Mercuria & Exergy Energy sign $250 million investment deal to accelerate African power projects
Exergy, an Africa-focused integrated energy investor, and Mercuria, a global energy and commodities group, signed a US$250 million financing deal in Lusaka. Subject to regulatory approvals, the funds will finance generation and transmission projects by two Exergy subsidiaries, Lunzua Power Company and Lusitu Transmission and Distribution Company, several of which are already underway. Exergy trades in the Southern African power market and is developing a transmission highway linking Zambia to the East African power market.
Why it matters: The agreement is an instance of the briefing's energy theme, in which private capital is committed to generation and transmission capacity in a region where supply constraints affect mining, agriculture and manufacturing.