Nordic Impact Funds Back Renewable Energy Expansion Across Africa
With its $44 million commitment to African renewable energy firm CrossBoundary, Impact Fund Denmark has followed similar backing by Swedfund and the Danish Investment Fund for Developing Countries.
(Photo: SBR)
HARARE / COPENHAGEN, Oct. 6, 2025 — At the 22nd meeting between African and Nordic countries, held at Victoria Falls in Zimbabwe on October 2, among the key areas of deliberation was renewable energy.
The meeting also sought ways for new financing models aimed at development and sustainable welfare for creating a society equipped to meet future challenges.
The five Nordic nations located in Northern Europe, including Sweden, Denmark, Finland, Norway, and Iceland, have special relations with Africa. These countries have extended support for African liberation movements, with no colonial baggage. In terms of diplomacy, Nordic nations have always adopted policies promoting peace and the defense of human rights in Africa.
The meeting, held under the theme "Enhancing Focus on Technology and Cooperation for Future-Ready Societies," saw the participation of over 20 ministers, along with a number of deputy ministers, permanent secretaries, and senior officials discussing energy exchange and trade ties.
Apart from sustainability, multiple issues of mutual interest to Nordic and African nations, such as economic cooperation in the fields of cutting-edge technology and innovation, were also discussed.
The meeting took place around the same time when Denmark’s Impact Fund backed Nairobi-based renewable energy firm CrossBoundary Energy with $40 million to scale distributed renewables across Africa.
What Draws Nordic Impact Funds to Africa
Reducing Conventional Energy: Continuing the traditional fund allocation by Nordic investment agencies for Africa, Denmark’s Impact Fund Denmark has vowed $40 million to CrossBoundary Energy, infusing fresh capital to expand its on-site solar and battery systems for commercial and industrial, or C&I, clients across Africa.
The way Denmark has achieved 100 percent utilization of renewable energy sources, similar efforts are on to nullify the use of diesel in African countries, to be replaced by renewable energy.
The Danish investment will support the development, construction, and operation of distributed renewable energy projects to provide uninterrupted electricity to businesses unable to rely on national grids.
Green Energy Model: Long-term power purchase agreements, or PPAs, and lease contracts of CrossBoundary are a key catalyst of its business model.
The power is sold at rates below grid tariffs and the total cost of running diesel generators.
Most importantly, the zero-capex model roots out investment barriers, offering clients open access to clean, predictable power without purchasing hardware.
Impact Fund Denmark has categorized the funding as a dual-purpose investment, playing a role in reducing emissions while backing business continuity in regions prone to power outages.
The senior executives at CrossBoundary have said that removing upfront costs allows firms to be operations-oriented while benefiting from fixed energy pricing, performance guarantees, and hassle-free maintenance.
How Nordic Funds Scale African Renewable Energy
In December last year, the Swedish development finance institution Swedfund and the Danish Investment Fund for Developing Countries (IFU) vowed $44 million to independent power producer (IPP) Sturdee Energy to fast-track the foray of renewable energy in Southern Africa.
Known for the development of renewable energy projects across Southern Africa, Sturdee Energy has its core competency in developing, owning, operating, and investing in renewable energy projects and related infrastructure.
The company also supplies energy to government utilities and corporations that are large in terms of size and scale, as well as industrial clients.
In Namibia and Botswana, the IPP operates 31 MW of solar power, besides having constructed 20 MW of solar power in South Africa.
Last year, Sturdee Energy was advancing a portfolio of more than 200 megawatts to financial close across four countries, which are expected to add more than 600 GWh of renewable energy and reduce CO2 emissions by nearly 500 ktCO2 per year.
The cut-out task for this South African Independent Power Producer, or IPP, Sturdee Energy, is to undertake research and development and operate renewable energy projects across Southern Africa. Their core objective is to provide tailored renewable energy solutions for both private and public offtakers while delivering environmental and social benefits.
Similarly, as per the official website of CrossBoundary Energy, it offers fully financed, clean energy solutions that are customized for businesses—an energy strategy developed with long-term gains in mind that is both financially and environmentally sustainable.
Founded in 2011, with a focus on unlocking capital for underserved markets, the CrossBoundary Group has worked across the length and breadth of Africa.
“We have experience working in these markets, which made us realize the difficulties faced by industrial enterprises that relied on expensive and unreliable grid electricity and diesel generators,” said a company statement.
The Danish investment will support the development, construction, and operation of distributed renewable energy projects, providing uninterrupted electricity to businesses unable to rely on national grids.
Inputs from Saqib Malik
Editing by David Ryder
