By: Solar quarter

In a significant push to accelerate renewable energy access across Africa, the Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, has executed a $495 million framework agreement with Mauritius-based CrossBoundary Energy (CBE). The deal supports the deployment of distributed renewable energy (DRE) projects in up to 20 African countries, with a focus on enhancing electricity reliability for businesses.

Signed under MIGA’s portfolio-based guarantee structure, the agreement marks a shift from traditional project-by-project insurance to a streamlined, scalable model. This innovative approach allows CBE to rapidly expand operations across approximately 100 commercial and industrial (C&I) solar projects, including in 11 IDA (International Development Association) countries and 4 fragile or conflict-affected states.

MIGA’s guarantees cover risks such as currency inconvertibility and transfer restrictions for a period of up to 15 years. This de-risking mechanism is expected to unlock long-term financing and mobilize greater private capital in historically underserved and high-risk energy markets.

“This innovative portfolio-based approach demonstrates how MIGA is making it faster and easier for investors like CrossBoundary Energy to expand across multiple African markets,” said MIGA Executive Vice President Hiroshi Matano. “We are helping unlock renewable energy investments at scale—particularly in fragile markets—while supporting job creation, resilience, and sustainable growth.”

IDA Private Sector Window–MIGA Guarantee Facility: Up to $61.5 million in first-loss coverage for IDA-eligible countries such as the Democratic Republic of Congo, Guinea, Mali, Madagascar, Malawi, Mozambique, Rwanda, Sierra Leone, Uganda, Tanzania, and Zambia.

Renewable Energy Catalyst Trust Fund: Up to $37.6 million for non-IDA-eligible countries including Côte d’Ivoire, Egypt, Eswatini, Ghana, Kenya, Namibia, Nigeria, Senegal, and South Africa.

The CrossBoundary Energy model offers distributed, reliable, and cost-effective solar solutions tailored for commercial and industrial clients. These power systems reduce operational costs and increase energy security, boosting productivity and economic competitiveness. In Sub-Saharan Africa, where over 75% of firms experience frequent outages—often losing 5–8% of their annual sales—CBE’s services are viewed as critical to unlocking industrial growth.

“Reliable and affordable power supply remains one of the primary constraints on African business productivity,” said Matthew Tilleard, Co-Founder and Managing Partner at CrossBoundary Group. “MIGA’s support at a portfolio level allows us to expand clean energy access across underserved markets.”

To finance the expansion, Standard Bank of South Africa Limited has been appointed lead arranger for up to $300 million in senior debt. Jeanne-Marie Fatti, Senior Vice President of Energy & Infrastructure at Standard Bank, emphasized the bank’s commitment: “Visionary partners like CrossBoundary Energy are addressing Africa’s energy challenge holistically. We are proud to support their growth through innovative, renewable-led solutions.”

CBE and MIGA jointly developed the portfolio-based guarantee approach to address the administrative and financial challenges associated with securing risk insurance for multi-country energy investments. The framework allows for more efficient, large-scale coverage—meeting both investor and lender expectations while expanding clean energy’s footprint across the continent.

The agreement aligns with MIGA’s Mission 300 strategy to mobilize capital for 300 million people through climate-aligned, private sector-led infrastructure. It also reinforces the growing momentum in Africa’s distributed energy space, with 2024 alone witnessing announcements of nearly 6 GW of captive C&I projects and 1.7 GW of wheeling projects.

This partnership signals a turning point in how renewable energy deployment can be scaled across Africa using innovative financial instruments, de-risking tools, and collaborative action.