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EAAIF commits US$18.15mn to Ghana's 100MWp solar project

Energy

The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, has committed US$18.15mn in financing to Ghanaian conglomerate LMI Holdings

The funding, channelled through its subsidiaries Solar for Industries Ltd (SFI) and Enclave Power Company Ltd (EPCL), will support the construction and operation of a 100MWp ground-mounted solar photovoltaic (PV) plant in Dawa, Ghana.

The facility will provide lower-cost renewable electricity to more than 95 energy-intensive manufacturers operating in the Tema Free Zone and Dawa Industrial Zone.

The financing consists of US$15.65mn from EAAIF and US$2.5mn from Ninety One’s Africa Credit Opportunities strategy. SFI has been established as a special-purpose vehicle focused on solar generation, while EPCL serves as LMI Holdings’ principal operating utility. EPCL is Ghana’s first and only licensed private electricity distributor, offering an alternative to reliance on state off-takers and demonstrating a privately operated utility model for Africa’s energy transition.

The project’s first phase has a total cost of US$88.6mn. The International Finance Corporation (IFC) led the financing, contributing a direct loan of US$24.2mn and working with EAAIF, Ninety One and the World Bank’s International Development Association (IDA) to mobilise a further US$60.6mn in debt. LMI Holdings provided the remaining US$28mn through an equity investment.

During Phase 1, the 100MWp solar plant is forecast to produce 129.5 GWh of electricity annually. EPCL will transmit the generated power over approximately 40 kilometres of Ghana’s national grid under a Transmission Service Agreement (TSA), delivering electricity to more than 95 industrial customers in the Tema Free Zone and Dawa Industrial Zone.

The development is expected to advance industrial decarbonisation while supporting LMI Holdings’ backward integration strategy. By providing a more predictable and affordable electricity supply to manufacturers in Ghana’s key industrial hub, the project aims to reduce indirect greenhouse gas emissions and improve the environmental credentials and export competitiveness of businesses in sectors such as cocoa, cement and steel.

Exports represent approximately 35% of Ghana’s GDP, making reliable and competitively priced energy an important factor in sustaining the performance of export-oriented industries.

The project also contributes to Ghana’s Renewable Energy Master Plan, which targets a 10% share for renewables in the country's electricity generation mix by 2030. It is consistent with PIDG’s 2023–2030 Strategy, which focuses on expanding climate finance, transforming markets and mobilising private investment across emerging economies.

Martijn Proos, co-head of Emerging Market Alternative Credit, Ninety One, the fund manager of EAAIF, stated: “This transaction highlights EAAIF’s commitment to financing transition infrastructure that accelerates green growth and delivers affordable, reliable power to Ghana’s manufacturing heartland.”

Kojo Aduhene, founder, chairman, and CEO of LMI Holdings, said, “Following the success of our 16.8MWp Helios Solar rooftop project in Tema, we are privileged to be part of this structural evolution in Ghana’s power and energy sector by effectively demonstrating how private innovation can drive the nation’s sustainable economic development.”

Nathalie Kouassi Akon, IFC division director for West Africa Gulf of Guinea, said, “Ghana’s clean energy transition is also an investment in the country’s industrial growth and competitiveness. This solar project will help manufacturers lower electricity costs and reduce emissions strengthening their capacity to expand production, create jobs, and compete in regional and global markets ”

Western Cape advances a R1.165 billion road upgrade to improve Franschhoek Pass safety. (Image source: Western Cape Government)

Construction

The Western Cape Government is advancing a R1.165 billion (approx. US$12.25mn) road improvement and flood-recovery project along Franschhoek Pass, focusing on safer travel, improved regional connectivity and stronger infrastructure capable of withstanding extreme weather

Led by the Department of Infrastructure, the MR191 project includes road upgrades, resurfacing, drainage improvements and repairs to sections damaged by repeated flooding. Construction is expected to be completed in July 2027, subject to favourable conditions.

Franschhoek Pass is expected to reopen during the construction holiday, from mid-December to mid-January, with stop-and-go traffic controls in place. However, the reopening will depend on safety assessments, and the road will remain closed if conditions are considered unsafe.

Repeated flooding prompts major road repairs

Severe rainfall in October 2023 caused 16 slope failures and slips along Franschhoek Pass, leaving sections of the route damaged. Further heavy rainfall in May 2026 resulted in five additional slips and erosion at the Du Toits River bridge abutment on the Villiersdorp side.

