Africa Finance Corporation (AFC) has completed the purchase of InfraCo Africa's stake in Cabeólica, a Cape Verdean wind independent power producer.

The deal follows the share purchase agreement signed on May 6, 2015 in which AFC agreed to purchase InfraCo Africa's remaining stake in the project.

Andrew Alli, President & CEO of Africa Finance Corporation said: “The additional share purchase will allow further expansion and other uses of wind energy in Cape Verde.”

“We are very proud of our growing work in addressing Cape Verde's energy needs though sustainable measures, all the while seeking a competitive return on investment for our shareholders,” he said.

This sale enables InfraCo Africa to recoup the early-stage development costs it had invested into Cabeólica and recycle these funds into developing future sub-Saharan infrastructure projects.

Brian Count, Chairman, InfraCo Africa, said: “The sale of InfraCo Africa’s remaining stake in Cabeólica is the culmination of many years of hard work by our team and the Government of Cape Verde. We are pleased to be working with AFC once again and hope to replicate the success of this project by re-investing the sales proceeds into developing more infrastructure projects in sub-Saharan Africa.”

Cabeólica is the first privately-financed sustainable wind farm on a commercial scale in sub-Saharan Africa.

Operating across four of Cape Verde's islands (Boa Vista, Sao Vincente, Sal and Santiago) and consisting of over 30 wind turbines, it has a total installed capacity of 25.5MW, equivalent to around 20% of Cape Verde's energy needs.

Working jointly with the Government of Cape Verde (GoCV) and Electra S.A.R.L (the national utility), InfraCo Africa provided the initial funding and expertise required to develop a sustainable, commercially viable wind farm.

In 2010 AFC and FinnFund also purchased equity in Cabeólica.

Together the parties addressed the complex legal and regulatory issues associated with pioneering commercial-scale wind farms and the technical issues inherent to establishing a wind farm across multiple dispersed islands each with an isolated grid and limited renewables capacity.

Loans from the African Development Bank and European Investment Bank raised the financing required to commence construction in December 2010 with the company becoming fully operational in 2012.

To date, Cabeólica has generated over 300,000 MWh of clean wind power.

The project has transformed Cape Verde's access to electricity.

Prior to becoming operational, the islands suffered from chronic power shortages and were heavily dependent on imported oil, with only 2% of the country's energy needs being sourced from wind power.

"We are very excited to take a larger part in this ground-breaking project. Cabeólica provides access to electricity for 360,000 people, which is about 72% of the Cape Verde population,” said Alli.

“The project is staffed entirely by skilled Cape Verdean employees and with sustainability at its core; it has avoided an estimated 55,000 tons of carbon emissions a year and averted the need to import 15 million liters of diesel a year,” he added.