Swedfund and IFU invest in renewable energy development in Southern Africa

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.

Southern African countries have a major power supply deficit and a lack of risk willing capital for renewable energy investments. To support the green transition and the development of increased energy capacity from renewable sources, Swedfund and IFU are equally committing a total of USD 44 million in direct equity investments to support Sturdee Energy's growth initiatives.

Sturdee Energy specialises 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 core 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 20MW of solar power in South Africa. The company is advancing a portfolio of more than 200 megawatts to financial close across four countries. The new wind and solar power plants add more than 600 GWh of renewable energy and reduce CO2-emissions by nearly 500,000 tonnes per year.

Swedfund and IFU have developed an Environmental and Social Action Plan (ESAP) to further strengthen the work around human rights and labour standards inclusively throughout the project lifecycle.

— This investment is a good strategic fit for Swedfund as it contributes to climate mitigation through replacing coal power with renewable power such as solar and wind, says Jonas Kolijn, Senior Investment Manager at Swedfund.

— IFU’s investment in Sturdee Energy is a perfect match with our ambition to support the green transition and improve living conditions in developing countries, especially in Africa. We believe that Sturdee Energy is a solid company with a professional management playing an important role in increasing renewable energy supply, which is a driver for sustainable economic growth, said Thomas Hougaard, Senior Vice President in IFU.

— At Sturdee Energy we believe alignment starts with a common view of the future, but goes beyond this to the agreement of each step in the path to realise this future. With IFU and Swedfund’s investment in our company, we welcome two investors who are willing to walk this path with us. We look forward to what we can achieve together and extend our thanks to everyone who made this transaction possible, commented Andrew Johnson and James White, Executive Directors of Sturdee Energy.


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.

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.