The African Development Bank Group’s Board of Directors has approved a $10 million junior equity investment in the KawiSafi II Fund, aimed at supporting local businesses in creating and expanding climate projects that benefit vulnerable communities. This investment will be channeled through the Sustainable Energy Fund for Africa (SEFA), a catalytic financing facility managed by the Bank Group.
KawiSafi II is a $200 million venture equity fund designed to address investment gaps in sub-Saharan Africa’s energy transition, productivity, mobility, and logistics sectors. The fund also includes a $10 million technical assistance facility to maximize climate impact and improve the management of environmental, social, and governance (ESG) risks.
The KawiSafi II Fund builds on the success of KawiSafi Fund I, a $67 million off-grid energy fund established in 2016 by Acumen Fund. With over 20 years of experience investing in transformative companies that address global poverty, Acumen has successfully invested in companies like D.light, Bboxx, and BioLite through KawiSafi Fund I.
Amar Inamdar, Managing Director of KawiSafi Ventures, emphasized the importance of the Bank’s investment, 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. 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.”
João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, which oversees SEFA, highlighted the importance of the KawiSafi Fund II, noting, “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 in KawiSafi II through SEFA reaffirms its commitment to promoting a just energy transition and combating climate change through strategic partnerships with the private sector and investments in innovative solutions.
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