Swedfund and the Danish Investment Fund for Developing Countries (IFU) have partnered with Sturdee Energy to enhance the expansion of renewable energy in Southern Africa, focusing primarily on South Africa, a country heavily reliant on coal-fired electricity.
Southern African countries have a power supply deficit and lack the required capital to take on the risks associated with renewable energy investments.
To support the green transition and increase energy capacity from renewable sources, Swedfund and IFU are each committing $22 million, totalling $44 million in direct equity investments to support Sturdee Energy’s growth initiatives.
Sturdee Energy specializes in developing renewable energy projects across Southern Africa, aiming to support economic growth and socio-economic development through sustainable energy solutions.
As an independent power producer (IPP), Sturdee Energy’s operations include developing, owning, operating, and investing in renewable energy projects and related infrastructure. The company supplies energy to government utilities, large corporations, and industrial clients.
Sturdee Energy currently operates 31 megawatts of solar power in Namibia and Botswana and is constructing an additional 20MW of solar power in South Africa. The company is advancing a portfolio of more than 200 megawatts toward financial close across four countries.
The new wind and solar power plants will generate over 600 GWh of renewable energy annually, reducing CO2 emissions by nearly 500,000 tonnes.
Swedfund and IFU have also developed an Environmental and Social Action Plan (ESAP) to strengthen human rights and labour standards throughout the project lifecycle.
“This investment is a 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, Swedfund’s senior investment manager.
“IFU’s investment in Sturdee Energy aligns with our ambition to support the green transition and improve living conditions in developing countries, especially in Africa. We believe Sturdee Energy is a solid company with a professional management team playing an important role in increasing renewable energy supply, which is key to sustainable economic growth,” said Thomas Hougaard, senior vice president at IFU.
“At Sturdee Energy, we believe alignment begins with a shared vision of the future, but goes beyond that to agreeing on the steps required to achieve it. With IFU and Swedfund’s investment in our company, we welcome two partners who are committed to walking this path with us. We look forward to what we can accomplish together and extend our thanks to everyone who made this transaction possible,” said Andrew Johnson and James White, executive directors of Sturdee Energy.
