Swedish development finance institution Swedfund and the Investment Fund for Developing Countries (IFU) have jointly committed $44 million to independent power producer Sturdee Energy.
This partnership aims to address the growing power supply deficit in Southern Africa and enhance the shift toward sustainable energy sources, particularly in South Africa, which is still heavily dependent on coal-fired electricity.
As part of their investment, Swedfund and IFU will provide direct equity to support Sturdee Energy’s growth plans. The company specializes in developing, owning and operating renewable energy projects throughout southern Africa, contributing to the region’s socioeconomic development and energy security.
Sturdee Energy’s current portfolio includes 31 MW of solar power in Namibia and Botswana, with 20 MW under construction in South Africa. The company is working on an additional 200 MW of renewable energy across four countries.
“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,” said Jonas Kolijn, Senior Investment Manager at Swedfund.
The new renewable energy plants set to come online will add over 600 GWh of clean energy and reduce CO2 emissions by nearly 500,000 tons annually. Both Swedfund and IFU have worked with Sturdee Energy to develop an Environmental and Social Action Plan, ensuring the project adheres to strong human rights and labor standards throughout its lifecycle.
