IFC discloses $120m Zafiri investment
The Mauritius vehicle will invest in distributed renewable energy companies across sub-Saharan Africa.
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The International Finance corporation (IFC) has disclosed an investment of up to $120 million in Zafiri Investment Vehicle, an entity to be established in Mauritius.
The vehicle will serve as a permanent capital vehicle investing patient equity in companies operating distributed renewable energy solutions in Sub-Saharan Africa. The vehicle aims to support electricity and clean cooking access for at least 30 million people over its life.
The vehicle will be managed by an investment manager that has not yet been appointed.
Zafiri is targeting an initial capitalisation of $300 million, comprising $150 million in senior equity and $150 million in junior equity.
Subject to performance and subsequent capital needs in the market, Zafiri may raise an additional $300 million of equity, most likely from commercial investors. The vehicle is ultimately targeting $1 billion in net asset value through organic growth within 10–15 years.
Interesting to see where this is going. Feels less like capital chasing growth and more like capital making growth possible in places it normally wouldn’t.