LTL plans to expand into power generation in Africa eyeing IPP opportunities

By Nishel Fernando

LTL Holdings Ltd is planning to expand into power generation in Africa, eyeing independent power producer (IPP) opportunities after setting up a US $ 2.2 million distribution transformer assembly plant in Tanzania.

“That’s why we are setting up a transformer assembly plant in Tanzania to cater to this region. As the next step, we are planning to move into power generation,” LTL Holdings Ltd Chief Executive Officer and Executive Director Mohamed Jalaldeen Mohamed Nuhuman Marikkar said.

LTL is currently in the process of establishing a distribution transformer assembly plant in Tanzania, with an annual manufacturing capacity of 1,000 transformers. The plant will be set up to meet the growing demand for transformers in Tanzania and neighbouring countries such as Uganda, Kenya, Mozambique and Ethiopia. The operations in Tanzania will initially commence as an assembly plant for transformer parts imported from Sri Lanka, in an existing facility that has been obtained on a leasehold basis. Within two years, the operation is expected to be developed into a comprehensive assembly facility on its own premises, with plans for further development into a fully-fledged manufacturing plant, with a higher capacity in the future. 
With 44 percent of the population in Africa lacking access to electricity, he noted that LTL has identified opportunities on the continent.  The region already accounts for a substantial portion of the group’s export revenue. 

Focus markets in Africa include Nigeria, Uganda, Namibia, Mozambique, Tanzania, Kenya, Botswana and Sierra Leone. LTL is also exploring IPP opportunities in the region.

In addition, LTL also identified Cambodia in South-East Asia as a potential market. Despite 82.5 percent of the population having access to electricity, the reliability of supply remains challenging, with two-thirds of households with access facing frequent power shortages in Cambodia.