UK Support Drives Africa-Focused Climate Fund to Achieve US$200M First Close

The Helios Climate, Energy Access, and Resilience (CLEAR) Fund has successfully achieved its first close, securing approximately US$200 million in anchor investments from eight leading institutions. Among the key investors are PIDG company InfraCo Africa, the UK Foreign, Commonwealth and Development Office (FCDO), and British International Investment (BII).

The CLEAR Fund, managed by Helios Investment Partners, is positioned to become the largest Africa-focused climate fund, with an ultimate target size of US$400 million. This initial fundraising was significantly bolstered by catalytic backing from the United Kingdom, enabling the fund to attract investments for African businesses dedicated to climate mitigation and adaptation.

The fund’s first close received commitments from several prominent climate investors, including the European Investment Bank, the Emerging Markets Climate Action Fund (advised by EIB and managed by Allianz Global Investors), the Dutch Development Bank, the Swiss Investment Fund for Emerging Markets (advised by ResponsAbility Investments AG), and British International Investment, the UK’s development finance institution.

Helios Investment Partners, the largest Africa-focused private investment firm, will begin deploying the capital immediately, with a focus on supporting and scaling African climate champions. The fund will target five key areas: green energy solutions, climate-smart agriculture and food, green mobility and logistics, recycling and resource efficiency, and digital and financial climate enablers.

Research commissioned by MOBILIST indicates that sub-Saharan Africa’s renewable energy market represents a potential investment opportunity of $193 billion by 2031. Despite this, Africa currently attracts only 3% of global energy investment, according to the International Renewable Energy Agency.

UK Minister for Development Anneliese Dodds emphasized the UK government’s commitment to climate leadership, highlighting the CLEAR Fund as a pioneering initiative to invest in mid-sized African companies focused on reducing carbon emissions and enhancing climate resilience. She praised the fund as an example of UK innovation in mobilizing climate finance for Africa, contributing to global efforts to mitigate the climate crisis.

Gilles Vaes, CEO of InfraCo Africa, described the fund’s launch as a significant milestone, both for CLEAR and for African growth businesses seeking to address the climate crisis. He noted that CLEAR would unlock essential access to finance and provide exit routes for climate entrepreneurs, aligning with global efforts to combat climate change.

Christopher Chijiutomi, Managing Director and Head of Africa at BII, expressed his enthusiasm for partnering with Helios Investment Partners to support the growth of African companies and reinforce BII’s commitment to Africa’s green transition. He highlighted the fund’s role in driving innovation and creating new opportunities for a resilient and prosperous future in Africa.

Ross Ferguson, who leads the MOBILIST program at the FCDO, underscored the importance of overcoming Africa’s climate financing gap. He emphasized MOBILIST’s role in partnering with Helios Investment Partners and InfraCo Africa Investment Ltd to mobilize commercial capital for addressing Africa’s climate mitigation and adaptation needs.