FinDev Canada backs African energy fund
FinDev Canada and its 2X Canada facility announced a participation of up to $13 million in the Energy Entrepreneurs Growth Fund (EEGF), which offers catalytic financing and technical assistance to early and growth-stage companies that increase access to clean, safe, dependable, and affordable energy for off-grid households and businesses in sub-Saharan Africa. The EEGF was created in 2019 by Shell Foundation, co-funded with UK aid from the UK government, and FMO, the Dutch entrepreneurial development bank. The use of blended finance will allow EEGF to unlock additional capital, a greater challenge during the Covid-19 crisis, and further its positive impact in improving access to energy and advancing women’s economic empowerment.
This is the first transaction that FinDev Canada makes under the recently launched 2X Canada: Inclusive Economic Recovery, a facility implemented by FinDev Canada and funded by Global Affairs Canada. At least half of the energy companies to benefit from EEGF financing will meet the 2X Challenge criteria. Through its investments, the fund will address the particular energy needs of African women consumers and women business owners. The fund also commits to promoting inclusive practices within its portfolio companies, thus contributing to positive impact on women’s economic empowerment in the region.
“The pandemic has slowed down electrification in Africa, which was already behind before the health crisis, said Paulo Martelli, vice president and chief investment officer of FinDev Canada. By increasing EEGF’s capacity to invest in this sector, FinDev Canada and its 2X Canada facility support energy companies committed to expanding access to clean and reliable energy for African households and businesses, leading to inclusive and sustainable growth and the improvement of millions of lives.”
“Investment manager Triple Jump and advisor Persistent are thrilled to welcome FinDev Canada as a new fund partner, given our alignment not only on climate friendly energy access, BoP client support in LDCs in Africa, but also on gender equality and women economic empowerment,” says Jan-Henrik Kuhlmann, head of sustainable energy at Triple Jump. “FinDev Canada’s investment paired with targeted technical assistance support, will help address the unique needs of women as customers, entrepreneurs and employees in the access to energy sector.”
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