AfDB Commits $10 Million to KawiSafi II Fund to Boost Clean Energy in Sub-Saharan Africa

Abidjan, Ivory Coast, August 14, 2024 – The African Development Bank Group (AfDB) has announced a $10 million junior equity investment in the KawiSafi II Fund, a $200 million venture equity fund dedicated to advancing clean energy initiatives across sub-Saharan Africa. This investment, sourced from the Bank’s Sustainable Energy Fund for Africa (SEFA), aims to bridge investment gaps in the region’s energy transition, productivity, mobility, and logistics.

KawiSafi II is a follow-up to the KawiSafi Fund I, established in 2016 with a capital of $67 million. The original fund made significant strides in supporting off-grid energy companies, investing in firms like D.light, Bboxx, and BioLite. The success of these investments highlighted the need for continued support, leading to the creation of the KawiSafi II Fund. This new fund includes a $10 million technical assistance facility designed to enhance climate impact and improve the management of environmental, social, and governance risks.

Amar Inamdar, Managing Director of KawiSafi Ventures, emphasized the importance of AfDB’s involvement, stating, “The African Development Bank’s investment into KawiSafi II, our innovative climate fund, is catalytic for helping us reach a first close and attract the significant private capital that is urgently required to support Africa’s climate innovators.”

The KawiSafi Funds are instrumental in providing patient and risk-tolerant capital, crucial for the growth of African climate businesses striving to enter new markets despite the region’s equity capital shortages. The Bank’s support for KawiSafi II is part of a broader strategy to promote a just energy transition in Africa, aligning with global climate goals and the New Deal on Energy for Africa.

João Duarte Cunha, Manager of AfDB’s Renewable Energy Funds Division, which oversees SEFA, remarked, “The KawiSafi Fund II presents an opportunity to avail more venture and growth capital to emerging businesses linked to energy access and energy transition, at a time when such capital is most needed in the market.”

This investment underscores AfDB’s ongoing commitment to combating climate change and fostering sustainable development through strategic partnerships and investments in innovative clean energy solutions.

KawiSafi Ventures is a pioneering investment fund dedicated to addressing Africa’s dual challenges of climate change and energy poverty. The fund operates at the intersection of climate action and energy access, aiming to deliver clean, affordable, and reliable energy to underserved populations across the continent, particularly in East Africa. By investing in companies developing decentralized, renewable energy solutions, KawiSafi is working to transform the energy landscape for millions.

KawiSafi’s mission is to substantially impact energy access in Africa by investing in innovative companies that provide decarbonized, distributed energy infrastructure. The fund aims to reach over 10 million people, focusing on low-income communities, and to displace over a million tons of carbon. Through these efforts, KawiSafi is contributing to alleviating energy poverty while playing a critical role in mitigating the long-term impacts of climate change.

KawiSafi Ventures was created by Acumen, a globally recognized leader in impact investing, with a track record of investing over $115 million in companies that tackle some of the most pressing challenges of global poverty. Acumen’s vision for KawiSafi was to unlock the potential of off-grid renewable energy as a faster, more cost-effective, and environmentally sustainable way to provide power to Africa’s energy-poor populations than traditional grid expansion.