$10 Million Junior Equity Venture endorsed by the AfDB Board of Directors from the Sustainable Energy Fund for Africa

By Abdul Rahman Bangura-

Photo Credit: African Development Bank

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- KawiSafi II Fund enables local enterprises to develop and boost climate projects that support vulnerable neighborhoods.

KawiSafi II is a $200 million venture equity fund to take care of acquisition fissures in energy transition, productivity, mobility, and logistics in sub Saharan Africa. It incorporates a $10 million technical subsidy facility to maximize climate impact and assure promising management of environmental, social, and governance risks.

KawiSafi II is a follow-on from KawiSafi Fund I, a $67 million off-grid energy fund inaugurated in 2016, which was aided by the strong sponsor – Acumen Fund. Acumen has over 20 years of experience investing in transformational companies to unravel transnational destitution challenges, comprising renewable and BioLite amongst others.

“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,” noted Amar Inamdar – Managing Director of KawiSafi Ventures. “As the leading development finance institution on the continent, the Bank’s catalytic commitment will leverage investments into breakthrough African start-ups addressing climate change through renewable energy, clean mobility, and other key sectors crucial to achieving our climate goals.”

The KawiSafi Funds are excellent criteria for the patient and risk-tolerant capital pressed for to help thriving African climate businesses strive to spike new markets against the backdrop of a considerable depletion of equity capital in the market.

João Duarte Cunha – Manager of the Bank Group’s Renewable Energy Funds Division, which oversees SEFA, said, “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.”

The African Development Bank’s investment through SEFA in KawiSafi II illustrates its persistent responsibility to promote a just energy transition and combat climate change via strategic cooperation with the private sector and investments in innovative solutions.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent