IFC backs Acumen clean energy vehicle
The IFC has approved an investment in Acumen’s Hardest to Reach initiative.
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The International Finance Corporation (IFC) has approved an investment in Acumen’s Hardest to Reach (H2R) initiative to activate markets for clean and affordable energy in sub-Saharan Africa.
“IFC’s investment in Acumen’s H2R initiative underscores our commitment to addressing the critical energy access gap in sub-Saharan Africa, where nearly 600 million people lack basic electricity,” says Makhtar Diop, managing director of the IFC. “Initiatives like this one can help to catalyse off-grid solar markets in African countries, encouraging more international companies to expand into them, and supporting local companies to sustainably and efficiently scale up their operations.”
The Acumen H2R initiative will support off-grid solar companies through flexible, impact-linked debt and patient capital investment.
"Acumen’s Hardest-to-Reach initiative is a vital step toward solving energy poverty for communities often overlooked in the climate transition. For too long, we’ve under-invested in these areas and underestimated their potential. Hardest-to-Reach opens the door to a real pathway out of energy poverty,” said Jacqueline Novogratz, Acumen's founder and CEO. “Since its launch, H2R has disbursed $10 million across six countries. With IFC’s partnership, we can scale this impact and move closer to clean energy access for all.”
IFC plans to invest up to $25 million from its own account in the Acumen H2R initiative. To help Acumen de-risk private capital investors in the project and lower the overall cost for the borrowers, IFC also intends to mobilise up to $20 million from the IDA Private Sector Window Blended Finance Facility.
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