The African Development Bank Group (AfDB) is bolstering its support for climate-focused startups in Africa by committing $10 million to the KawiSafi II Fund. This investment, drawn from the Sustainable Energy Fund for Africa (SEFA), will empower local businesses to develop and expand projects that address climate challenges, particularly within vulnerable communities.
This strategic move, approved by the AfDB’s Board of Directors, has been lauded by Amar Inamdar, Managing Director of KawiSafi Ventures, as a significant catalyst for the fund’s growth. He emphasized that this investment will be instrumental in attracting further capital and providing crucial support to innovative African startups tackling climate change through initiatives such as renewable energy and clean mobility.
João Duarte Cunha, Manager of the AfDB’s Renewable Energy Funds Division, underscored the critical role of KawiSafi Fund II in providing essential venture and growth capital to businesses operating within the energy access and transition sectors. This $200 million fund, succeeding its predecessor, KawiSafi Fund I, is specifically designed to address energy transition, enhance productivity, and improve mobility and logistics across sub-Saharan Africa. Notably, the fund incorporates a dedicated $10 million facility for climate impact assessment and environmental, social, and governance (ESG) risk management.
KawiSafi Fund I, a pioneering $67 million off-grid energy fund established in 2016, boasts a successful track record of investments in prominent companies like d.light, Bboxx, and BioLite. d.light, a leading provider of off-grid solar solutions, recently secured a significant multi-currency facility, enabling it to scale its PayGo consumer finance offering and expand access to renewable energy to millions across Kenya, Tanzania, and Uganda.
Bboxx, a prominent player in the clean energy sector, has strategically relocated its headquarters to Kigali, Rwanda, reflecting its commitment to expanding its reach across Africa. This move is further solidified by a substantial partnership with Kuwaiti investment firm EnerTech, aimed at scaling the delivery of clean energy, clean cooking solutions, smartphones, smart financing, and e-mobility products.
Beyond the KawiSafi investment, the AfDB is demonstrating its commitment to fostering African innovation through a separate $10.5 million investment in Seedstars Africa Ventures I. This investment aims to nurture high-growth businesses, attract additional capital, and solidify the fund’s presence across the African continent.
