African Development Bank invests in KawiSafi II Fund
African Development Bank invests in KawiSafi II Fund
KawiSafi II is a $200 million venture fund to invest in energy transition, productivity, mobility and logistics in Africa.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
The African Development Bank (AfDB) has approved a $10 million junior equity investment in the KawiSafi II Fund to help local businesses create and expand climate projects that aid vulnerable communities. The approved financing will be deployed from the Sustainable Energy Fund for Africa (SEFA), a catalytic financing facility.
KawiSafi II is a $200 million venture equity fund to address investment gaps in energy transition, productivity, mobility and logistics in sub-Saharan Africa. It includes a $10 million technical assistance facility to maximise climate impact and ensure better management of environmental, social, and governance risks.
KawiSafi II is a follow-on from KawiSafi Fund I, a $67 million off-grid energy fund established in 2016, which benefited from a strong sponsor, Acumen Fund. KawiSafi Fund I invested in companies such as D.light, Bboxx, and BioLite, among others.
“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,” said Amar Inamdar, managing director of KawiSafi Ventures.
João Duarte Cunha, manager of the bank group’s renewable energy funds division, which oversees SEFA, said, “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.”
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here