Investing in reliable power supply for African companies

Investing in reliable power supply is crucial for the growth and sustainability of African companies. A USD 40m investment from Impact Fund Denmark in CrossBoundary Energy will support stable and sustainable electricity solutions throughout Africa.

Impact Fund Denmark has committed an investment of USD 40 million to CrossBoundary Energy (CBE), with the aim of bolstering stable and sustainable electricity solutions throughout Africa. This funding will primarily support the provision of green energy for businesses, reducing reliance on diesel generators and thereby significantly curbing CO2 emissions.
 
Africa faces significant electricity challenges, with many countries offering unreliable grids and low access to power. CBE develops, finances, and operates distributed power generation assets, such as solar and battery energy storage systems for private companies in Africa. This addresses the critical need for affordable and dependable energy, ensuring a reliable and clean supply of electricity – mostly at a lower cost than traditional grid power or diesel generators.

This investment aligns with our primary objectives: tackling climate change, supporting poor and fragile regions, and fostering growth in Africa. By supporting CrossBoundary Energy, we are contributing to sustainable development, reducing carbon emissions, and improving the quality of life for communities across Africa. We also see significant growth opportunities on the continent, where innovative energy solutions can unlock economic potential and drive inclusive progress.

Thomas Hougaard, Managing Director and Co-Head of Green Energy and Infrastructure at Impact Fund Denmark.

CBE’s portfolio includes 30 projects across 8 countries, with rapid expansion on the horizon. Current clients include major local and international firms across diverse commercial and industrial industries, such as Unilever, Guinness, and Rio Tinto. CBE offers flexible Power Purchase or lease agreements for 15-20 years, managing construction and maintenance through external service providers while overseeing processes to ensure safe and efficient operations.
 
“Our zero-CapEx model lowers the barrier to entry for African businesses seeking stable, clean, and cost-effective power,” said Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy. “These companies’ balance sheets are freed up to invest in their core value-generating activities, allowing them to reach and exceed their targets and unlock further economic value in the regions in which they operate.”
 
Many projects in CBE’s portfolio have far-reaching impacts for economic and sustainable development in Africa. CrossBoundary Energy recently enabled the first 5G network rollout in Sierra Leone through powering telecom towers with solar and battery systems in the capital, Freetown. The company is currently completing Madagascar’s first wind farm, in support of a successful 14 MWp solar PV project for Rio Tinto in the Southeast of the country.

The collaboration between Impact Fund Denmark and CrossBoundary Energy marks a significant step forward in promoting green energy solutions and ensuring a brighter, more sustainable future for Africa.
 
For media inquiries, please contact:
Charlotte Holst Frahm
Senior Vice President, Communication & Marketing
Mobile:  +45 41 38 12 42
Email:  chf@impactfund.dk
 
Kate Pallett
Senior Marketing and Communications Manager, CrossBoundary Energy
Mobile: +27 (0) 76 484 9451
Email: kate.pallett@crossboundary.com
 
About CBE

  • CBE operates in multiple African countries. The portfolio currently includes 30 projects across 8 countries, and is growing rapidly
  • The diversified portfolio helps mitigate country and offtaker risk, with operations across multiple regions and industries. 
  • Currently, CBE has an operating portfolio of over 57 MW, and a further 240+ MW currently under construction. An additional 213 MW of renewable energy capacity and 134 MWh of battery energy storage are also in the current pipeline for construction.

About African electricity issues:

In many African countries, grid reliability is low with daily outages. This includes:

About CrossBoundary Energy
CrossBoundary Energy develops, owns, and operates distributed renewable energy solutions for businesses, offering cheaper and cleaner energy through power purchase and lease agreements. With a US$670M portfolio of awarded, signed, in-construction, and operating energy assets, the company boasts over 520 MWp of solar PV, wind generation, and thermal projects and more than 712 MWh of battery energy storage systems. Its clients include industry leaders like Rio Tinto, Ivanhoe, Unilever, Diageo, Heineken, and the Devki Group. The diverse portfolio features large-scale renewable-led hybrid power plants for mines, rooftop and ground-mount solar PV plants for industrial clients, and distributed solar PV and battery power solutions for telecommunications sites. As a member of the CrossBoundary Group, founded in 2011, CrossBoundary Energy is dedicated to unlocking the power of capital for sustainable growth and strong returns in underserved markets. Learn more at www.crossboundaryenergy.com.