AfDB invests $10m in African climate projects

The African Development Bank Group’s (AFDB) approved a $10 million junior equity investment in the KawiSafi II Fund to support climate projects in sub-Saharan Africa.

This financing, sourced from the Sustainable Energy Fund for Africa (SEFA), aims to help local businesses create and expand initiatives benefiting vulnerable communities.

KawiSafi II, a $200 million venture equity fund, addresses investment gaps in energy transition, productivity, mobility, and logistics within the region.

It includes a $10 million technical assistance facility to enhance climate impact and manage environmental, social, and governance risks.

KawiSafi II follows KawiSafi Fund I, a $67 million off-grid energy fund established in 2016, which was supported by Acumen Fund. The first fund successfully invested in companies such as D.light, Bboxx, and BioLite.

Amar Inamdar, Managing Director of KawiSafi Ventures, emphasised that the bank’s investment is crucial for achieving a first close and attracting private capital to support Africa’s climate innovators.

João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, highlighted that KawiSafi II provides vital venture and growth capital at a critical time for energy access and transition.

This investment reflects the African Development Bank’s commitment to advancing a just energy transition and combating climate change through strategic partnerships and innovative solutions.

Attribution: The African Development Bank Group (AFDB)

Subediting: M. S. Salama