BPC�s power import deal blocked

Knitted together by local private equity firm, Capital Management Africa (CMA), the deal involved advancement of a $300 million debt facility to cash strapped Zimbabwe Power Company (ZPC) at ‘punitive’ interest rates of up to 20% using funds predominantly sourced from Botswana Public Officers Pension Fund (BPOPF).

The $300 million multi-faceted financing deal, which the local fund manager reportedly crafted with the patronage of influential political figures in both countries, was part of a proposed power purchasing agreement (PPA) where Botswana Power Corporation (BPC) was to import 100MW electricity from ZPC. While it is not clear how CMA was going to raise the whole  $300 million (P3.1 billion), the fund managers, who sealed a P500 million private equity deal with BPOPF in late 2014, have already approached the pension fund with a proposal. BPOPF CEO, Boitumelo Molefe confirmed to BusinessWeek they have been approached by CMA with a proposal to finance the Zimbabwe deal.