NAIROBI, Kenya- The African Development Bank Group (AfDB) is putting its money where its mouth is when it comes to fighting climate change in Africa.
The Bank has committed $10 million to the KawiSafi II Fund, a venture aimed at supercharging local businesses focused on climate-centric projects in vulnerable communities.
This investment, which was greenlit by the Bank’s Board of Directors, comes from the Sustainable Energy Fund for Africa (SEFA), a financing facility managed by AfDB.
The $10 million injection is expected to help the KawiSafi II Fund reach its initial close, drawing in much-needed capital to support Africa’s climate innovators.
This isn’t just about money – it’s about accelerating the growth of African startups that are tackling climate change through renewable energy, clean mobility, and other crucial sectors.
João Duarte Cunha, who heads the Bank Group’s Renewable Energy Funds Division, stressed the urgency of this investment.
According to Cunha, KawiSafi II is coming in at a pivotal time, offering the venture and growth capital that businesses need to drive energy access and transition in sub-Saharan Africa.
KawiSafi II isn’t starting from scratch. With a target of $200 million, it’s the successor to the KawiSafi Fund I, which was launched in 2016 with $67 million.
Backed by Acumen Fund, KawiSafi Fund I made waves by investing in companies like d.light and Bboxx, both of which are pushing the envelope in clean energy solutions.
The new fund will zero in on energy transition, productivity, mobility, and logistics across sub-Saharan Africa, with a special $10 million facility dedicated to climate impact and ESG risk management.
In a related effort, the AfDB has also committed $10.5 million to the Seedstars Africa Ventures I fund, set to launch in January 2024.
This move is designed to support high-growth businesses, attract additional capital, and expand the fund’s footprint across Africa, further encouraging investor participation.
d.light and Bboxx
d.light, one of the flagship companies from KawiSafi Fund I, recently secured a multi-currency securitization facility to purchase $176 million in receivables across Kenya, Tanzania, and Uganda.
This move is poised to scale up its PayGo consumer finance offering, potentially bringing renewable energy access to six million people in the next three years.
Meanwhile, Bboxx, another key player in the clean energy sector, has made headlines by moving its headquarters from London to Kigali, Rwanda.
Backed by a $100 million partnership with Kuwaiti investment firm EnerTech, Bboxx aims to extend its reach to 36 million people by 2028, offering clean energy, clean cooking, smartphones, smart financing, and e-mobility products.
