Africa Finance Corporation (AFC), Climate Fund Managers (CFM),FMO, the Dutch entrepreneurial development bank and Great Horn Investment Holdings (GHIH) announced a landmark investment for the construction and operation of a 60MW wind farm in the Ghoubet area, near Lake Assal in Djibouti. Djibouti is a country with expanding energy needs, located in the Horn of Africa and spanning over 23,000 km2.The country is dependent on domestic thermal power production and imports from Ethiopia for its electricity consumption and is in need of domestic renewable energy capacity addition. Djibouti’s electricity demand is expected to considerably increase due to various large-scale infrastructure projects including ports, free trade zones and railways that the government has undertaken. The country aims to transition towards 100% renewable energy-based electricity production and reduce its emissions by 40%by 2030.
A joint investment development of the 60MW wind project kicked-off in 2017 by AFC, CFM, as manager to Climate Investor One’s (CIO) Construction Equity Fund, FMO and local developer Great Horn Investment Holdings (GHIH). Institutional expertise of individual Consortium members played a defining role in the Project’s development. AFC, being an experienced developer and financier of infrastructure and renewable energy projects, took the lead developer and project manager role.