CrossBoundary Energy Secures US$40 Million Investment from IFDK to Deploy Clean Energy in Africa

CrossBoundary Energy (CBE) has secured a US$40 million equity-like capital investment from a new partner, Impact Fund Denmark (IFDK). The investment will help CBE build its rapidly expanding portfolio of clean energy projects across Africa, addressing one of the continent’s most pressing development challenges.

Thomas Hougaard, Managing Director and Co-Head of Green Energy and Infrastructure at Impact Fund Denmark, emphasized the strategic alignment of this investment: “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.”

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The Scale of Africa’s Energy Challenge

The investment comes at a critical time for African energy development. Currently, around 600 million Africans lack electricity, while nearly a billion do not have access to clean cooking facilities. This represents nearly half the continent’s population and more than 80 percent of the global electricity access gap.

Africa is home to 60% of the best solar resources globally, yet only 1% of installed solar PV capacity, highlighting the enormous untapped potential for renewable energy development. Despite this abundance of natural resources, Africa only received 2.4 percent of global renewable energy investment between 2010 and 2020, with three-fourths concentrated in just South Africa, Morocco, Egypt, and Kenya.

Energy access is frequently cited as a major hindrance to African businesses. In countries with weak or unreliable electricity grids, the deployment of solar photovoltaic (PV) and battery energy storage systems (BESS) can rapidly bring additional power capacity to sectors that require clean and stable electricity. Flexible power purchase agreements (PPAs) enable African enterprises to access these energy solutions without the need for capital expenditure outlay.

CrossBoundary Energy’s Innovative Business Model

Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy, explained the company’s transformative approach: “Our zero-CapEx model lowers the barrier to entry for African businesses seeking stable, clean, and cost-effective power. Once companies’ balance sheets are freed up to invest in their core value-generating activities rather than power provision, they can reach and exceed their targets, unlocking further economic value in the regions in which they operate.”

This innovative financing model is particularly crucial in African markets where access to capital remains a significant barrier to business development. Traditional approaches often require substantial upfront investments that many African businesses cannot afford, making CrossBoundary Energy’s service-based model a game-changer for the continent’s economic development.

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$680 million portfolio of awarded, signed, in-construction, and operating energy assets, the company boasts over 500 MWp of solar PV, wind generation, and thermal projects and approximately 600 MWh of battery energy storage solutions.

Landmark Kamoa Copper Project: Africa’s First Solar Baseload Plant

CrossBoundary Energy is currently constructing the first solar/BESS baseload plant in Africa after signing Africa’s largest commercial and industrial PPA with Kamoa Copper SA, the world’s fifth-largest copper mine in the Democratic Republic of the Congo. This groundbreaking project represents a paradigm shift in how energy is supplied to industrial operations across Africa.

The renewable energy system will include a 222 MWp solar PV system and a 123 MVA/526 MWh battery energy storage system, providing 30 MW of dispatchable renewable baseload energy supply to the mine. The plant will offset fuel generators and reduce carbon emissions by around 78,750 tonnes per year while producing approximately 300,000 MWh of clean energy annually.

This project is particularly significant because it represents the first time in Africa that solar PV and battery storage can provide guaranteed baseload power – electricity available 24/7 regardless of weather conditions. Many mines have incorporated solar PV and BESS systems into their operations, but the supply of baseload energy is rare for solar PV and BESS, as the sector has typically been cautious of intermittency.

However, due to the increasing efficiency of solar PV and the declining cost of BESS components, a renewable baseload system is now viable and cheaper than the diesel generators currently providing power to the mine. This technological advancement opens up new possibilities for heavy industry across Africa to transition away from costly and polluting diesel generators.

Impact Fund Denmark: A Strategic Development Partner

Impact Fund Denmark (IFDK), formerly known as IFU, is Denmark’s development finance institution that has been operating since 1967. The organization has a strong track record in emerging market investments, having invested in 1,300 companies across 100 countries in Africa, Asia, Latin America and parts of Europe, committing around USD 3.64 billion in capital.

IFDK focuses on sustainable growth and high-impact solutions, mobilising capital to tackle global challenges where the need is greatest. The organization’s investment strategy aligns perfectly with CrossBoundary Energy’s mission, particularly in addressing energy poverty while promoting economic development in fragile regions.

The Danish government has been particularly active in supporting green energy initiatives. Innovation Fund Denmark, a separate but related entity, has invested approximately 800 million DKK in green research and innovation projects within climate, energy, environment, and bioresources. This demonstrates Denmark’s broader commitment to supporting sustainable development both domestically and internationally.

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Building Momentum: A Series of Major Investments

The IFDK investment represents the latest in a series of significant funding milestones for CrossBoundary Energy in 2025. Earlier this year, Norfund doubled its investment in CBE to US$80 million, demonstrating growing international confidence in the company’s business model and execution capabilities.

This followed a US$140 million senior debt close from Standard Bank at the end of 2024, as the first tranche of a $300 million senior debt mandate. The company has also recently secured a US$495 million guarantee framework from the World Bank’s MIGA (Multilateral Investment Guarantee Agency), which will protect the firm’s assets from transfer restriction and currency inconvertibility – critical protections for operating in challenging African markets.

In March 2025, the Emerging Africa & Asia Infrastructure Fund (EAAIF) contributed US$45 million to CrossBoundary Energy Holdings as part of a broader effort to accelerate new commercial and industrial renewable energy projects across the continent. These investments demonstrate the growing recognition of CrossBoundary Energy’s potential to transform Africa’s energy landscape.

