ECP Power & Water Holding becomes a shareholder in Eranove group after US$250m investment

COTE D’IVIOREECP Power & Water Holding has become a shareholder in the Eranove group after a US$250 million investment, whose numerous subsidiaries based in several African countries produce and distribute water and electricity.

ECP Power and Water Holding, will prioritise clean energy investments and help Eranove increase its supply of electricity and clean water to millions.

The new shareholder is a joint venture between several investment companies active on the African continent.

ECP Power and Water Holding is a company formed by fund managers Emerging Capital Partners (ECP), A.P. Moller Capital and two development institutions.

Other funds manager that are included are the Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the subsidiary of the KfW Group, the German development agency.

ECP Power & Water Holding is also supported by Investment Fund for Developing Countries (IFU-Denmark), a Danish development finance institution dedicated to private sector investments in developing countries.             

“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,” said 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.

“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.”

“This investment in Eranove fits well with our strategy for The Africa Infrastructure Fund.”

Jens Thomassen – Partner, A.P. Moller Capital

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 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.

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).

“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.

In electricity generation, the group has two baseload power plants under construction and a strong pipeline 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.

“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 supports the green transition and enables people and businesses to prosper,” said Torben Huss, CEO of IFU.

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