Target Information

On April 23, 2025, during the state visit of French President Emmanuel Macron, an agreement was signed by Béatrice Buffon, Executive Director and CEO of EDF Renewables, alongside Amine Hiridjee, Co-CEO of AXIAN Group, and Demba Diallo, Africa50 Development Director. This agreement pertains to the development, construction, and operation of the Volobe hydroelectric dam in Madagascar, which will have a capacity of 120MW.

The Volobe dam is strategically located in Tamatave, in the northeastern region of Madagascar, and is deemed a priority infrastructure project by the Malagasy government. The dam is expected to produce approximately 750GWh of electricity annually, equating to about one-third of the country's current electricity output. This project aims to enhance Madagascar's electricity supply while contributing to the decarbonization of its energy mix.

Industry Overview in Madagascar

The energy sector in Madagascar has historically faced challenges due to inadequate infrastructure and limited access to electricity, affecting both economic development and quality of life for its citizens. The country’s energy supply mainly relies on fossil fuels, leading to environmental concerns and a commitment to transition towards more sustainable energy sources.

In recent years, the Malagasy government has placed increased emphasis on expanding renewable energy capacity to meet the growing energy demand and reduce reliance on non-renewable resources. Various projects aimed at enhancing hydroelectric power generation have been prioritized, reflecting a regional shift towards sustainable energy solutions in Africa.

International partnerships and funding from global organizations have been vital in advancing these renewable energy initiatives. Support from entities like the World Bank has bolstered financing and infrastructure development efforts, allowing for ambitious projects such as the Volobe dam to materialize.

As the demand for electricity rises, there is a pressing need for competitive and reliable energy sources. The Volobe project aligns with national objectives to increase energy production capacity while also ensuring sustainable practices in the energy sector, paving the way for a more resilient and environmentally friendly electrical grid.

Rationale Behind the Deal

The EDF-led consortium's investment in the Volobe dam is fundamentally aimed at addressing the critical electricity supply shortfall in Madagascar. With a significant portion of the population currently lacking reliable power access, the project presents an opportunity to support economic growth and enhance the quality of life for millions.

Moreover, the collaboration between EDF, AXIAN Group, and Africa50 represents a strategic alignment of expertise and resources to execute complex projects in challenging environments. By leveraging experience and capital, this partnership aims to establish a sustainable energy source that can adapt to Madagascar’s socio-economic conditions.

Information About the Investor

EDF, a leading player in the global energy market with a focus on renewable energy, brings over 70 years of experience in the development and management of hydroelectric facilities. With its extensive expertise, EDF is well-equipped to oversee the technical management of the Volobe project throughout its lifecycle, from initial feasibility studies to operational phases.

AXIAN Group, specializing in various sectors including energy and telecommunications across Africa, provides valuable insights into local market dynamics, which is essential for executing projects within the specific context of Madagascar. Africa50, as an investment arm committed to infrastructure development in Africa, plays a crucial role in mobilizing capital and ensuring sustainable growth in the region’s energy sector.

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The signing of the agreement for the Volobe hydroelectric project presents a strong investment opportunity both for the involved parties and Madagascar as a whole. By focusing on renewable energy, the consortium is addressing an urgent need for sustainable infrastructure that aligns with global climate goals.

Additionally, EDF's extensive experience in hydroelectric projects enhances the likelihood of successfully executing the project under stringent environmental standards. This commitment not only supports energy transition efforts but also fosters broader economic development within Madagascar.

The collaboration with local and regional partners, such as AXIAN and Africa50, further strengthens the investment's impact. Their intimate understanding of local markets and operational landscapes will facilitate the project's alignment with national energy strategies, increasing its chances of long-term success.

In conclusion, the Volobe project can be viewed as a significant step towards stabilizing Madagascar's energy supply, championing renewable energy, and enhancing the resilience of the country’s power infrastructure. As such, this initiative is not only a valuable investment opportunity but also a vital contribution to the sustainability agenda for Madagascar.

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