Swedfund and the Danish Investment Fund for Developing Countries, IFU, have partnered with Sturdee Energy to accelerate the expansion of renewable energy in Southern Africa, with a primary focus on South Africa, a country heavily reliant on coal-fired electricity.
Swedfund, the Swedish government’s development financier, and IFU, the Danish Investment Fund for Developing Countries, have joined forces to accelerate renewable energy development in Southern Africa. Together, they are investing USD 44 million in direct equity to support Sturdee Energy’s growth, with a particular focus on advancing clean energy solutions in South Africa, where coal-fired electricity dominates the energy mix.
Southern Africa faces significant power supply challenges and limited access to capital for renewable energy investments. This partnership seeks to bridge these gaps by driving the green transition and increasing renewable energy capacity.
Sturdee Energy, a leading independent power producer (IPP) in the region, develops, owns, and operates renewable energy projects and infrastructure. The company currently manages 31 megawatts (MW) of operational solar capacity in Namibia and Botswana and is constructing an additional 20MW in South Africa. With over 200MW of projects nearing financial close across four countries, Sturdee Energy’s initiatives aim to deliver more than 600 gigawatt-hours (GWh) of renewable energy annually and reduce carbon emissions by nearly 500,000 tonnes each year.
This investment also includes the development of an Environmental and Social Action Plan (ESAP) to ensure human rights and labor standards are upheld throughout the project lifecycle.
“This investment is a good strategic fit for Swedfund as it contributes to climate mitigation by replacing coal power with renewable energy, such as solar and wind,” said Jonas Kolijn, Senior Investment Manager at Swedfund.
Echoing this sentiment, Thomas Hougaard, Senior Vice President at IFU, added, “Sturdee Energy aligns perfectly with our ambition to support the green transition and improve living conditions in developing countries, especially in Africa. We believe the company’s professional management and innovative projects are driving sustainable economic growth.”
Andrew Johnson and James White, Executive Directors of Sturdee Energy, expressed their enthusiasm: “At Sturdee Energy, we believe alignment starts with a shared vision for the future and continues through every step of realizing it. With Swedfund and IFU’s investment, we welcome two partners committed to walking this path with us. We extend our thanks to everyone who made this transaction possible.”
About Sturdee Energy
Sturdee Energy is a South African Independent Power Producer (IPP) focused on developing and operating renewable energy projects across Southern Africa. Their mission is to provide tailored renewable energy solutions for both private and public offtakers while delivering environmental and social benefits. Sturdee Energy has operations in South Africa, Botswana and Namibia and a track record of delivering over 650MW of operational projects.
About IFU
IFU – the Investment Fund for Developing Countries is a Danish impact investor contributing to green, just and inclusive societies as well as supporting the Sustainable Development Goals. IFU provides risk capital to companies operating in developing countries across Africa, Asia, Latin America and parts of Europe. Investments are made on commercial terms in the form of equity, loans and guarantees. IFU has co-invested in over 1,300 companies in more than 100 developing countries and emerging markets. Capital under management is EUR 2.1 billion. Read more at www.ifu.dk
About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector. Swedfund’s investments contribute to the creation of decent jobs and increased access to essential products and services such as electricity and food. Swedfund is a long-term investor and is additional and catalytic through its investments and by mobilising private capital. At the end of 2023, Swedfund had 73 portfolio companies. The company has around 100 employees based in Stockholm, Nairobi and Abidjan.
