Africa Finance Corp. (AFC) has announced a $63 million strategic investment to construct and operate a 60-megawatt wind project in the Ghoubet area of Djibouti, a country in East Africa.
AFC made the investment as lead developer together with Great Horn Investment Holdings (GHIH), inviting further investment from Climate Fund Managers (CFM), and FMO, the Dutch entrepreneurial development bank.
AFC has led the development of the project since 2017, developing it from concept to bankability, securing a 25-year take or pay power purchase agreement with Électicité de Djibouti as the off-taker, an implementation agreement and with the Government of Djibouti backed by a government guarantee. The wind project is expected to begin commercial operations in 2021.
Currently, Djibouti’s power sector faces significant challenges, with less than 100 megawatts reliably available for the population. Its electricity demand is also expected to considerably increase due to var