The World Bank’s Multilateral Investment Guarantee Agency (MIGA) has signed a $495 million guarantee agreement with CrossBoundary Energy Holdings to support the development of distributed energy solutions across nearly 20 African countries, the institutions announced.
The portfolio guarantee covers risks related to currency non-convertibility and transfer restrictions and is structured to accelerate the rollout of around 100 energy projects across markets including 11 International Development Association (IDA) countries and four fragile or conflict-affected states.
“This innovative portfolio approach enables us to reach countries that would otherwise be difficult to serve,” said Hiroshi Matano, Executive Vice President of MIGA. “It streamlines the approval of guarantees for distributed energy projects and contributes to development and climate goals.”
The guarantee, which has a tenor of up to 15 years, is designed to improve the financial viability of projects facing macroeconomic risks in emerging markets. It allows for flexibility in coverage, balancing smaller pilot installations with larger-scale energy infrastructure tailored to local demand.
Alongside the MIGA guarantee, CrossBoundary Energy has secured a $60 million subordinated loan from Standard Bank South Africa to finance the construction of a 223-megawatt-peak solar facility with 526 MWh of battery storage for the Kamoa-Kakula copper mining project in the Democratic Republic of the Congo. The financing complements a $141 million senior loan package closed in 2024 with the same lender.
“The support from MIGA and Standard Bank allows us to continue scaling distributed renewable energy across Africa and bring stable, lower-cost power to industrial customers,” said Pieter Joubert, CFO of CrossBoundary Energy. “It’s a strong signal of investor confidence in the role of clean energy for Africa’s growth.”
According to the World Bank, about 75% of African industrial firms experience frequent power disruptions, resulting in sales losses of 5% to 8% annually. The new project pipeline aims to address this reliability gap by deploying solar and storage-based systems that provide alternatives to diesel or grid power, particularly in energy-intensive sectors like mining and manufacturing.
The initiative reflects a broader push among multilateral institutions, private developers, and regional banks to expand clean energy financing across Africa. Rising demand for long-term guarantees highlights the ongoing challenge of managing investment risks in markets characterized by economic volatility and evolving regulatory environments.
