Kenya's CrossBoundary Energy Receives $50M to Accelerate Solar Energy Adoption in Africa

CrossBoundary Energy which has already delivered a portfolio of over $285 million worth of solar and renewable energy assets for its clients, has raised $50 million to expand its portfolio across Africa.

CrossBoundary Energy
Photo by Nuno Marques / Unsplash

CrossBoundary Energy Access (CBEA), a Kenya-based mini-grid infrastructure investor, is set to make significant strides in providing safe, clean, and affordable energy options to Sub-Saharan Africans following a successful $50 million investment round. This latest funding round comprises a $30 million multi-country facility from the Facility for Energy Inclusion (FEI) managed by Cygnum Capital, with an additional $20 million in the pipeline. The investments will bolster CrossBoundary Energy's efforts to expand its commercial and industrial (C&I) renewable energy systems portfolio across Africa.

CrossBoundary Energy, founded in 2019 with initial backing from esteemed organisations such as the Rockefeller Foundation, Ceniarth, DOEN Foundation, Shell Foundation, and UK Aid, is determined to inject $150 million into solar projects over the next two years. This renewed financial support will allow the company to accelerate its mission of providing reliable and sustainable power solutions to households and businesses in underserved regions.

The facility agreement, strategically structured by FEI as a construction loan facility, empowers CrossBoundary Energy to scale its investments in tailor-made, fully financed renewable energy solutions for corporate customers. By removing the barriers of upfront capital expenditure and technical risks, this innovative approach ensures that corporate clients can access cost-effective, cleaner, and more dependable power sources. Collaborating closely with its partners, CrossBoundary Energy designs, builds, finances, and maintains renewable energy installations that precisely meet the unique needs of its clients.

The success and credibility of CrossBoundary Energy are underscored by its impressive track record. The company has already delivered a portfolio of over $285 million worth of solar renewable energy assets for renowned clients such as Unilever, Diageo, Rio Tinto, Heineken, and AB InBev. This remarkable achievement reflects the trust the company has garnered within the industry and its strong market position as a financier, commercial owner, and operator of mini-grids.

CrossBoundary to Accelerates Clean Energy Adoption Across Africa

The impact of CrossBoundary Energy's efforts is particularly significant in Sub-Saharan Africa, where approximately 75% of the population lacks access to electricity. Countries like South Sudan, Burundi, Chad, Malawi, Burkina Faso, Madagascar, and Tanzania rank among the least electrified nations globally and stand to benefit greatly from clean energy sources such as solar and wind power. Recognising this immense potential, the World Bank has emphasised the role of mini-grids in providing clean energy to over half a billion people in the region by the end of this decade, given the right policy frameworks.

With these new funds, CrossBoundary Energy is poised to be at the forefront of this transformational shift toward sustainable energy solutions. With its partnerships and collaborations with notable solar companies in Nigeria, Kenya, Ghana, and Rwanda, including Topec, SolarAfrica, PowerGen, Centennial, solarcentury, and soventix, the company has already made significant strides in deploying multiple solar mini-grids. These installations have not only provided electricity to communities but have also catalyzed economic growth and improved the overall quality of life in these regions.

As CrossBoundary Energy embarks on its ambitious plan to invest $150 million in solar projects over the next two years, the recent funding boost which comes a year after its $25 million funding round in June 2022 will undoubtedly accelerate the company's efforts to bridge the energy gap in Sub-Saharan Africa. By leveraging its expertise, financial resources, and commitment to innovation, CrossBoundary Energy is poised to be a driving force in delivering safe, clean, and affordable energy options to millions of people who have long been deprived of this fundamental necessity. Through its sustainable initiatives, the company is not only transforming lives but also paving the way for a brighter and more prosperous future for Sub-Saharan Africa.