CEC secures US$145M investment from Affirma, Norfund, and KLP for capacity expansion

ZAMBIA – Copperbelt Energy Corporation (CEC), an independent power producer and transmission entity based in Zambia, has successfully secured a substantial investment of US$145 million from Affirma Capital, Norfund, and Kommunal Landspensjonskasse (KLP) to amplify its renewable energy capacity.

This injection of capital aims to bolster CEC’s prominent role in Africa’s decarbonization efforts. It aspires to expand renewable energy capabilities, extend electricity access in Zambia and the Democratic Republic of Congo (DRC), and actively participate in the liberalization and transformation of the electricity market in Southern Africa, state the involved companies.

CEC’s primary operations encompass power distribution to a majority of mines in Zambia’s Copperbelt province and the adjacent Katanga province in the DRC.

Additionally, it undertakes power transmission for Zambia’s utility Zesco and engages in the trading of electricity from various public and independent electricity generation entities within the Southern African Development Community as a part of the Southern African Power Pool.

Furthermore, CEC is deeply invested in renewable energy, presently operating a 34 MW solar plant with another 60 MW plant set for commissioning this month.

Affirma Capital, Norfund, and KLP, through this collaboration, envision an expansion of CEC’s investments in transmission infrastructure and renewable energy in the forthcoming years, underscoring their collective ambitions.

Affirma Capital’s involvement with CEC dates back to 2014, initially entering through a structured equity investment supporting the company’s major shareholder. By March 2018, this investment transitioned into a 34.64% ownership stake in CEC.

In addition, Affirma regards CEC as one of its most successful investments, emphasizing its sustained commitment to the company over the years, showcasing a steadfast, enduring relationship.

Ronald Tamale, the Founding Partner and Sub-Saharan Africa Head at Affirma Capital, expresses enthusiasm for partnering with Norfund and KLP in fortifying CEC’s growth trajectory in the energy sector across Africa.

He envisions the collaboration as a testament to how private equity firms, in conjunction with like-minded investors, can serve as long-term stewards of African businesses.

Since its initial investment, Affirma Capital has spearheaded numerous strategic initiatives aimed at fortifying CEC.

These efforts include substantial capital deployment into solar projects, instating an adept local management team, and implementing top-tier governance systems.

These actions have fostered systematic decision-making and strategic development, propelling growth in a challenging macroeconomic landscape, highlights Tamale.

From 2014 to 2023, CEC showcased robust financial performance, generating approximately US$600 million in cash, disbursing US$285 million in dividends, substantially reducing debt by about US$120 million, and concurrently investing significantly in critical infrastructure projects such as the two solar plants and expanding its infrastructure to reach new clientele, Tamale underscores.

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