The African Development Bank Group (AfDB) plans to inject $10 million into the KawiSafi II Fund, marking a significant commitment to support African startups focused on climate solutions for vulnerable communities. The junior equity investment, approved by the AfDB’s Board of Directors, will come from the Sustainable Energy Fund for Africa (SEFA), a financing facility managed by the bank.
This new fund follows the success of KawiSafi Fund I, a $67 million off-grid energy initiative established in 2016. Notable investments from Fund I include companies such as d.light, Bboxx, and BioLite. These companies have made significant strides in off-grid solar solutions and clean energy access across Africa.
João Duarte Cunha, Manager of the AfDB’s Renewable Energy Funds Division, emphasized the KawiSafi II Fund’s role in providing venture and growth capital to African businesses during a crucial phase in the region’s energy transition. The $200 million fund will focus on energy transition, productivity, mobility, and logistics in sub-Saharan Africa. It also includes a $10 million facility for climate impact and ESG risk management.
The AfDB also plans to commit $10.5 million to the Seedstars Africa Ventures I fund in January 2024. This investment will support high-growth, innovative African businesses, helping attract additional capital and expanding the fund’s reach across the continent.
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