Swedfund and IFU invest in renewable energy development In South Africa

Swedfund and 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 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 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 20 megawatts 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 labor 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. 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 professional management playing an important role in increasing renewable energy supply, which is a driver for sustainable economic growth,” said Jonas Kolijn, Senior Investment Manager at Swedfund.

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 realize 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,” said Andrew Johnson and James White, Executive Directors of Sturdee Energy.