Inspired Evolution launches $176m Zafiri electricity access vehicle
Zafiri is a blended permanent-capital vehicle focused on expanding access to electricity in Africa.
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Inspired Evolution has announced the $176 million commercial launch of Zafiri, a blended permanent-capital vehicle focused on expanding access to electricity for tens of millions of people across sub-Saharan Africa.
Inspired Evolution, an African climate investment firm, was mandated by the investors to be the investment manager of Zafiri. Founding shareholders include the International Finance Corporation (IFC); the African Development Bank Group, including its Sustainable Energy Fund for Africa (SEFA); The Rockefeller Foundation; Trade and Development Bank Group (TDB Group); Nordic Development Fund (NDF); the John D. and Catherine T. MacArthur Foundation; and FirstRand Limited.
Zafiri will deploy patient equity into distributed renewable energy (DRE) companies and projects across sub-Saharan Africa, including mini-grids, solar home systems, productive-use energy solutions, and clean cooking enterprises. At least 50% of the platform’s capital is expected to support mini-grids, solar home systems, and clean cooking.
“Zafiri represents an innovative multistakeholder partnership, forged under the World Bank’s Mission 300 Initiative, that leverages the positive attributes of multilateral agencies, DFIs, and philanthropic funders, together with private sector agility and competencies. Zafiri is core to our vision and mission which includes the provision of long-term, patient, blended finance mechanisms to accelerate energy access and inclusion for Africa’s underserved communities. We are proud to be the chosen private sector investment manager to implement Zafiri across the region. Underpinned by country compacts, Zafiri will enable clean and affordable DRE solutions in contribution to an African just energy transition,” said Wayne Keast, managing partner at Inspired Evolution.
Ethiopis Tafara, IFC vice president for Africa, commented: “Connecting millions of Africans to reliable power requires patient, long-term capital at scale, and Zafiri, the model IFC developed with our co-investors, demonstrates what partnerships can deliver. By backing private sector distributed renewable energy companies, we are turning ambition into connections - powering homes, enterprises, and opportunity. As these businesses grow, Zafiri will expand access to clean energy for up to 30 million people, while creating jobs and inclusive economic activity across the continent.”
“DRE solutions, including mini-grids and stand-alone solar home systems, are projected to contribute at least 50% of new connections by 2030. Catalysed by the African Development Bank’s SEFA catalytic junior equity, Zafiri is therefore most timely, and its $176 million commercial launch an important milestone, as it will avail long-term and much needed equity to scale distributed renewable energy companies, thereby accelerating the ambition of Mission 300,” said Kevin Kariuki, vice president for power, energy, climate and green growth at the African Development Bank.
“Zafiri is designed to address one of the most persistent barriers to energy access by scaling equity investment in distributed renewable energy companies that serve communities across sub-Saharan Africa,” added Ghita Benabderrazik, managing director of innovative finance at The Rockefeller Foundation. “By bringing catalytic capital to Zafiri, The Rockefeller Foundation aims to help de-risk an underfinanced market, mobilise long-term investment, and contribute to a more resilient financing ecosystem for distributed renewable energy: one that can power livelihoods, expand economic opportunity, and advance inclusive, sustainable development at scale.”
“TDB Group is really pleased to join forces with its MDB strategic partners and others as an equity investor in Zafiri, in support of several renewable energy sub-sectors on the continent. The Zafiri permanent capital vehicle represents a very much needed boost to the risk capital of DRE and clean cooking companies that face binding equity capital constraints for their long-term growth, including their limited ability to better leverage long-term debt, which TDB has already been actively providing as part of the Mission 300 initiative. Our participation in this latest thrust is testament to our deep commitment to injecting patient capital toward inclusive, climate-aligned growth across its Member States,” noted Admassu Tadesse, TDB Group president and managing director.
“NDF celebrates Zafiri’s launch together with the partners as an important milestone to scale up access to distributed renewable energy in Sub-Saharan Africa. Through catalytic financing, Zafiri’s success will help mobilise significant commercial financing into currently under-invested distributed renewable energy sub-sectors with the aim of transforming lives and livelihoods of climate-vulnerable communities,” commented Satu Santala, NDF managing director.
“Expanding access to clean, reliable, affordable energy is a critical global economic development need. We’re excited to collaborate with leading impact investors on this innovative vehicle that will accelerate the flow of capital towards addressing this important challenge,” said Charles Coustan, portfolio manager at the MacArthur Foundation.
“This highly innovative initiative is in line with FirstRand’s long-term strategy to partner with global development finance institutions and other capital providers to solve Africa’s energy needs,” added Mary Vilakazi, CEO of FirstRand.
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