CFTC approves Old Mutual Infrastructure Investment Fund’s acquisition of 25% minority shares in Golomoti JCM Solar Corporation Limited

* Old Mutual Infrastructure Trust Fund was founded in December 2021, as a special purpose vehicle for infrastructure investments

* With a focus on public infrastructure mainly student housing, transportation, and renewable energy

By Duncan Mlanjira

Competition & Fair Trading Commission (CFTC) has approved the acquisition of 25% minority shares from InfraCo Africa Limited in Golomoti JCM Solar Corporation Limited that was applied for on April 25, 2025 by Old Mutual Infrastructure Investment Fund.

This has been done having established that the company merger between between Golomoti JCM Solar Corporation Limited and Old Mutual Infrastructure Investment Fund “will not change the existing market dynamics, would not lead to the creation of a dominant player but might result in a more competitive one — and that there are no public concerns against this transaction”.

This was announced yesterday at a press briefing held at Crossroads Hotel in Blantyre where CFTC disclosed its recent decisions made at its 73rd meeting on June 17, 2025, to consider and adjudicate over cases on anti-competitive business practices and unfair trading conducts.

In his statement, CFTC Chief Executive Officer, Lloyds Vincent Nkhoma indicated that according to the information submitted, Old Mutual Infrastructure Trust Fund was founded in December 2021, “as a special purpose vehicle for infrastructure investments — with a focus on public infrastructure mainly student housing, transportation, and renewable energy”.

“According to the information sourced by the CFTC Secretariat, InfraCo originates, develops, structures and manages infrastructure projects across Africa, reducing risk and supporting their progress from early stage to operation.

“Their aim is to create a pipeline of bankable projects, ready to attract private capital and generate the sustainable impact that’s needed.

“The proposed transaction is notifiable under the Competition & Fair Trading Act (CFTA) and is, therefore, subject to review by the Commission to establish whether it will likely raise competition concerns in the relevant market.”

But the CFTC established that the transaction will not change the existing market dynamics and upon deliberations, the Commissioners authorised the merger.

In February 2025, Old Mutual Infrastructure Investment Trust Fund signed a sale purchase agreement for a 25% stake in Golomoti JCM Solar Corporation Ltd held by Private Infrastructure Development Group (PIDG) company InfraCo Ltd — a stake that Old Mutual Malawi reported that “will be beneficial in reducing foreign currency exchange risk on the project whilst attracting future investment into the country’s renewable energy sector”.

“This deal demonstrates Old Mutual (Malawi) Limited’s commitment to responsible investing, and to supporting Malawi’s renewable energy sector as part of its diversified infrastructure portfolio, while offering solid returns to investors,” reported the company in February.

“The agreement epitomises PIDG’s project development offering, InfraCo, and aligns well with the Group-wide strategy to unlock new sources of funding for sustainable infrastructure.

“It further demonstrates mutual benefits between development finance institutions such as PIDG and the private sector. PIDG uses public funding to de-risk infrastructure projects working with private sector partners to develop them to the highest standards of health, safety, environmental and social governance, and business integrity as done in Malawi together with JCM Power and then sell the stake to reputable investors such as Old Mutual (Malawi) enabling the recycling of funding into the development of new, climate-resilient infrastructure across Africa.”

Old Mutual (Malawi) further reported that the completion of the transaction marked “an exciting milestone within its strategy, which includes investing in renewable energy, as part of its responsible investment philosophy”.

“It further demonstrates a mutually beneficial strategy, where investors can expect solid returns from non-traditional investments, with significant economic and social impact, as the country seeks to expand and diversify energy generation.

“Commissioned in 2022, the 20MW solar plant at Golomoti in Dedza District has a 5MW battery energy storage system (BESS). When built, Golomoti’s BESS was the first grid-connected, utility-scale hybrid solar BESS in sub-Saharan Africa.

“Made possible by support from Innovate UK’s Energy Catalyst and RINA, the BESS serves to stabilise the plant’s delivery of renewable energy to Malawi’s national grid.

“The solar plant has been central to community transformation as JCM Power and InfraCo, together with additional grant funding from PIDG, have worked closely with the neighbouring Pitala community, to provide reliable and safe drinking water access to over 2,000 people through the installation of nine boreholes.

“Additionally, projects under JCM’s corporate social responsibility and livelihood restoration programs include training and provision of inputs for sustainable agricultural initiatives, the construction of a community grain storage warehouse and investments in both education and local health care facilities.

“JCM Power are also demonstrating the value of agrivoltaics through growing chillies, bee-keeping and grazing sheep under the solar panels.”

Old Mutual indicates that the signing of the sale purchase agreement aligns with Malawi’s strategic vision as set out in MW2063 of transforming the nation — a vision that “emphasises the importance of developing bankable infrastructure projects – specifically around renewable Independent Power Producers (IPPs); which can attract private investment and meet the growing energy needs of customers in Malawi, and neighbouring countries”.

Old Mutual also reported that the deal will be finalised in August 2025, and JCM Power has been continuing to operate the Golomoti Solar plant with Old Mutual (Malawi) appointing a director to the company board.