Investment vehicle Zafiri has raised US$176 million to finance decentralised energy projects across sub-Saharan Africa, targeting the expansion of off-grid electricity solutions in communities with limited access to power.
The fund, managed by Inspired Evolution, will provide equity financing to renewable energy companies developing mini-grids, solar home systems and clean cooking technologies across the region.
“Zafiri aims to tackle one of the most persistent barriers to energy access by scaling equity investments in distributed renewable energy companies serving communities across sub-Saharan Africa,” said Ghita Benabderrazik, Managing Director of Innovative Finance at the Rockefeller Foundation.
The fundraising round includes backing from major development and financial institutions, including the International Finance Corporation, the African Development Bank, the Rockefeller Foundation, Trade and Development Bank, the Nordic Development Fund, the MacArthur Foundation and FirstRand.
More than half of the capital raised will be directed towards mini-grid systems, off-grid solar solutions and clean cooking initiatives, according to Zafiri’s sponsors.
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The fund aims to help provide electricity connections to more than 10 million people by 2030 and plans to grow its total capital base to $300 million through a final fundraising close expected within the next 12 months.
The investment comes as energy developers across Africa continue to struggle with limited access to long-term equity financing needed to scale operations.
The International Energy Agency has identified the shortage of patient equity capital as a major constraint preventing mini-grid developers and solar home system providers from expanding, particularly in rural areas.
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The agency says longer-term investments with extended return periods will be critical to achieving universal electricity access in Africa by 2035.
Despite abundant renewable energy resources, millions of people across sub-Saharan Africa remain without reliable electricity, making decentralised solutions an increasingly important part of efforts to close the region’s energy gap.