The recurring damage has highlighted the challenges of maintaining transport links in areas exposed to extreme weather. The additional flood-recovery work has therefore been incorporated into the wider MR191 improvement programme, combining urgent repairs with measures intended to improve long-term road resilience.

Engineering measures target road safety and slope stability

The project covers several sections of the road network, with work focused on upgrading deteriorated surfaces, improving drainage and stabilising vulnerable slopes.

Approximately 9.57 km of MR191 between Old Paarl Road (MR189) and Helshoogte Road (MR172) is being widened and upgraded to a Class 1 road. Rehabilitation work also covers approximately 14 km between the Helshoogte intersection and the Franschhoek urban area, as well as approximately 16 km between Franschhoek and the Theewaterskloof Dam.

Construction activities include asphalt surfacing, pavement reconstruction, drainage upgrades and repairs to the Du Toits River bridge abutment. Specialist slope protection measures include soil nails, high-strength steel mesh, anchored gabion walls and reinforced concrete structures.

These engineering interventions are designed to address existing damage, improve road stability and reduce the risk of further deterioration during periods of heavy rainfall.

Road construction supports local employment and businesses

Beyond its transport benefits, the Franschhoek Pass project is creating opportunities for local workers, suppliers and emerging contractors.

The project has generated 94,090 person-days of local labour, exceeding its target of 70,160 person-days. A total of 357 work opportunities have been created against a target of 440, while 57 local enterprises have supplied goods and services, surpassing the target of 40.

Six emerging contractors have received subcontracting opportunities, meeting the project's target. Meanwhile, R141.15 million (approx. US$8.53mn) has been directed towards targeted enterprises, exceeding the planned allocation of R126.17 million.

These figures illustrate the wider economic contribution of infrastructure development, particularly through local procurement, employment and opportunities for smaller businesses to participate in major public works projects.

Minister Simmers emphasises on long-term infrastructure resilience. 

Minister Simmers highlighted the importance of strengthening transport infrastructure following repeated flood damage and ensuring that public investment delivers lasting benefits for communities and businesses.

“The damage caused by successive flooding events reminds us why investing in resilient infrastructure is so important.

“We are not simply repairing damaged roads. We are strengthening vital transport connections, improving road safety and investing in infrastructure that must serve our communities and economy for years to come.

“Equally important is the economic value created during construction. With more than 94,000 person-days of local labour and over R141 million directed towards targeted enterprises, this project demonstrates how infrastructure investment can support livelihoods and create opportunities for local businesses

“Our commitment remains to deliver infrastructure that is safer, more resilient and capable of supporting economic growth across the Western Cape.”

Franschhoek pass upgrade targets July 2027 completion

Work on the MR191 road improvement and flood-recovery programme will continue across the affected sections, with completion anticipated in July 2027, subject to construction conditions.

The planned holiday-period reopening will depend on whether the route can be operated safely under the required traffic controls. The Department of Infrastructure will prioritise road-user safety if weather conditions or other hazards prevent the safe passage of traffic.

Once completed, the project is expected to provide improved road conditions, stronger slope protection and better drainage, helping safeguard an important regional transport connection while supporting economic activity across the Western Cape.

RUSAL to invest in Ghana's mining sector (Image source: Adobe Stock)

Mining

Ghana’s mining industry is set for a major bauxite boost after RUSAL, one of the world’s largest aluminium producers, agreed to develop operations in the West African country

The Russian minerals giant has teamed up with the Ghana Integrated Aluminium Development Corporation (GIADEC) to develop bauxite mining operations with annual output of up to 5 million tonnes.

There are also plans to build an alumina refinery with an annual capacity of 1.2 million tonnes.“Our agreement with GIADEC marks an important step in implementing RUSAL’s strategy to strengthen its own raw material base,” said Evgeniy Nikitin, RUSAL’s general director, after the agreement was signed in Moscow during the Russia–Africa Forum.

“Ghana has some of the largest undeveloped bauxite reserves in West Africa, and we see an opportunity to establish an integrated production chain here – from mining 5 million tonnes of ore per year to producing 1.2 million tonnes of alumina.”

The mining project involves the construction and operation of a bauxite mine at the Nyinahin deposit in the Ashanti Region of southwestern Ghana.

Estimated mineral resources in the area of the deposit earmarked for development exceed 100 million tonnes of bauxite.

The second phase of the project envisages the construction and operation of an alumina refinery with an annual capacity of 1.2 million tonnes, using bauxite from the Nyinahin deposit.

The refinery will utilise natural gas, RUSAL reported.

Two joint ventures, Nyinahini Bauxite and Ghana Alumina Company, are to be established to coordinate the project, with RUSAL taking a majority stake in each.

