African Development Bank’s $10 Million Investment in KawiSafi II Fund: A Strategic Boost for Renewable Energy Innovation in Africa

The African Development Bank Group (AfDB) has approved a significant $10 million junior equity investment in the KawiSafi II Fund, aimed at bolstering climate-related initiatives in Africa. This investment, drawn from the Sustainable Energy Fund for Africa (SEFA), will support local businesses in developing and expanding projects that benefit vulnerable communities across the continent.

KawiSafi II, a $200 million venture equity fund, seeks to address critical investment gaps in energy transition, productivity, mobility, and logistics within sub-Saharan Africa. The fund also includes a $10 million technical assistance facility designed to maximize climate impact and enhance the management of environmental, social, and governance risks.

This initiative follows the success of KawiSafi Fund I, a $67 million off-grid energy fund launched in 2016. Fund I, supported by the Acumen Fund, has made significant investments in transformative companies such as D.light, Bboxx, and BioLite.

Amar Inamdar, Managing Director of KawiSafi Ventures, emphasized the importance of the Bank’s investment, stating, “The African Development Bank’s commitment is crucial for achieving our first close and attracting the private capital needed to support Africa’s climate innovators. This investment will drive breakthroughs in renewable energy, clean mobility, and other key sectors vital for achieving our climate objectives.”

João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, highlighted the strategic importance of the fund, saying, “KawiSafi Fund II represents a critical opportunity to provide venture and growth capital to emerging businesses focused on energy access and transition at a time when such investment is most needed.”

The African Development Bank’s involvement in KawiSafi II reaffirms its dedication to promoting a just energy transition and combating climate change through strategic private sector partnerships and innovative investment solutions.