By Wallace Mawire
Konexa, a UK-based energy developer and investor, Climate Fund Managers (“CFM”), a climate-focused investment manager and Norfund, the Norwegian development finance institution, have signed a Development Funding Agreement (“DFA”) to support the next phases of Konexa’s renewable energy expansion in Nigeria.
The agreement will enable the development of a solar PV plant and new and strengthened grid infrastructure to connect two Nigerian Breweries Plc (“NBPlc”) sites in Lagos and Enugu State 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 (“C&I”) clients, while strengthening the distribution grids around client sites to benefit wider electricity consumers. Once operational, the project is expected to offset approximately 30,000 tonnes of CO₂ emissions annually, support 100 construction jobs, and create 35 permanent roles.
The partners will jointly invest USD 3.6 million, with CFM’s EU-supported blended finance facility Climate Investor One (“CIO”), contributing 50%, and Norfund and Konexa each contributing 25%. Together, these commitments are expected to unlock approximately USD 80 million in further investments for construction at financial close, expected in the second half of 2025.
Nigeria has faced decades of under-investment in renewable energy generation and grid infrastructure. As a result, access to reliable electricity remains limited, and many businesses rely on expensive, polluting diesel and gas generators. The government’s Vision 30:30:30 aims to increase renewable energy to 30% of total electricity generation by 2030.
Darron Johnson, Regional Head of 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, 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 USD 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.”
Hans Essaadi MD/CEO Nigerian Breweries said: “We are excited to move towards a more reliable and sustainable energy source in our operations. This partnership underscores our commitment to reducing carbon emissions, lowering operational costs, and achieving our net zero ambition by 2030, which aligns with our business strategy and ‘Brew a Better World’ sustainability agenda.”
The new project builds on the first phase – a USD 18 million investment announced in March 2024 and co-funded by CFM, the European Union, and Microsoft’s Climate Innovation Fund – which launched Konexa’s renewable trading platform and delivered renewable energy to two NBPlc sites in Kaduna State. Grid and storage upgrades in the next phase will enable full power delivery to these sites under the existing Power Purchase Agreement.
Konexa is a Sub-Saharan Africa-focused developer and investor specialising in renewable energy generation, electricity distribution, last-mile reticulation, and off-grid energy solutions. Konexa’s management team has in excess of 30 years of experience working in the investment and development of energy generation, transmission and distribution infrastructure, and technology.
Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Owned and funded by the Norwegian Government, Norfund is the Government’s most important tool for strengthening the private sector in developing countries and reducing poverty. Norfund’s committed portfolio amounts to USD 3.6 billion, with investments across Sub-Saharan Africa, South/Southeast Asia, and Latin America. Additionally, Norfund manages the Norwegian Climate Investment Fund, which focuses on reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production.
Climate Fund Managers (CFM) is a climate-focused blended finance investment manager operating across Africa, Asia and Latin America. CFM raises and deploys blended climate finance funds, working in partnership to deliver climate-resilient initiatives at scale and pace. CFM’s funds are supported by public and private sector organisations, with public capital deployed strategically to balance risk and mobilise private sector capital.
CFM manages two USD 1bn EU-supported emerging market infrastructure funds focused on renewable energy, water, sanitation and oceans infrastructure and has multiple funds under development targeting energy transition, green hydrogen, renewables and power transmission. CFM’s funds utilise a combination of development, equity, debt, and guarantee instruments, enabling investments across the project lifecycle from development to construction and operation. Established in 2015, CFM is a joint venture between the Dutch development bank FMO and Sanlam InfraWorks of the Sanlam Group of South Africa, with offices in The Hague, Cape Town, Singapore, Windhoek and Bogota.
CFM is a manager of alternative investment funds and has obtained an AIFMD license from the Dutch Authority for the Financial Markets (Autoriteit financiële markten) pursuant to section 2:65 of the Dutch Act on Financial Supervision (Wet op het financieel toezicht). CFM is included in the public register maintained by the AFM on its website under license number 15004367. CFM is the appointed fund manager of Climate Investor One, Climate Investor Two and Climate Investor Three. The Construction Equity Funds of Climate Investor One, Climate Investor Two and Climate Investor Three are registered Alternative Investment Funds with the AFM.
The European Union (EU) is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit. The EU has contributed EUR 98.2 million to CIO as part of the Global Gateway, the European strategy for sustainable and trusted infrastructure for people and the planet that will mobilise up to EUR 300 billion of investments for high-quality projects globally, taking into account the needs of partner countries and ensuring lasting benefits for local communities. The total EU contribution to CFM-managed funds is EUR 178 million to date plus a EUR 205 million EFSD+ guarantee, making them the largest public investor in CFM operations.
