Kenya-based Crossboundary Energy Access (CBEA), a mini-grid infrastructure fund, has raised $25 million from ARCH Emerging Markets Partners limited, Bank of America, and Microsoft Climate Innovation Fund to back renewable energy projects across the continent.

In this round, the ARCH made $10 million equity investment as Microsoft and Bank of America injected $15 million mezzanine financing -- a debt that can be turned into equity.

The CBEA, a subsidiary of the investment group Crossboundary, said in a statement that the new funding will unlock an additional $25 million in senior debt, helping it secure capital to the tune of $50 million, which will also be used to finance near-term solar powered mini-grids.

The fund, which was set up in 2019 with the initial backing of the Rockefeller Foundation, Ceniarth, DOEN Foundation, Shell Foundation and UK Aid, plans to inject $150 million in solar projects over the next two years.

As a financier, commercial owner and operator of mini-grids, the CBEA has helped households and businesses access clean energy in multiple countries across Africa.

CrossBoundary Energy Access, managing director, Humphrey Wireko said, “This is a crucial step for CrossBoundary Energy Access towards unlocking the private and public capital needed to scale the mini-grid sector. We look forward to mobilizing this investment to bring the projects in our pipeline to life, and providing power to African homes and businesses through these distributed renewable assets.”

The CBEA has worked with a number of solar companies in Nigeria, Kenya, Ghana, and Rwanda, including Topec, SolarAfrica, PowerGen, Centennial, solarcentury and soventix to deploy multiple solar mini-grids.

Sub-Saharan Africa accounts for 75% of the world’s population with no access to electricity. Countries like South Sudan, Burundi, Chad, Malawi, Burkina Faso, Madagascar and Tanzania are among some of the least electrified countries in the world, and could benefit from clean energy from solar or wind.