CrossBoundary Energy (CBE) obtains funds to continue its expansion in Africa. The company, which supplies solar power to commercial and industrial (C&I) customers, has raised $40 million through its first fund with a 15% net internal rate of return (IRR). As part of this transaction, ARCH Emerging Markets Partners’ Africa Renewable Power Fund (ARCH ARPF) provided $40 million in equity.
ARCH ARPF’s interest in renewable energy is not new, as the fund is scouting for investment opportunities in the very dynamic clean energy sector in sub-Saharan Africa. A few weeks ago, the Mauritius-based investment fund invested US$3 million in Sun Exchange, a peer-to-peer solar leasing platform.
Financing that calls for more…
Its investment in CBE should consolidate its African ambitions. CrossBoundary Energy intends to build on these funds to continue to develop, build and operate distributed solar C&I projects “that will provide African businesses with access to cheaper and cleaner energy”.
“This commitment from ARCH ARPF supports the next phase of a larger $100 million transaction that will enable us to scale up the C&I sector across Africa, further reducing energy costs for our clients, creating additional jobs in the solar sector and significantly reducing carbon emissions,” says Pieter Joubert, CrossBoundary Energy’s Chief Investment Officer.
CBE’s expansion in Sub-Saharan Africa
“The substantial raising of new capital highlights the exciting potential of distributed solar energy to provide more reliable and affordable electricity to African businesses. Over the past five years, CBE has pioneered the creation of the solar C&I sector in Africa”, explains CrossBoundary Energy.
The company currently operates $57 million of assets in eight African countries including Kenya, Rwanda, Ghana, Madagascar, Uganda, Sierra Leone, Zambia and Nigeria. It produces and sells solar energy to customers such as Unilever, Diageo, Coca-Cola distributors, Rio Tinto, Heineken, AB InBev, Actis, as well as local businesses such as Kasapreko and Xflora Group. With its 20 customers, CrossBoundary Energy has an installed capacity of 40 MW, as well as 10 MWh of battery power storage.
Jean Marie Takouleu