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CrossBoundary Energy Secures $200 Million to Scale Industrial Renewable Power Across Africa

CrossBoundary Energy (CBE) has secured an additional US$200 million in senior debt to expand its portfolio of industrial renewable energy projects across Africa—strengthening its role in supplying clean, reliable power in a region that still attracts only a small share of global energy investment.

The financing, structured as a second tranche under a mechanism led by Standard Bank, was confirmed last week and is set for deployment in high-demand industrial markets where energy insecurity continues to constrain production and economic growth.

Growing Momentum Following the 2024 Financing Round

This new tranche follows the first debt close in December 2024, which opened the door for broader participation from climate-focused institutions such as Norfund, Impact Fund Denmark, and the Emerging Africa and Asia Infrastructure Fund. These investors back CBE’s model of eliminating upfront energy infrastructure costs for companies and replacing them with long-term power offtake agreements.

Financing momentum accelerated further in July 2025 when the Multilateral Investment Guarantee Agency (MIGA) approved a landmark US$495 million guarantee to protect CBE’s assets from currency risk and transfer restrictions—two of the biggest barriers to private investment in African energy markets.

A Model Built on Fully Financed Renewable Systems

CBE’s strategy centers on delivering turnkey solar and storage systems that industrial clients pay for through consumption rather than capital expenditure. This model has gained traction among mining, manufacturing, and telecommunications companies facing unpredictable grid supply and rising diesel costs, both of which erode profitability.

One of CBE’s flagship projects is a 30-megawatt solar-plus-storage installation under development for the Kamoa-Kakula copper mine in the Democratic Republic of Congo. Once completed, it is expected to provide stable baseload power—reducing shutdown risks, lowering operational costs, and cutting emissions in a region where diesel generators dominate industrial operations.

A Signal of Increasing Lender Confidence

The scale of the new debt facility suggests that international lenders are becoming more comfortable financing decentralized renewable infrastructure in markets previously viewed as too high-risk.

However, the financing gap remains significant. According to IRENA, sub-Saharan Africa attracted only 2 percent of global renewable energy investment in 2024—less than one-tenth of what analysts estimate the region must mobilize annually to meet medium-term electricity needs.

Investment continues to concentrate in relatively mature markets such as Kenya, South Africa, Egypt, and Morocco, while frontier regions in West and Central Africa rely heavily on concessional financing and guarantee structures like the one CBE secured from MIGA.

Industrial Competitiveness at Stake

Reliable energy remains a critical determinant of industrial competitiveness in Africa. In mining hubs such as Zambia and the DRC, the sector represents more than 30 percent of export revenues, yet frequent outages force companies to spend as much as 20 percent of operating budgets on alternative power.

In manufacturing markets including Nigeria and Ghana, grid instability forces factories to run diesel generators for 30 to 60 percent of operational hours, inflating costs and challenging sustainability goals. Renewable projects financed under CBE’s model have the potential to reverse part of this trend by embedding long-term cost predictability and emissions reduction into supply chains.

A Critical Test for Africa’s Energy Transition

Africa’s broader energy transition hinges on whether capital can reach commercially viable renewable projects at scale—and whether these projects demonstrate performance strong enough to attract additional private investment.

CBE’s latest financing round positions the company among the leading developers proving that renewable power in frontier markets can be both bankable and scalable when supported by robust risk protections and operational guarantees.

If its project pipeline advances as planned, CBE’s installations could serve as influential benchmarks for lenders evaluating similar opportunities across the continent. For now, the US$200 million secured represents a significant step toward linking private capital with Africa’s industrial energy needs—offering companies cleaner, more reliable alternatives to fragile grids and carbon-intensive fuels.