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AFDB is Set to Invest $10M into the KawiSafi Fund ll to Support Africa’s Climate Startups
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African Development Bank (AfDB) has approved a $10 million investment in the KawiSafi II Fund. The significant move is to support Africa’s Climate startups.
The investment was approved by the Bank’s Board of Directors and will be allocated from a financing facility managed by the AfDB, Sustainable Energy Fund for Africa (SEFA).
AFDB Invests In KawiSafi ll fund
The KawiSafi II Fund is a $200 million venture equity fund that seeks to address critical investment gaps in energy transition, productivity, mobility, and logistics within sub-Saharan Africa.
The fund also includes a $10 million technical assistance facility designed to maximize climate impact and enhance the management of environmental, social, and governance risks.
The KawiSafi II Fund builds upon the success of its predecessor, the KawiSafi Fund I. It was established in 2016 with a focus on off-grid energy, KawiSafi I raised $67 million and benefited from the expertise of its sponsor, the Acumen Fund.
Acumen boasts over two decades of experience in backing transformative companies that address global poverty challenges, including those in the renewable energy space.
KawiSafi I’s track record includes successful investments in renowned companies like D.light, Bboxx, and BioLite.
AFDB Investment To Drive Breakthroughs In Climate Sector
Amar Inamdar, Managing Director of KawiSafi Ventures, emphasized the importance of the Bank’s investment.
He said, “The AfDB commitment is crucial for achieving our first close and attracting the private capital needed to support Africa’s climate innovators.”
“This investment will drive breakthroughs in renewable energy, clean mobility, and other key sectors vital for achieving our climate objectives.”
Also Read: AfDB and the Fonds d’équipement Communal Set to Fund Sustainable Development Projects in Morocco
João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, highlighted the strategic importance of the fund.
He said, “KawiSafi Fund II represents a critical opportunity to provide venture and growth capital to emerging businesses focused on energy access and transition at a time when such investment is most needed.”
Also, AfDB’s involvement in KawiSafi II reaffirms its dedication to promoting a just energy transition and combating climate change through strategic private-sector partnerships and innovative investment solutions.
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