NEWS

Africa GreenCo and WestLum Energy (WestLum) have completed a contract for difference (CFD) trade on Green Tiger Markets (GTM), an independent, Singapore-based digital marketplace for electricity forward contracts. The trade is believed to be the first on-market electricity CFD of its kind in Southern Africa.

The contract covers baseload power for October 2026, with cash settlement based on a competitive market reference price from SAPP. Both parties agree on a fixed price for the month, without any physical delivery of electricity.

CFDs are widely used in more established power markets, allowing generators, traders and buyers to manage exposure to changing electricity prices.

The trade forms part of a small CFD pilot by Africa GreenCo, with further monthly contracts expected. WestLum participates in GTM through its London-based trading desk, which provides market-making services and liquidity in Southern Africa and the Philippines.

“Our team has been placing bids and offers on GTM, and in October WestLum matched one of them. We are running the pilot at a small volume to test pricing, credit and settlement under real market conditions before we scale.” Isabel Fick, Head of Trading and Operations, Africa GreenCo.

“New market instruments earn trust through the discipline behind them. We have put in place the credit, settlement, reporting and risk controls this kind of trading demands, to standards that utilities, regulators and financiers can rely on.” Johannes Baake, Co-Founder and Chief Operations Officer, Africa GreenCo.

“We are delighted that WestLum has concluded this first trade with Africa GreenCo. As a group, WestProp Holdings seeks to bring first-of-their-kind initiatives to the region. Price-hedging tools such as CFDs will help unlock greater investment across the sector.” Kenneth Sharpe, Chairman, WestLum Energy and Chief Executive Officer, WestProp Holdings.

“CFDs have served developed power markets well, attracting investors through the price certainty they provide. The SAPP region faces a serious investment gap in its electricity sector, and initiatives like this one will help build the investor confidence needed to close it.” Wisper Gwena, Chief Executive Officer, WestLum Energy.