AXA Group through AXA’s Real Estate division, has taken a 18.6% stake in the Eranove Group, a West African utility company with operations in power generation, transmission and distribution, from the Bouygues Group.

Laurent Clamagirand, CIO of AXA, said: “The combined factors of a severe shortage of power generation capacity in Africa and high rates of GDP and population growth give Eranove a significant opportunity to build a leading energy platform across the continent.”

“Eranove is already a successful and well established business, with strong management and a large customer base. Our long-term investment and commitment to Africa will support the growth of Eranove as well as positively impact the countries it serves”,” he added.

Emerging Capital Partners (ECP), which holds a 55.9% stake in Eranove via its ECP Africa Fund II, has welcomed AXA as new shareholder.

Vincent Le Guennou, Co-CEO of ECP and Chairman of the Board of Eranove, said: “Having a top-flight investor like AXA Real Estate on board is great news for Eranove and a great pleasure for ECP.”

Formerly known as Finagestion, the Eranove Group was created when Bouygues combined the African assets of its subsidiary SAUR into a single company.

ECP first bought into Eranove’s capital in 2008 and acquired a majority holding a year later.

Eranove currently accounts for almost 70% of installed electricity generating capacity in the Ivory Coast, supplying 1,136 MW via two of its subsidiaries, Compagnie Ivoirienne d’électricité (CIE) and Compagnie Ivoirienne de production d’électricité (CIPREL).

CIE operates six hydroelectric and a thermic power station and also manages the transport and distribution network. CIPREL operates one of the country’s most important thermal power stations, where the company is currently completing its expansion through one of the largest infrastructure investments in recent years in the Ivory Coast (EUR 343.6 million).

Phase one (111 MW gas turbine) opened in January 2014, while phase two (111 MW steam turbine) should start operation at the end of 2015.

Eranove is also represented in the water sector through Société de distribution d’eau de la Côte d’Ivoire (SODECI) and Sénégalaise des Eaux (SDE), which are by way of delegation of public service, the leading African players in producing and distributing drinking water and sanitation.

Eranove has also focused on expanding across Africa in recent years, winning a technical support contract from Régideso in the Democratic Republic of Congo in 2012 and in June 2015, signing a contract to design, build and operate the hydroelectric power station at Kenié with the government of Mali, through their subsidiary Kenié Energie Renouvable.

Although investment in Eranove is the first move into Africa by AXA Real Estate, Pierre Vaquier, CEO, said that AXA's real estate and infrastructure division is already a diverse investor, which now has operations in 24 countries and investments across direct property and infrastructure.

“Our investment in Eranove is another milestone in terms of widening the global expansion of our real asset investments as we take a holistic approach to assets and industries to deliver long-term growth on behalf of our clients,” he said.