The African Development Bank (AfDB) has approved a $50m investment in CEC Africa (CECA) Investments, a multinational power company headquartered in Nigeria and Zambia.

AfDB President, Donald Kaberuka, said: “By supporting an indigenous power developer (CECA), the Bank is helping create a pool of pan-African investors besides assisting in mobilizing the necessary capital to increase access to energy in Africa."

CECA represents AfDB’s first equity investment into a power company with interests across Africa.

The investment has been structured as part direct equity and part convertible debt.

CEC Africa (CECA) seeks to acquire and develop distribution and transmission assets and complementary greenfield generation projects throughout Sub-Saharan Africa.

By investing across the energy value chain (generation, transmission, and distribution), CECA aims to reduce electricity losses while improving the overall economics in Africa’s power sector.

CECA has invested in two operating companies in Nigeria: Abuja Electricity Distribution Company and North South Power, which holds a 30-year concession on the 600 MW Shiroro Hydro Power Plant, both acquired during the recent Nigerian Power Sector Privatization Program.

In addition, CECA has a number of greenfield power projects under active development in Southern and Western Africa, as well as a reserve pipeline spanning Eastern and Central Africa.

Through these investments, CECA aims to become one of Africa’s leading power utilities, thereby catalyzing additional private sector participation in its energy markets.

To deliver on its growth strategy, CECA is targeting a capitalization of $500m within the next three to five years.

Thus far, CECA has been capitalized with assets in excess of $100m by CEC, a publicly-traded private utility with a 50-year history in Zambia and the DRC and a consistent track record of profitability.

A number of other investors have already been identified by CECA and it is expected that a first closing of $150m will be reached by third quarter of 2015.

Through its investment, the African Development Bank is acting as anchor investor and strategic partner, helping to shape CECA’s policies and strategies, while catalyzing additional private sector funding into Africa’s power sector.

The operation is aligned with the Bank’s 10-years strategy, as it promotes: infrastructure development, regional economic integration, private sector development, governance and accountability, as well as skills and technology development.