Sub-Saharan Africa, long hampered by unreliable and expensive electricity, is witnessing a surge in investment aimed at powering its industrial growth with renewable energy. The Emerging Africa & Asia Infrastructure Fund (EAAIF), a vehicle managed by investment firm Ninety One and backed by the Private Infrastructure Development Group (PIDG), has committed $45 million to CrossBoundary Energy (CBE), a leading provider of clean power solutions for businesses across the continent.

This injection of capital is part of a larger $300 million senior debt facility orchestrated by Standard Bank of South Africa, which recently underwrote an initial $141.5 million tranche. The funds are earmarked for CBE to aggressively expand its portfolio of commercial and industrial (C&I) renewable energy projects, encompassing solar, wind, hybrid systems and battery storage.

For businesses operating in Africa, the promise of reliable and affordable power cannot be overstated. Grid infrastructure across much of the continent remains fragile, plagued by frequent outages and forcing companies to rely on costly and polluting diesel generators as backup. In Nigeria alone, power shortages are estimated to bleed the economy of $26 billion annually, according to industry figures.

This precarious energy landscape has created a fertile ground for companies like CBE, which offers an “energy-as-a-service” model. This innovative approach allows businesses to transition to cleaner energy sources — solar panels on factory roofs, wind turbines powering mining operations — without the burden of upfront capital expenditure. CBE finances, builds, and operates the renewable energy systems, selling power to businesses under long-term contracts, often at rates competitive with or below grid tariffs and diesel generation.

Esther Chan, Director at Ninety One, highlighted the strategic rationale behind EAAIF’s investment. “This is EAAIF’s first foray into the C&I energy space in Africa, complementing our existing investments in large-scale utility renewable projects,” she explained. “Our partnership with CrossBoundary Energy is driven by a shared vision: to fuel Africa’s economic transformation through clean energy, empowering job-creating industries to flourish. We believe this investment exemplifies EAAIF’s mandate to finance infrastructure that tangibly boosts productivity and drives long-term development in pivotal sectors.”

CBE’s current footprint spans nine African nations, including Nigeria, Somalia, Sierra Leone, and Madagascar. Its operational portfolio already comprises 25 projects, valued at approximately $100 million, with a generation capacity of 60MW and 22MWh of battery storage. Significantly, the company boasts a future project pipeline worth a substantial $560 million, including 440MW of generation assets and over 570MWh of battery storage, indicating the scale of demand for its services.

The EAAIF funding is strategically targeted at expanding CBE’s reach within energy-intensive sectors such as manufacturing, telecommunications and mining. These industries, often the engines of economic growth, are particularly vulnerable to the vagaries of unreliable power supply. CBE’s solutions offer a route to enhanced energy security, reduced operational expenditure, and crucially, a lower carbon footprint — increasingly important for businesses operating in global markets facing growing pressure to decarbonize.

Pieter Joubert, President and Chief Investment Officer at CrossBoundary Energy, underscored the robust demand for their offering. “The success we’ve seen with our existing projects and the strength of our pipeline clearly demonstrates the appetite for energy-as-a-service, especially within mining, telecommunications, and industrial sectors. The EAAIF commitment is a significant catalyst, providing crucial financing to scale our portfolio further. We are grateful to partners like EAAIF who share our dedication to fostering clean, sustainable growth across Africa.”

For PIDG, the investment aligns with its broader mission to mobilise private capital into infrastructure projects that support both economic development and climate objectives. The fund aims to deploy over $1 billion in debt capital across Africa and Asia by 2028, with a pronounced emphasis on renewable energy and sustainable infrastructure.

The partnership between EAAIF and CBE indicates a growing trend: institutional investors are increasingly recognizing the compelling investment case for C&I renewable energy in Africa. Driven by the continent’s burgeoning industrial aspirations, chronic power deficits, and the global imperative for decarbonization, this sector is poised for significant expansion. As Africa seeks to accelerate its economic development and build resilience in a climate-constrained world, reliable, clean and cost-effective power will be paramount, making investments like EAAIF’s not just financially sound, but strategically vital.