Earlier this month, the Emerging Africa and Asia Infrastructure Fund (EAAIF), managed by Ninety One, committed USD 45 million in funding to CrossBoundary Energy (CBE) to accelerate the deployment of renewable energy solutions across Africa. This financing is part of a USD 300 million senior debt facility led by The Standard Bank of South Africa, which recently underwrote USD 141.5 million in its first tranche.
Scaling Renewable Energy Across Africa 🌍
CBE is at the forefront of financing distributed solar, wind, hybrid, and battery energy storage systems (BESS) for commercial and industrial (C&I) clients. With operations spanning nine African countries—including Nigeria, Somalia, Sierra Leone, and Madagascar—the company’s approach mitigates macro risks while ensuring energy security in key sectors.
📌 Key Figures:
- Current portfolio: 25 operational projects valued at ~USD 100 million, comprising 60 MW of generation assets and 22 MWh of BESS.
- Pipeline: Projects under construction, signed, or awarded worth ~USD 560 million, adding 440 MW of generation capacity and over 570 MWh of BESS.
- Focus sectors: Manufacturing, mining, telecommunications, and industrial businesses.
Why This Investment Matters 🔋
Reliable and affordable energy remains a major challenge for businesses across Sub-Saharan Africa (SSA). In Nigeria alone, electricity shortages cost the economy up to USD 26 billion annually. Many companies, especially in energy-intensive industries, suffer from high electricity costs and frequent power outages that hinder growth.
With EAAIF’s support, CBE will: ✅ Expand its renewable energy-as-a-service model for businesses. ✅ Help companies reduce emissions at scale while improving energy reliability. ✅ Strengthen Africa’s clean energy transition by integrating solar, wind, and BESS into industrial power systems.
Financial Modelling Considerations for Investors 📊
For financial modellers and investors, distributed renewable energy projects like CBE’s require a nuanced approach to project finance and risk assessment:
- Revenue Structuring: Analysing energy service agreements to ensure stable cash flows.
- CapEx & OpEx Modelling: Evaluating initial infrastructure costs versus long-term savings from renewables.
- Debt Structuring: Understanding the impact of the USD 300 million senior debt facility on capital efficiency.
- Carbon Credit Monetization: Exploring additional revenue streams from decarbonization initiatives.
A Broader Vision for Africa’s Energy Future 🌱
EAAIF’s funding is aligned with the Private Infrastructure Development Group (PIDG) strategy, which aims to deploy over USD 1 billion in climate-positive infrastructure projects across Africa and Asia by 2028. This investment underscores the growing appetite for blended finance solutions that can accelerate Africa’s clean energy transition while driving economic growth.
Looking Ahead 🚀
As CrossBoundary Energy scales its operations, its energy-as-a-service model is set to redefine industrial power solutions in Africa. With innovative financing and strategic partnerships, the continent’s transition to sustainable energy is well underway.
🔍 Interested in financial modelling for renewable energy investments? Partner with Finteam for tailored strategies that maximize bankability and impact. 🌍📊
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