Abu Dhabi-based energy investor ePointZero has agreed to acquire a 90% stake in Azura Power from private equity firm Actis and pan-African infrastructure investor Africa50, in a deal that marks its entry into African power generation.
The transaction will leave the remaining 10% of Azura Power with Amaya Capital, the principal investment firm founded and primarily owned by Nigerian investors Phillip Ihenacho and Sundeep Bahanda.
ePointZero, a subsidiary of UAE-based 2PointZero Group, announced the agreement on Monday. The transaction effectively sees the investor buy out Actis and Africa50, which joined Amaya as co-investors after Ihenacho founded Azura Power in 2010.
The acquisition gives ePointZero control of a power generation platform operating 752 megawatts across three African countries: Nigeria, Senegal and Mozambique.
From Lagos and Yale to African Power
Ihenacho, who chaired Azura Power was born in Lagos and raised in Jos, Plateau State, he earned a bachelor’s degree from Yale University in 1987 before obtaining a law degree from Harvard University in 1990.
He subsequently spent five years at McKinsey & Company, working across New York, London, Stockholm and Johannesburg before moving into investment and infrastructure.
Ihenacho also served as interim chief executive of Seven Energy, the Nigerian gas infrastructure company backed by Amaya Capital, until 2016. He previously chaired the investment committee of the Aureos West Africa Fund, a private equity vehicle focused on small and medium-sized businesses in West Africa, and holds an investment in a Kenyan beverage manufacturer.
Azura-Edo: Nigeria’s Landmark Private Power Project
Azura’s flagship asset is the 461-megawatt Azura-Edo power plant near Benin City in Edo State. The project was developed from a greenfield site into an open-cycle gas-fired power plant and reached financial close in January 2015 at a cost of $876 million.
It was the first Nigerian power project to use the World Bank’s Partial Risk Guarantee structure, designed to provide lenders with protection against risks associated with the Nigerian electricity market, particularly concerns around the ability of the state-owned utility to meet its payment obligations. American Capital Energy and Infrastructure also invested in the project in December 2013.
Azura has since expanded beyond Nigeria and now operates 752MW across three plants in some of Africa’s major gas-producing and power markets.
Azura-Edo contributes 461MW in Nigeria, while the 116MW Tobene power plant operates in Senegal and the 175MW Central Térmica de Ressano Garcia (CTRG) plant operates in Mozambique.
The plants operate under long-term power purchase agreements with national utilities. Such contracts provide relatively predictable revenue streams and have helped make the platform attractive to long-term infrastructure investors.
ePointZero’s First African Power Generation Investment
For ePointZero, the transaction represents its first investment in African power generation with Mohamed Hesham, chief executive of ePointZero noting Azura provides the group with critical operating assets, an experienced management team and exposure to markets with substantial long-term electricity requirements.
The acquisition also fits with 2PointZero’s existing investment relationship with Elsewedy Electric, the Egyptian engineering and construction company.
Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, chairman of 2PointZero, described the transaction as an example of long-term capital being deployed into infrastructure needed to support economic growth across African markets.
Dave Peacock, chief executive of Azura Power, described the transaction as a significant milestone for the company and thanked its shareholders for supporting the business through a decade of development.
Africa’s Electricity Gap
The acquisition comes as investors increasingly target Africa’s large electricity infrastructure deficit. Electricity demand across Africa is expected to nearly double by 2040, while electricity access in sub-Saharan Africa remains around 55%, according to the World Bank.
For ePointZero, Azura offers exposure to this structural demand through existing, operational power plants rather than greenfield projects alone while for Azura, the transaction brings a new controlling shareholder with access to substantial capital and an investment portfolio spanning energy and infrastructure.
The deal therefore marks a new phase for the power company founded in 2010, transforming Azura from a Nigerian power development story into a pan-African generation platform now controlled by a UAE-based investment group.
