Bloomberg: AFC joins Morocco-UK green power mega-project

Africa Finance Corporation (AFC), an African-owned investment bank for infrastructure projects, is set to join a group of companies developing the Xlinks Morocco-United Kingdom Power Project, reports Bloomberg.

Announced by AFC’s Chief Executive Officer, Samaila Zubairu stressed, “there has to be a clear understanding that Africa is no longer a charity or aid case.” This statement was made during an interview last week in Washington, where he participated in the International Monetary Fund’s Spring meetings.

Zubairu underscored Africa’s shift towards investment-driven solutions for achieving net-zero goals.

The first-of-its-kind project will connect solar and wind power from the Moroccan Sahara to the UK by 2030, delivering 10.5 gigawatts of clean energy. It will meet 8% of Britain’s electricity needs, powering over 7 million British homes.

AFC’s Chief Executive Officer also highlighted Africa’s potential to produce more than 110 gigawatts of wind energy, its vast untapped solar capacity, and 250 gigawatts of hydropower.

He emphasized the potential not only for electricity exports but also for employing these resources to boost Africa’s mineral-rich sectors, which are critical for the energy transformation, according to the same source.

Last week, Xlinks announced that the UK-Morocco power project experienced a significant surge in cost.

Xlinks First, the investment firm spearheading the Project, announced that “the project’s delivery cost has risen to £22-24 billion ($27-30 billion),” up from the previous estimate of around £20 billion.

It also mentioned that the projected strike price for the plan now ranges between £70-80 per megawatt-hour (MWh), based on 2012 pricing.

James Humfrey, CEO of Xlinks First, stated that the updated guidance for the strike price of the Morocco–UK Power Project aligns with current market trends and is influenced by macroeconomic factors.