Climate Fund Managers in Nigerian renewable energy deal
Climate Fund Managers and Norfund are funding the next phase of Konexa’s renewable energy expansion in Nigeria.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
Climate Fund Managers, a climate-focused investment firm, and Norfund, Norway’s development finance institution, have signed a funding agreement to support the next stage of UK-based power developer Konexa’s renewable energy rollout in Nigeria.
The agreement will enable the development of a solar PV plant and new and strengthened grid infrastructure to connect two Nigerian Breweries sites in Lagos and Enugu states to renewable electricity supply. It will also support the continued rollout of Konexa’s private renewable energy trading platform to a broader base of commercial and industrial clients, while strengthening the distribution grids around client sites to benefit wider electricity consumers.
The partners will invest a total of $3.6 million, with 50% of the funding coming from Climate Investor One – CFM’s blended finance facility backed by the EU – and the remaining split equally between Norfund and Konexa.
Together, these commitments are expected to unlock approximately $80 million in further investments for construction at financial close, expected in the second half of 2025.
Darron Johnson, regional head for Africa at Climate Fund Managers said: “This agreement is a major step in scaling the renewable energy platform we’ve built in partnership with Konexa. The European Union’s early support helped unlock private capital for the first phase of the project, and we expect Norfund’s catalytic funding to do the same for the next phases. It’s a clear example of how blended finance can deliver impact at scale in emerging markets like Nigeria, where access to electricity remains a critical issue.”
Birgit Edlefsen, senior vice president for renewable energy at Norfund said: “This partnership reflects Norfund’s commitment to scale renewable energy infrastructure in Nigeria and to contribute to long-term social, environmental and economic impact. We see Konexa’s business model as an innovative and impactful solution, addressing the country`s sector challenges. We are excited to join forces with Konexa and CFM.”
Pradeep Pursnani, CEO of Konexa said: “We’re grateful for the continued support of CFM and pleased to welcome Norfund to our partnership. This agreement reflects years of collaboration and progress in building a bankable, scalable model for renewable energy in Nigeria, and replicating across other markets in sub-Saharan Africa. With this new funding, Konexa has secured over $100 million to scale our delivery. We can now take the next step in helping the commercial sector access reliable, affordable power, decarbonise and demonstrate how the private sector can help solve Nigeria’s power challenge.”
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here