Swedfund and the Danish Investment Fund for Developing Countries (IFU) have partnered with Sturdee Energy to boost renewable energy development in Southern Africa, particularly in South Africa, which is highly dependent on coal-based electricity.
This collaboration involves a combined direct equity investment of US $44M, aimed at advancing Sturdee Energy’s initiatives in the region. The investment will drive the development of solar and wind power projects in Southern Africa, addressing the region’s power deficit and supporting the transition away from coal.
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ESAP guidelines
The investment is guided by an Environmental and Social Action Plan (ESAP), emphasizing human rights, labor standards, and sustainable project management throughout the lifecycle. Both Swedfund and IFU aim to address climate change and foster socio-economic development in the region. Sturdee Energy seeks to provide clean, sustainable energy to government utilities, corporations, and industrial clients, thereby supporting economic growth and job creation.
“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.
“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,” commented 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,” concluded Andrew Johnson and James White, Executive Directors of Sturdee Energy.
