Swedfund, the Swedish development finance institution, and the Danish Investment Fund for Developing Countries (IFU) have formed a strategic partnership with Sturdee Energy to accelerate the expansion of renewable energy in Southern Africa. This collaboration is a significant step towards reducing the region’s dependence on coal-fired electricity.
Southern Africa is currently grappling with a severe power supply deficit, exacerbated by a lack of access to risk-tolerant capital necessary for renewable energy projects. In response to this challenge, Swedfund and IFU are making a substantial commitment by providing $44 million in direct equity investments to support Sturdee Energy’s ambitious renewable energy initiatives.
Sturdee Energy, an independent power producer (IPP), is dedicated to developing, owning, operating, and investing in renewable energy projects and infrastructure throughout the region. The company’s mission is to promote economic growth and socio-economic development through sustainable energy solutions.
Currently, Sturdee Energy operates 31 megawatts (MW) of solar power installations in Namibia and Botswana. Additionally, the company is in the process of constructing an extra 20MW of solar capacity in South Africa. Beyond these projects, Sturdee Energy is advancing over 200MW of renewable energy projects across four countries, moving them towards financial close.
These new wind and solar power plants are projected to generate more than 600 gigawatt-hours (GWh) of renewable energy annually. This significant output is expected to reduce carbon emissions by nearly 500,000 tonnes each year, contributing to a cleaner and more sustainable energy landscape in Southern Africa.
To ensure the sustainability of these developments, Swedfund and IFU have introduced an Environmental and Social Action Plan (ESAP) for the partnership. This plan emphasizes the importance of integrating human rights and labor standards throughout the lifecycle of the projects, ensuring that the benefits of renewable energy expansion are realized in a socially responsible manner.
