Africa launches $176m energy access fund to power 30m people

As dusk settled over Cape Town and energy leaders gathered beneath the shadow of Africa’s persistent electricity deficit, a coalition of global development institutions, philanthropies and private investors unveiled a $176 million fund aimed at lighting homes, powering businesses and unlocking economic opportunity for millions across sub-Saharan Africa.

The launch of Zafiri marks a new chapter in the continent’s quest to bridge the energy access gap, bringing long-term capital to communities that have remained beyond the reach of traditional power grids. It is expected to provide long-term equity financing to distributed renewable energy companies operating in underserved communities beyond the reach of traditional electricity grids.

Managed by Inspired Evolution, an African climate investment firm, Zafiri is designed to address one of the most persistent challenges facing the continent’s off-grid energy sector: limited access to patient, long-term capital needed to scale operations and attract additional financing.

Founding shareholders include the International Finance Corporation (IFC), the African Development Bank Group, The Rockefeller Foundation, Trade and Development Bank Group, Nordic Development Fund, the John D. and Catherine T. MacArthur Foundation and FirstRand Limited.

The launch comes as African governments and development partners intensify efforts to tackle energy poverty. More than 600 million people across Africa still lack access to electricity, making the continent home to the largest electricity access deficit globally.

Ethiopis Tafara, IFC vice president for Africa, said the initiative demonstrates the impact that coordinated partnerships can have in addressing Africa’s energy challenges.

“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,” Tafara said.

He noted that by supporting distributed renewable energy companies, the platform would help power homes and businesses while creating jobs and economic opportunities across the continent.

“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,” he added.

Zafiri is positioned as a key private-sector financing vehicle supporting Mission 300, an initiative jointly led by the World Bank Group and the African Development Bank Group to connect 300 million people in sub-Saharan Africa to electricity by 2030.

The vehicle will channel capital into distributed renewable energy businesses and projects, including mini-grids, solar home systems, productive-use energy solutions and clean cooking enterprises. At least half of the platform’s capital is expected to be directed toward mini-grids, solar home systems and clean cooking technologies.

Following its commercial launch at $176 million, Zafiri aims to reach a final close of $300 million within the next 12 months and has a longer-term ambition of scaling to $1 billion.

The African Development Bank described the launch as a timely intervention given the critical role distributed renewable energy is expected to play in expanding electricity access.

Kevin Kariuki, vice president for power, energy, climate and green growth at the African Development Bank, said distributed renewable energy solutions such as mini-grids and solar home systems are projected to account for at least half of all new electricity connections in sub-Saharan Africa by 2030.

He said the platform would provide long-term equity financing needed to scale renewable energy companies and accelerate the objectives of Mission 300.

For Inspired Evolution, the fund represents a new model for mobilising private and development capital to support Africa’s energy transition.

Wayne Keast, managing partner at Inspired Evolution, described Zafiri as an innovative partnership that combines the strengths of multilateral development institutions, development finance institutions, philanthropic organisations and private sector expertise.

He said the platform would help deliver clean and affordable distributed renewable energy solutions while supporting an equitable energy transition across Africa.

The Rockefeller Foundation said its participation reflects efforts to mobilise capital into an underfinanced segment of the energy market.

Ghita Benabderrazik, managing director of innovative finance at the foundation, said Zafiri would help de-risk investment in distributed renewable energy businesses serving communities across sub-Saharan Africa.

She added that the initiative aims to create a more resilient financing ecosystem capable of expanding economic opportunity and supporting sustainable development.

Trade and Development Bank Group also highlighted the importance of increasing risk capital available to renewable energy and clean cooking companies, many of which struggle to secure sufficient equity financing for expansion.

Admassu Tadesse, president and managing director of TDB Group, said the platform would provide much-needed patient capital to support long-term growth while advancing climate-aligned development across member states.

The Nordic Development Fund described the launch as an important milestone in efforts to scale distributed renewable energy across Africa and attract additional commercial investment into underserved energy markets.

Charles Coustan, portfolio manager at the MacArthur Foundation, said expanding access to clean, reliable and affordable energy remains a critical global development priority and that the platform would help accelerate the flow of capital toward addressing the challenge.

FirstRand Limited, the sole commercial bank among the founding investors, said the initiative aligns with its long-term strategy of partnering with development finance institutions and other capital providers to address Africa’s energy needs.

Mary Vilakazi, chief executive officer of FirstRand Limited, said the group was proud to support what she described as a highly innovative initiative aimed at solving one of the continent’s most pressing development challenges.