RUSAL added that the joint ventures will be granted rights to explore for, mine and process bauxite in Ghana as part of the development of Ghana’s Integrated Aluminium Industry.

“RUSAL has been operating in Africa for more than 20 years, and this experience will enable us to implement the Ghanaian projects efficiently, from design through to reaching full production capacity,” added Nikitin.

The projects also envisage broad participation on the Ghanaian side.In addition to its equity stakes in the joint ventures, this will include job creation during construction and operations, the involvement of local contractors and suppliers, and the development of transport infrastructure in Ghana, to boost the local economy.

Reindorf Twumasi Ankrah, CEO of GIADEC, said the agreements fully align with its goal of establishing an integrated aluminium industry in Ghana that can process bauxite domestically.

“In RUSAL, a company with extensive technological expertise and many years of successful experience in Africa, we have found a partner capable of delivering on these objectives. The Nyinahin projects will bring investment, thousands of jobs, improvements to rail and port infrastructure, and new opportunities for Ghanaian businesses.”

Revitalising Africa's railways (Image source: Adobe Stock)

Logistics

Preferred bidders for the engineering, procurement and construction (EPC) contracts on the 830-kilometre Zambia Lobito Railway Project have been named

It follows a competitive international tender process by lead sponsor and developer, Africa Finance Corporation (AFC).

The consortium comprising Webuild S.p.A., Mota-Engil and IC İçtaş Construction has been selected as the preferred bidder for the Zambian section, while the consortium comprising Mota-Engil and Odebrecht Engineering and Construction has been selected as preferred bidder for the Angolan section of the project.

Preferred bidders:

Zambian section: Webuild S.p.A., Mota-Engil and IC İçtaş Construction

Angolan section: Mota-Engil and Odebrecht Engineering and Construction

AFC announced that contract negotiations will begin in November 2026, with the aim of concluding EPC agreements within eight to twelve weeks, subject to technical, commercial and legal negotiations.

Key infrastructure project 

The Zambia Lobito Railway Project is expected to unlock billions of dollars in economic value through new opportunities for trade and industrialisation along the corridor connecting Zambia to Angola's Atlantic coast, facilitating value addition to the region’s strategic minerals, including copper and cobalt, as well as agricultural products.

According to the AFC, by reducing logistics costs and improving access to global markets, the railway will strengthen regional integration and enable African economies to process their resources locally.

The project is being developed by AFC through the Trans African Rail Company FZCO (TARC), the holding company, and the project companies, Zambia Lobito Railway Limited and Zambia Lobito Railway S.A.

“Africa’s growing market needs infrastructure that connects our resources to production, our producers to consumers, and our people to opportunity,” said Samaila Zubairu, AFC’s president and CEO.

“The Zambia Lobito Railway will help build competitive battery mineral and agricultural value chains, anchoring new industrial cities and creating jobs along the corridor.”

Zubairu said the selection of the preferred EPC bidders brings the project closer to delivery.

“Working with our partners, we are building the foundations for African economies to produce more, trade more and retain more of the value they create.”

Project makes headway

The announcement follows significant progress since the signing of a memorandum of understanding in October 2023 involving the governments of Angola, Zambia, the USA and Italy, as well as the European Union and the African Development Bank.

Subsequent milestones include the completion of feasibility and technical studies, the signing of concession agreements in 2024 and intergovernmental agreements in 2025, and the completion of preliminary engineering designs.

The Lobito Corridor is a flagship project under Italy’s Mattei Plan for Africa, a government initiative to strengthen investment and economic partnerships with African countries.

It includes a €250mn financing facility from Italian development finance institution CDP, backed by Italian export credit agency SACE, to support Italian participation in infrastructure projects, including the railway.

AFC and its partners have also advanced the Environmental and Social Impact Assessments and Resettlement Action Plans, alongside preparations for the competitive EPC tender process.

Zubairu added that AFC remains committed to advancing this “transformative” infrastructure investment alongside its partners and mobilising capital to accelerate its implementation.

Africa can still thrive amid global geopolitical upheaval (Image source: Adobe Stock)

Finance

Africa has an opportunity to convert geopolitical tensions and shifting global trade patterns into a catalyst for industrialisation and long-term economic resilience, according to a new Afreximbank report

Leveraging Geopolitics for Trade and Industrialisation in Global Africa examines trade and economic developments across the continent and globally, and outlines strategies for African nations to benefit from supply chain realignments and changing geopolitical dynamics.