Operational Excellence Across 18 African Countries

CrossBoundary Energy’s track record extends far beyond single projects. The group has about 24 projects at mining, commercial, manufacturing, telecoms, real estate and petrochemical sites across Africa, including in Zimbabwe, Kenya, Sierra Leone, Nigeria, Egypt, Ghana, Madagascar, and Mozambique.

CrossBoundary Energy is headquartered in Mauritius and operates in 18 African countries. Its clients include industry leaders Rio Tinto, Unilever, Diageo, Heineken, and the Devki Group – demonstrating the company’s ability to serve major multinational corporations with demanding energy requirements.

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. This diversification across sectors and geographies helps mitigate risks while maximizing the company’s impact across different segments of the African economy.

The Role of International Cooperation in Africa’s Energy Transition

CrossBoundary Energy’s success story illustrates the critical role of international cooperation in addressing Africa’s energy challenges. Through initiatives like Mission 300, the World Bank Group, the African Development Bank Group and the Sustainable Energy for All (SE4ALL) initiative are working with partners to expand electricity access to 300 million people throughout the continent by 2030.

In January 2025, the World Bank and AfDB launched Mission 300 at the Africa Energy Summit in Dar es Salaam. The AfDB committed to 50 million connections, while the World Bank pledged 250 million. Twelve African nations, including Nigeria, Senegal, and Tanzania, have already committed to bold energy sector reforms.

The European Commission and the Republic of South Africa, together with Global Citizen, have launched a year-long ‘Scaling up Renewables in Africa’ pledging campaign that seeks to drive new commitments on policy and finance from governments, financial institutions, private sector and philanthropists to boost renewable power in Africa.

Technology Advances Enable New Business Models

The success of projects like the Kamoa Copper baseload solar plant reflects broader technological advances that are transforming the renewable energy landscape in Africa. Solar photovoltaic installations received $18 billion between 2010 and 2020, approximately a third of all renewable energy investment in the continent.

Solar PV – already the cheapest source of power in many parts of Africa – outcompetes all sources continent-wide by 2030. This cost competitiveness, combined with advances in battery storage technology, enables new business models like CrossBoundary Energy’s zero-CapEx approach.

Recent research shows that harnessing just 25% of Africa’s renewable energy potential could significantly reduce energy poverty, contributing to a sustainable, low-carbon future. The declining costs of renewable energy technologies, driven by innovation, economies of scale, and market dynamics, make renewable energy increasingly competitive with traditional energy sources.

Execution Timeline and Market Impact

Tom Roberts, Associate Principal at CrossBoundary Energy, highlighted the efficiency of the IFDK partnership: “The investment from IFDK is crucial for CBE to provide its service offering to clients like Kamoa Copper. IFDK’s dedicated collaboration enabled us to successfully navigate cross-border legal complexities to close the transaction within 3 months. We look forward to an ongoing partnership with IFDK.”

The rapid transaction timeline demonstrates the maturity of CrossBoundary Energy’s investment processes and the sophistication of international development finance institutions in supporting African energy projects. Construction of the Kamoa Copper renewable energy facility is scheduled to commence in August 2025, with the project serving as a template for similar initiatives across the continent.

Broader Economic and Social Impact

The economic implications of improved energy access in Africa extend far beyond individual projects. According to the International Energy Agency, around 4 million additional energy-related jobs are needed across the continent by 2030, largely to reach universal energy access in sub-Saharan Africa.

The African Development Bank has connected more than 28 million people to electricity among the 515 million whose lives it has impacted in Africa, including 231 million women who suffer most from the energy deficit. This demonstrates how energy investments can have particularly transformative effects for vulnerable populations.

The social impact extends to healthcare, education, and economic opportunities. Reliable electricity enables schools to operate computer labs and provide evening classes, hospitals to store vaccines and operate life-saving equipment, and businesses to expand their operations and create jobs. For women in particular, access to clean energy solutions reduces time spent on fuel collection and improves safety conditions.

Future Outlook and Strategic Implications

As CrossBoundary Energy continues to scale its operations across Africa, the company is positioned to play a crucial role in the continent’s broader economic transformation. Africa produces little energy compared to other regions, with only 5.7% of world energy production in 2023, which would increase to 6.8% in 2050—a portion vastly out of balance with its large and growing population and development needs.

The success of innovative financing models like CrossBoundary Energy’s zero-CapEx approach could inspire similar initiatives across other infrastructure sectors in Africa. By proving that distributed renewable energy can provide reliable, cost-effective power to industrial customers, the company is helping to establish new standards for sustainable development on the continent.

The World Bank and development partners have recognized that achieving universal energy access in Africa hinges on using both renewable energy and natural gas, with renewable energy playing an increasingly dominant role as costs continue to decline and technology improves.

The CrossBoundary Energy model also demonstrates how private sector innovation, supported by patient development capital from institutions like Impact Fund Denmark, can address complex development challenges while generating sustainable financial returns. This approach offers a scalable template for addressing other critical infrastructure needs across Africa, from water and sanitation to telecommunications and transportation.

As the company continues to expand its portfolio with the support of IFDK and other strategic investors, CrossBoundary Energy is well-positioned to contribute significantly to Africa’s goal of achieving universal energy access while supporting the continent’s transition to a more sustainable, climate-resilient economy.

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By: Montel Kamau

Serrari Financial Analyst

20th August, 2025