Norfund, the Norwegian investment fund for developing countries, has invested an additional US$40M in CrossBoundary Energy to further scale its African portfolio of commercial and industrial energy assets.
The follow-on investment, which closed in December 2024, will double Norfund’s initial US$40M investment in CrossBoundary Energy in July 2022. Prior to Norfund’s investment, CrossBoundary Energy received US$40M investment from ARCH’s Africa Renewable Power Fund.
Over the past year, CrossBoundary Energy has successfully grown its awarded portfolio to around US$680M across 18 African countries, comprising 500 MW of solar, wind, and thermal assets and over 600 MWh of battery energy storage solutions. The 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.
“Norfund’s investment signifies a strong vote of confidence in CBE’s capability to meet the increasing demand of commercial and industrial customers for affordable, clean, and reliable power – the backbone of powering sustainable growth in key industries and economies across Africa.”
Muna Yuusuf, Associate Principal at CrossBoundary Energy, “The need for innovative energy solutions in Africa is growing rapidly. CrossBoundary Energy is a leading provider of solutions that are poised to bolster clean energy capacity and job creation on the continent.”
Norfund has committed an additional $40 million to expand its African C&I energy portfolio, reinforcing its support for the region’s growing energy needs in the commercial and industrial sectors.
Over the past year, CrossBoundary Energy has successfully grown its awarded portfolio to around US$680M across 18 African countries, comprising 500 MW of solar, wind, and thermal assets and over 600 MWh of battery energy storage solutions. The 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.
“The need for innovative energy solutions in Africa is growing rapidly. CrossBoundary Energy is a leading provider of solutions that are poised to bolster clean energy capacity and job creation on the continent.”Rivhatshinyi Mandavha, Senior Investment Manager at Norfund.
CrossBoundary Energy has secured a US$140M senior debt commitment from the Standard Bank of South Africa on a fully underwritten basis. The groundbreaking transaction highlights the potential role of commercial funders in supporting the adoption of renewable energy solutions by businesses across Africa.
The financing is being undertaken as a first tranche within a broader mandate with the Standard Bank of South Africa, which has been appointed to lead and arrange up to US$300M senior debt to support the scaling of CrossBoundary Energy’s renewable energy portfolio serving Commercial and Industrial (C&I) clients across Africa.
CrossBoundary Energy was supported by Cygnum Capital acting as exclusive financial adviser, and by Bracewell (UK) LLP as borrower’s counsel. Trinity International LLP acted as lenders’ counsel on the transaction.
In Africa, access to reliable and affordable power is one of the largest impediments to business growth. While service providers can solve this, access to finance remains an immense barrier to companies accessing that power. The IEA estimates that the energy transition will require US$160B annual investment between 2026—2030 to align with climate goals, the bulk of which will come from the private sector.