The Africa Finance Corporation is investing $63m in a 60MW wind farm in the east African country of Djibouti.
AFC said it has made the strategic investment as lead developer together with Great Horn Investment Holdings in the project in the Ghoubet area, near Lake Assal.
Development of wind farm, which has a 25-year power purchase agreement with Electicite de Djibouti has, has been led since 2017 by the AFC.
The project also has an implementation agreement and with the government of Djibouti backed by a government guarantee, as well as MIGA guarantee cover.
The wind farm is expected to begin commercial operations in 2021.
As part of the investment, AFC chief investment officer Oliver Andrews and head of project development Amadou Wadda will join as nominee non-executive directors to the board of the project and the holding company Red Sea Power and Djibouti Wind.
The project will help the country transition towards 100%-renewable energy-based electricity production by 2030.
AFC president and chief executive Samaila Zubairu said: “We are delighted to have the opportunity to invest and develop such a significant renewable power project in Djibouti.
“We have invested in many renewable projects in Africa, including the Cabeolica Wind Farm in Cape Verde, which won recognition in the International Finance Corporation emerging partnerships top 10 private-public partnerships in Africa.
“We see renewable and green projects as a key part of our investment strategy as we look to support a sustainable future in Africa.”
Andrews said: “This is a significant project for Djibouti as its first renewable energy project and signifies the country’s efforts to establish its own energy production from its own resources.
“By taking this position on the board, I am delighted to be adding my expertise to the development of the project with my colleague Amadou Wadda.”