Amar Inamdar, Managing Director of KawiSafi Ventures, lauded the African Development Bank’s (AfDB) $10 million investment as “catalytic,” enabling the fund to reach its initial milestone and attract the necessary capital vital for supporting Africa’s climate innovators.
Empowering Climate Innovators
Inamdar emphasized that the bank’s pivotal investment will amplify funding for inventive African startups addressing climate change through renewable energy, clean mobility, and additional sectors vital for achieving climate objectives.
Crucial Venture and Growth Capital
João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, highlighted KawiSafi Fund II’s significant role in providing essential venture and growth capital to businesses focused on energy access and transition during a critical period.
KawiSafi Fund II’s Target and Expansion
The $200 million fund, successor to KawiSafi Fund I, zeroes in on energy transition, productivity, mobility, and logistics in sub-Saharan Africa, including a $10 million facility dedicated to climate impact and ESG risk management.
Influence of KawiSafi Fund I
KawiSafi Fund I, a $67 million off-grid energy fund initiated in 2016 and backed by Acumen Fund, has notably invested in companies such as d.light, Bboxx, and BioLite.
Impactful Ventures in Renewable Energy
Recent developments among these companies include d.light’s closure of a securitisation multi-currency facility in July, enabling expansion of its PayGo consumer finance offering and facilitating renewable energy access for six million people across Kenya, Tanzania, and Uganda over the next three years.
Strategic Shifts and Growth of Clean Energy
Bboxx, a prominent player in the clean energy sector, has relocated its headquarters from London to Kigali, Rwanda, with ambitious plans to reach 36 million individuals by 2028. This follows a substantial $100 million partnership with Kuwaiti investment firm EnerTech, aimed at broadening their clean energy, clean cooking, smartphones, smart financing, and e-mobility product offerings.
Widening Support for Innovative Businesses
In parallel with the KawiSafi investment, the AfDB is set to commit $10.5 million in January 2024 to Seedstars Africa Ventures I fund, intending to bolster high-growth innovative businesses, attract additional capital, and expand the fund’s presence across Africa while drawing in other investors.
Source: TechPoint