The announcement was made during Africa50’s General Shareholders Meeting in Antananarivo on 20 September.

The Volobe project, a run-of-the-river hydroelectric power plant located on the Ivondro River, is expected to increase Madagascar’s electricity generation capacity by approximately 20%. The island nation’s estimated hydroelectric potential is vast, at approximately 7.8 gigawatts (GW) and with over 800 high-potential sites.

Once operational, Volobe will supply stable and affordable power to millions in the cities of Antananarivo and Tamatave through a 270-km transmission line currently under construction. It will be located on the Ivondro River, approximately 30 kilometres from Toamasina, the second-largest city in Madagascar.

Christopher Walker, DFC Deputy Vice President of the Office of Development Policy, spoke on the generational implications of this investment. He said, “Investments in energy provide people and businesses with reliable and secure sources of electricity to drive development, promote economic growth, and advance job creation.”

The project is managed by the Compagnie Générale Hydroélectrique de Volobe (CGHV) with Axian and Africa50 as shareholders. 

Remy Huber, CEO of CGHV, said, “The Volobe project is advancing with all stakeholders and sponsors working towards completion. This determination is reflected in the agreement with DFC, which marks a crucial step towards financial closure, expected in 2025.”

The development is anticipated to generate substantial savings for JIRAMA, the state-owned utility company while fulfilling Madagascar’s climate agenda. 

Anas Charafi, Senior Investment Director at Africa50, emphasised the project’s strategic importance. “This technical assistance funding by DFC is a testament to the strength and strategic importance of the Volobe project. It will help expedite the development of the project, which will support industrialization and play a key role in decarbonising the energy sector.”