The investment is being made through his pan-African proprietary investment company Heirs Holdings – the single largest investor included in the White House statement announcing the Power Africa initiative.
Power Africa is a multi-stakeholder partnership among the United States, the governments of Ghana, Tanzania, Kenya, Liberia, Nigeria and Ethiopia, and the African private sector, with the shared objective of accelerating investment in Africa’s power sector over the next five years.
The initiative was launched in South Africa during Obama’s town hall at the University of Cape Town.
Earlier this year, Elumelu’s holding company, through its investee company, Transnational Corporation of Nigeria (Transcorp), purchased the Ughelli power plant, one of Nigeria’s largest power assets, which it plans to restore to its full generating capacity of 1,000 megawatts.
“The investment we are making demonstrates our intent to become a significant player in the power sector. It also shows in a clear and meaningful way that African capital can and should be part of the solution to Africa’s challenges. We need more African companies to step up and get involved in Africa’s development.”
Elumelu, who is Chairman of Heirs Holdings, went on to say: “Heirs Holdings’ investment in Power Africa is not just about creating value for shareholders. We want to conduct business in this strategic sector for the long term, in a way that links economic return to social benefits – a key component of what I call Africapitalism. Access to affordable, uninterrupted power will have an immeasurable impact on the economic ecosystem. The cost of doing business will come down, entrepreneurs will expand and innovate, and jobs will be created as a result. That is a very tangible example of what Africapitalism is about: the private sector creating economic prosperity and social wealth.”