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Take a look at some of AFC’s exemplary exits from infrastructure assets that showcase our ability to derisk investments and attract international 3rd party capital
In 2019, AFC committed to invest up to US$138 million in equity and debt for the Takoradi Port Expansion Project. The project, which is approaching the operational phase, reduces the cost of imports and exports to and from the western and central regions of Ghana and neighboring landlocked countries by modernizing a container and multipurpose terminal under a 25-year concession for its design, engineering, financing, and construction. In June 2023, the project construction was completed at 98%.
In August 2023, AFC strategically decided to exit its 35% equity stake to Yilport Holding, a global port operator with ambitions to transform Takoradi into a key logistics and trading hub in Africa. This transaction presents multiple advantages on both sides. For the seller (AFC), it allows to reduce the equity exposure to the asset at an attractive price while demonstrating its ability to de-risk, exit an asset and recycle capital. For the buyer (Yilport), the transaction provides a strategic gateway for them to establish their presence in the African market and leverage the port's potential for economic activities in the region. AFC has decided to remain in the asset through its debt instruments with the risk having significantly reduced due to near completion of the port’s construction and a renowned port operator acquiring a majority stake of the asset.
AFC chose to exit the equity having found a strategic partner for the project and having effectively de-risked the asset. Another rationale behind AFC's equity sale to Yilport revolves around showing its ability to effectively diversify the risk profile of its investments while paving the way for future partnerships with Yilport, not only in the ports sector.
The Cabeólica Wind Farm project stands as a pioneering milestone in Cape Verde and Sub-Saharan Africa, marking the region's inaugural privately financed wind farm. Operational since 2012, the project strategically positioned 30 wind turbines across four islands, producing around 26 MW of clean energy. This substantial output significantly contributed to Cape Verde's endeavor to diminish its dependence on costly imported fossil fuels. AFC played a pivotal role alongside key stakeholders, overseeing the project's development, construction, and subsequent operational achievements.
In 2020 AFC made a partial exit of its equity investment by selling 44% of its 94% stake in the project via a trade sale to A.P. Moller Capital, a notable investment fund manager dedicated to sustainable infrastructure in Africa. Despite the sale, AFC remains the majority shareholder with a 50% stake, while the Cape Verdean government and state-owned electricity company Electra own 6% of the venture.
The rationale behind this divestiture was to recycle capital reduce AFC’s overall concentration in the asset and ensure strong governance while opening doors for potential collaborations with A.P. Moller. The project's successful eleven-year operation, stable cash flows, and robust governance structure under AFC's guidance have made it an attractive asset for sale while providing potential avenues for growth and optimization.
MainOne is a broadband infrastructure company providing innovative telecoms services and network solutions across West Africa. Since its launch, MainOne has developed a reputation for providing highly reliable services to major telecom operators, ISPs, government agencies, small to large enterprises, and educational institutions in West Africa. MainOne also owns a data centre subsidiary, MDXi which builds and operates Tier III data centres across West Africa.
AFC acquired 22.9% of MainOne in 2008 through an equity investment that positioned the corporation as one of the major investors in the company. Other investors included MainStreet Technologies (Promoters), PAIDF, FBN Capital, and Skye Bank. In Q1 2022, AFC and other shareholders completed their sale of a 100% stake in MainOne to Equinix Inc. Equinix is the global leader in digital infrastructure with over 237 data centers. It chose to enter the African market through MainOne as a trusted partner to pursue the growing mobile broadband data adoption and greater connectivity opportunities.
The acquisition by Equinix, Inc. not only underscores MainOne and its shareholders’ substantial role in enhancing digital connectivity in West Africa but also opens doors for amplified growth and advancement in digital infrastructure in West Africa. It represents a testament to the impactful role MainOne played in improving regional connectivity and fostering technological advancement, while also indicating the potential for continued innovation and expansion in the ever-evolving digital ecosystem of the region.