The Overseas Private Investment Corporation (OPIC), a United States Government agency, has provided 600 million shillings (~$5.86 million) to CrossBoundary Energy, a Nairobi-based company which funds commercial and industrial solar in East Africa.
In a release CrossBoundary Energy stated, “We’re humbled that the OPIC has recognized our investment platform for commercial and industrial solar in Sub-Saharan Africa, CrossBoundary Energy, as a pioneer in the provision of solar energy across the continent. The debt financing from OPIC, allows us to extend the provision of affordable, cleaner and more reliable energy across Sub-Saharan Africa and bolster the mission of Power Africa.”
According to a report in Business Daily Africa, “The fresh capital is a debt secured by expected earnings from upcoming projects as well as earnings from past projects such as the Garden City Mall (Nairobi) solar installation, Unilever Tea Kenya (Kericho), Unilever Ghana, Guinness Ghana, The Coca-Cola Bottling Company of Ghana and Bralirwa Brewery in Gisenyi, Rwanda.”
The report quoted, OPIC head Ray Washburne stating that the funds will enable CrossBoundary Energy to implement six projects at various corporate sites in Kenya, Rwanda and Ghana producing a total of 5.75 MW.
CrossBoundary co-managing partner Matthew Tilleard hailed OPIC’s commitment saying it will help the identified companies reduce reliance on the national grid and access affordable solar power that is environmental-friendly.
Prior to this, in September 2018, OPIC committed $25 million in financing to the Solar Energy Transformation Fund LLC, which will provide loans to companies developing off-grid solar products and solutions for the millions of people in Sub Saharan Africa and Asia who lack access to electricity.
In June 2018, OPIC signed a $5 million loan guarantee with India’s IndusInd Bank. The money will support Grameen Impact, a non-bank financial institution (NBF) backed by Grameen Capital India (GII) in its focus on the growth of local small and medium enterprises.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.