing demand for electricity on the continent, as well as to reduce the carbon footprint of its existing subsidiaries, which has already been reduced by 25% per kWh produced since 2015.

“This investment in Eranove fits well with our strategy for The Africa Infrastructure Fund, namely, to support sustainable development on the African continent. Supplying reliable and cost-effective energy with low carbon emissions, for corporations and households is a necessity for further development in the continent,” concludes Jens Thomassen, partner at A.P. Moller Capital.

“Our investment in Eranove Group is a unique opportunity to support a socially responsible and sustainably profitable institution that will continue to have significant positive socio-economic development impacts in Africa,” explains Mackenzie Schow, Deputy Head of Equity Africa for DEG.

“We are very pleased with our investment in Eranove because the company has the potential to become a major supplier and distributor of energy and water in Africa, delivering sustainable services that support the green transition and enables people and businesses to prosper,” said Torben Huss, CEO of IFU.

-ENDS-

About Emerging Capital Partners (ECP)

ECP draws on more than 20 years of private equity investing experience in Africa and has completed more than 70 transactions and nearly 60 full exits. It has raised over US$3.2 billion in growth capital through funds and co-investments. ECP seeks to identify opportunities that will benefit from the fundamental, long-term structural demographic and economic shifts driving Africa’s growth. ECP works closely with investees to implement best practices and strengthen business leadership. It has an on-the-ground team covering Africa’s major hub economies and a frontline presence that contributes to deep market insight and unique opportunities.

To know more about ECP: www.ecpinvestments.com

About A.P. Moller Capital

A.P. Moller Capital P/S, founded in 2017 and regulated by the Danish Financial Supervision Authority, is an affiliate of A.P. Moller Holding and was established to manage stand-alone alternative investment funds focusing on infrastructure in growth markets. A.P. Moller Capital launched its first fund, The Africa Infrastructure Fund, in August 2017 to invest in infrastructure assets on the African continent with a focus on energy and transportation.

For further details see www.apmollercapital.com

About DEG:

For almost 60 years DEG has been a reliable partner to private-sector enterprises operating in developing and emerging-market countries. We provide our customers with tailor-made solutions, including financing, promotional programmes and advice tailored to individual needs. They can thus develop successfully and sustainably, while generating local added value and creating qualified jobs. With our portfolio of around EUR 9 billion in approximately 80 countries we’re one of the world’s largest private-sector development financiers.

Learn more: http://www.deginvest.de/

About IFU

IFU – the Investment Fund for Developing Countries is a Danish impact investor contributing to green, just and inclusive societies as well as supporting the Sustainable Development Goals. We provide risk capital to companies operating in developing countries across Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity, loans and guarantees. IFU is fund manager of the Danish SDG Investments Fund on whose behalf the investment in Eranove is made. IFU has co-invested in over 1,300 companies in more than 100 developing countries and emerging markets. Contracted investments total EUR 31 billion, of which IFU has contributed EUR 3.4 billion. Capital under management is EUR 1.7 billion.

Read more at http://www.ifu.dk/

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