EAAIF contributes US$45 Million to CrossBoundary Energy Holdings to power commercial and industrial (C&I) renewable energy projects across Africa
- Supports CrossBoundary Energy to develop a target portfolio of US$500 million by 2027, meeting growing demand for solar, wind, and battery storage and hybrid energy solutions.
- EAAIF’s commitment enables CrossBoundary Energy to accelerate new commercial and industrial (C&I) renewable energy projects across the continent with breakthrough technologies.
- The Fund’s first C&I investment in Africa forms part of a US$141.5 million senior debt facility to catalyse CrossBoundary Energy’s growth on the continent.
London, March 5: The Emerging Africa & Asia Infrastructure Fund (EAAIF), a Private Infrastructure Development Group (PIDG) company managed by Ninety One, today announced a US$45 million funding contribution to CrossBoundary Energy Holdings. EAAIF’s investment will drive the expansion of pioneering solar, wind, hybrid energy, and battery energy storage systems (BESS) in countries with favourable conditions for renewable energy where access to reliable and affordable power is critical to business growth.
CrossBoundary Energy (CBE) is a pioneer in financing distributed solar for businesses in Africa – demonstrating the tremendous potential of the growing asset class, with diversified operations in nine African countries, including Nigeria, Somalia, Sierra Leone, Madagascar, and more. The company’s expansive footprint across several markets mitigates exposure to macro risks and seeks to maximise energy security across the region. The company is a leading provider of clean, reliable, low-cost energy solutions to commercial & industrial (C&I) clients with a portfolio of 25 operational projects worth ~$100M, comprising ~60 MW of generation assets and 22MWh of BESS, and an additional portfolio of projects under construction, signed or awarded of ~US$560 million, including 440 MW generation assets and over 570MWh BESS.
EAAIF’s commitment will help CrossBoundary Energy expand its portfolio in key sectors such as manufacturing and telecommunications, reducing emissions at scale within energy intensive sectors. The investment is part of a broader US$300 million senior debt facility led and arranged by The Standard Bank of South Africa Limited, which recently underwrote US$141.5 million for the first tranche of the facility. By providing crucial financing, the facility accelerates CBE’s growth plan to supply renewable energy technologies such as photovoltaic solar, wind, BESS, hydropower, and complementary thermal to businesses in regions where electricity supply is unreliable and power outages are commonplace.
The imperative for such solutions is pressing in sub-Saharan Africa (SSA), where many large companies, particularly industrials, record high electricity costs and insufficient grid reliability as
an impediment to operational efficiency and business growth. In Nigeria alone, the economy loses as much as US$26 billion annually1 due to electricity shortages and power cuts.
In addition to strengthening Africa’s energy infrastructure, EAAIF’s funding will support decarbonisation efforts by expanding clean energy-as-a-service, enhancing the sustainability and competitiveness of African businesses. The contribution forms part of PIDG’s wider mandate to accelerate the flows of public and private finance deployed for climate and nature with EAAIF deploying over US$1 billion in debt capital to transformative infrastructure in Asia and Africa by 2028.
Esther Chan, Director, Ninety One, the fund manager of EAAIF, said: “Our funding contribution to CrossBoundary Energy Holdings marks a significant milestone as EAAIF’s first commercial and industrial energy investment in Africa, complementing the Fund’s investments in numerous utility-sized renewable energy projects. In our partnership with CrossBoundary Energy, our shared objective is driving Africa’s clean energy transition and economic transformation by enabling job-creating industries to thrive. Our investment is a testament to EAAIF’s ability to identify and finance infrastructure projects that can boost productivity and foster long-term development in strategic sectors with the power to reshape entire economies.”
Pieter Joubert, President and Chief Investment Officer of CrossBoundary Energy, said: “The success of our current portfolio and future pipeline proves that the demand for energy-as-a-service—particularly in mining, telecommunications, and industrial sectors—is higher than ever. The contribution from EAAIF will significantly support our business by providing finance now that will assist with further scaling of our portfolio. We’re grateful to funders like EAAIF who share our commitment to furthering clean growth in Africa.”