- The African Development Bank Group (AfDB) is set to commit a $10 million junior equity investment to the KawiSafi II Fund to support local businesses in building and expanding climate-focused projects targeted at vulnerable communities.
- The investment, approved by the Bank's Board of Directors, will be allocated from the Sustainable Energy Fund for Africa (SEFA), a financing facility managed by the AfDB.
Amar Inamdar, Managing Director of KawiSafi Ventures, described the AfDB's investment as “catalytic” in helping the fund reach its first close and attracting the capital necessary to support Africa’s climate innovators.
Inamdar stated that the bank’s catalytic investment will boost funding for innovative African start-ups tackling climate change through renewable energy, clean mobility, and other essential sectors for meeting climate goals.
João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, noted that KawiSafi Fund II offers crucial venture and growth capital to businesses in energy access and transition during a critical period.
The $200 million fund, a successor to KawiSafi Fund I, targets energy transition, productivity, mobility, and logistics in sub-Saharan Africa, and includes a $10 million facility for climate impact and ESG risk management.
KawiSafi Fund I, a $67 million off-grid energy fund established in 2016 and backed by Acumen Fund, has invested in companies such as d.light, Bboxx, and BioLite.
d.light, provides off-grid solar solutions, and recently closed a securitisation multi-currency facility in July that will purchase $176 million of receivables in Kenya, Tanzania, and Uganda. This will scale up its PayGo consumer finance offering and enable six million people across the three countries to access renewable energy over the next three years.
Bboxx, a key player in the clean energy sector, has relocated its headquarters from London to Kigali, Rwanda, and aims to reach 36 million people by 2028. This move follows a $100 million partnership with Kuwaiti investment firm EnerTech to expand clean energy, clean cooking, smartphones, smart financing, and e-mobility products.
In addition to the KawiSafi investment, the AfDB will commit $10.5 million in January 2024 to Seedstars Africa Ventures I fund. This investment is designed to support high-growth innovative businesses, attract additional capital, expand the fund's presence across Africa, and attract other investors.
