Africa GreenCo has raised $21.5 million in a third close, securing additional capital from existing shareholders the Private Infrastructure Development Group (PIDG) and Impact Fund Denmark (IFDK), alongside new investor Sanlam Alternative Investments.

PIDG and IFDK have committed an additional $11.5 million to the regional energy trader and intermediary off-taker. The investment follows Sanlam Alternative Investments’ entry as a shareholder, bringing the total raised in the third close to $21.5 million.

PIDG’s latest investment was made through its project development arm, InfraCo, and follows previous support for Africa GreenCo through technical assistance, project development and guarantees.

Africa GreenCo operates as an intermediary off-taker for renewable energy independent power producers (IPPs), buying and trading electricity across multiple markets. The model is designed to provide payment security to power projects while reducing the reliance of individual projects on a single utility or buyer.

The company became a member of the Southern African Power Pool (SAPP) in late 2021 and holds licences in Zambia, Zimbabwe, Namibia and South Africa. It has traded more than 1.4 TWh of electricity so far this year.

“There is no stronger testament to the faith in a business than to see investment from both new and existing shareholders,” said Pug Bennet, Founder and Group CFO of Africa GreenCo.

Bennet said the additional capital, alongside facilities provided by GuarantCo and the European Commission under its EFSD+ programme, would allow the company to expand its role in financing energy infrastructure across the region.

IFDK has backed Africa GreenCo since its first capital raise and in 2025 helped mobilise a €50 million guarantee facility for the company.

Thomas Hougaard, Managing Director and Co-Head of Green Energy and Infrastructure at IFDK, said the guarantee facility helped Africa GreenCo attract additional private capital, including Sanlam, and expand its activities in Southern Africa.

Sanlam’s participation brings an African institutional investor into Africa GreenCo’s shareholder base.

“Africa GreenCo occupies the part of the energy value chain that determines whether new power generation is ultimately delivered,” said Mark Moorhouse, Executive Head of Infrastructure Finance at Sanlam Alternative Investments.

He said Africa requires creditworthy and commercially viable market infrastructure to mobilise domestic capital for its energy transition.

PIDG said the latest investment will support the next phase of Africa GreenCo’s growth and its efforts to expand renewable energy trading across the region.

“By scaling its successful model to rapidly transform the region’s renewable energy landscape, Africa GreenCo’s work aligns well with PIDG’s mandate of mobilising infrastructure finance,” said Omar Jabri, PIDG Head of Business Development for Africa at InfraCo.

Together with GuarantCo’s support under the European Commission-funded EFSD+ programme, the new equity investments are expected to strengthen Africa GreenCo’s liquidity and risk-bearing capacity.

Africa GreenCo said this will enable it to support up to 900MW of renewable energy power purchase agreements and provide payment security intended to improve the bankability of new power projects.