“Africa stands at a critical juncture,” said Dr Yemi Kale, group chief economist and managing director of research and trade intelligence at Afreximbank.

“Geopolitical tensions and economic fragmentation are reshaping global trade patterns, but they also present a historic opportunity for the continent. By strategically leveraging these shifts, Africa can build a more resilient, competitive and inclusive economic future.”

Despite a challenging global backdrop, the report highlights Africa’s strong recent economic performance.

While global economic growth slowed to 3.4% in 2025 and is projected to ease further to 3.1% in 2026, Africa’s real GDP growth accelerated from 3.4% in 2024 to 4.5% in 2025, outperforming the global average.

Africa’s merchandise trade also expanded by 6.1% to approximately US$1.5 trillion, while aggregate inflation fell significantly from 21.6% in 2024 to 13.1% in 2025.

According to Afreximbank, these gains reflect improved macroeconomic management, ongoing policy reforms and the role of development finance institutions in supporting economic stability.

However, the report warns that significant structural challenges remain.

Africa’s trade finance gap is estimated at approximately US$74bn in 2025, limiting the continent’s ability to fully capitalise on trade and industrial opportunities.

The situation is compounded by foreign exchange constraints and a continued decline in correspondent banking relationships.

The report also notes that evolving shipping routes and persistent disruptions in global logistics networks are increasing freight costs and extending delivery times, particularly for economies dependent on imported inputs and external markets.

To strengthen resilience, Afreximbank identifies accelerated implementation of the African Continental Free Trade Area (AfCFTA), expansion of the Pan-African Payment and Settlement System (PAPSS) and reforms to the global financial architecture as key priorities.

The report notes that stronger industrial ecosystems, increased intra-African trade and sustained financial support will be critical if the continent is to transform geopolitical disruption into sustainable and inclusive economic growth.

“It is imperative for the continent to act decisively to strengthen regional value chains, deepen industrial capacity, expand access to trade finance, and accelerate continental integration,” said Kale, adding that Africa “cannot afford to delay.”

Read more:

Supply chain boost for African businesses

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Prometal SA to boost Cameroon steel sector (Image source: Adobe Stock)

Manufacturing

Cameroon is stepping up efforts to expand domestic manufacturing and reduce reliance on imported industrial goods, with steel processing playing a growing role in the country’s industrialisation drive

Rising demand from the construction, infrastructure and agricultural sectors is creating opportunities to develop more local value chains and increase the production of finished goods.

It is against this backdrop that Prometal SA is expanding its steel processing capacity, backed by €40mn in fresh financing from Afreximbank.

The funding comes from an African Export-Import Bank (Afreximbank) revolving working capital facility and will support processing and transforming semi-processed steel into a range of finished steel products, including agricultural equipment and construction materials.

Hayssam El Jammal, Prometal SA’s CEO, said it marked a new stage for the company’s growth plans.Jammal said the growth strategy combines “vertical integration across the value chain from the processing of raw materials to the production of finished goods…[to the]…horizontal expansion into new markets with the clear ambition of producing in Africa goods that are still largely imported today.”

This, in turn, would strengthen African production capacity, reduce dependence on imports and retain greater value within the continent.

African industrialisation

Jammal said the deal also reflects Afreximbank’s commitment to turning African industrial ambitions into reality “further contributing to the broader industrialisation and economic transformation of our continent.”

The facility is expected to the production of a wide range of finished steel products, including agricultural equipment and construction materials.

It will also boost Prometal SA’s capacity to meet growing demand for steel and metal products across the construction, infrastructure, industrial and agricultural sectors within Cameroon.

“By identifying and capacitating African industrial champions, like Prometal SA, the Bank is strengthening Africa’s domestic manufacturing capacity and creating domestic and regional value chains,” said Dr. George Elombi, Afreximbank’s president and chairman.

Growth plans

Prometal SA is a leading metallurgical and industrial group with a growing industrial footprint.

Over recent years, it has already implemented various investments aimed at developing local manufacturing capacity and replacing the import of products previously sourced from international markets.

The group is organized around two principal business lines: Prometal Acier and NOVIA Industries.

Prometal Acier is the group's core steel and metallurgical business and a key player in the regional steel industry with operations across seven industrial plants and an aggregate annual production capacity of approximately 360,000 metric tons of finished steel products.

NOVIA Industries, established in 2018, is the group's expansion into the agribusiness sector and has rapidly developed into one of the leading players in its market segment.

It has an estimated production capacity of 500 tons per day of edible oil and 160 tons per day of soap, positioning it as a significant producer of refined palm-oil products and related by-products.

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