The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, has signed a $495 million guarantee agreement with CrossBoundary Energy Holdings. The operation covers the risk of currency non-convertibility and transfer restrictions, and is part of a strategy to deploy distributed energy solutions across the African continent.
A portfolio mechanism to accelerate deployments
The structure set up by MIGA is based on a portfolio approach, designed to streamline the issuance of guarantees for around one hundred projects across nearly twenty African countries. Among these markets are eleven countries covered by the International Development Association (IDA), as well as four states considered fragile or affected by conflict. The portfolio architecture allows CrossBoundary Energy to rapidly expand its operations and mobilize financing from various partners.
MIGA’s guarantee, with a term of up to fifteen years, aims to strengthen the financial viability of projects in environments where currency and fund transfer risks are major obstacles. The chosen structure relies on a balanced allocation between pilot projects and larger-scale operations, allowing coverage to be adjusted according to the evolution of local needs.
Financial arrangements and regional partnerships
In parallel with the guarantee, CrossBoundary Energy announced the closing of a $60 million subordinated loan in collaboration with Standard Bank South Africa. This financing supports the construction of a 223-megawatt-peak (MWp) solar power plant with 526 megawatt-hours (MWh) of storage capacity for the Kamoa-Kakula mining site in the Democratic Republic of the Congo. This loan complements a $141 million senior financing granted by Standard Bank in 2024 as part of the regional expansion of CrossBoundary’s operations.
The projects covered by the guarantee encompass a range of African markets, taking into account financing access constraints and regulatory specificities. The structuring of the guarantees addresses currency market volatility while providing investors with greater visibility on the security of their financial flows.
Sectoral issues and the evolution of energy models
According to the World Bank, around 75% of African industrial companies are exposed to recurring power outages, with an average impact estimated between 5% and 8% of annual sales. The emergence of distributed energy solutions led by CrossBoundary Energy addresses a growing need for alternatives to the traditional thermal model, particularly in industrial and mining areas.
The collaboration between MIGA, CrossBoundary Energy, and local financial partners reflects a broader context of multiplying partnerships among international institutions, private operators, and regional banks to support the transformation of African energy infrastructure. The growing demand for long-term guarantees underscores the importance of risk mitigation and the optimization of capital flows in developing markets.
The diversity of projects included in this portfolio, the variety of target markets, and the nature of the guarantees in place raise questions about the adaptability of financing models to the realities of the African landscape, in the face of structural constraints and fragmented national energy ecosystems.
