A view of a hybrid mini-grid station in Doma Town, which is mainly powered by solar energy in Doma, Nigeria. A newly created investment vehicle called Zafiri will deploy equity into distributed renewable energy (DRE) companies and projects across Sub-Saharan Africa, including mini-grids, solar home systems, productive-use energy solutions, and clean cooking enterprises.
Image: File
Inspired Evolution has announced the commercial launch of the $176 million (R3.2 billion) blended permanent capital vehicle called Zafiri, which will focus on expanding access to electricity for tens of millions of people across sub-Saharan Africa.
Zafiri’s founding shareholders include IFC, a member of the World Bank Group; the African Development Bank Group (AfDB), including its Sustainable Energy Fund for Africa (SEFA); The Rockefeller Foundation; Trade and Development Bank Group (TDB Group); Nordic Development Fund (NDF); the John D. and Catherine T. MacArthur Foundation; and FirstRand.
Cape Town-based Inspired Evolution, an African climate investment firm, was mandated by the investors to be Zafiri’s investment manager, and it made the announcement at the Africa Energy Forum conference taking place in the city.
Zafiri plans to invest in and support the private sector as part of Mission 300, a joint initiative co-led by the World Bank and the AfDB, with support from The Rockefeller Foundation, the Global Energy Alliance for People and Planet, and Sustainable Energy for All.
The aim of Mission 300 is to expand electricity access to 300 million people in sub-Saharan Africa by 2030. After two years, close to 50 million people have already been provided access to electricity under the program.
Zafiri will deploy equity into distributed renewable energy (DRE) companies and projects across sub-Saharan Africa, including mini-grids, solar home systems, productive-use energy solutions, and clean cooking enterprises.
At least 50% of the platform’s capital is expected to support mini-grids, solar home systems, and clean cooking.
A statement said Zafiri addresses one of Africa’s toughest energy financing gaps by channeling long-term equity into DRE companies, bringing reliable, affordable power to communities beyond the reach of traditional grids.
Following its commercial launch at $176m, Zafiri expects to reach a final close of $300m within 12 months, with a longer-term ambition to scale up to $1bn to accelerate energy access in Africa.
Zafiri is a blended finance vehicle that aims to invest in high-impact projects while maintaining financial sustainability.
FirstRand CEO Mary Vilakazi said they were proud to be the only commercial bank and founding investor in this consortium.
“This highly innovative initiative is in line with FirstRand’s long-term strategy to partner with global development finance institutions and other capital providers to solve Africa’s energy needs,” she said.
IFC vice president for Africa Ethiopis Tafara said Zafiri’s commercial launch delivered on what was promised at the Mission 300 launch - mobilising equity at scale to close a critical development finance gap and accelerate investment into the fast-growing distributed renewable energy (DRE) sector.
“By blending capital and continuing to de-risk these investments, Zafiri will help connect people and businesses, create jobs, and deliver tangible human benefits,” said Tafara.
“DRE solutions, including mini-grids and stand-alone solar home systems, are projected to contribute at least 50% of new connections by 2030… Zafiri is most timely, and its $176 million commercial launch is an important milestone, as it will avail long-term and much-needed equity to scale distributed renewable energy companies,” said African Development Bank Vice President for Power, Energy, Climate and Green Growth, Dr Kevin Kariuki.
Inspired Evolution managing partner Wayne Keast said Zafiri is an innovative multistakeholder partnership, forged under the World Bank’s Mission 300 Initiative, that leverages the positive attributes of multilateral agencies, DFIs, and philanthropic funders, together with private sector agility and competencies.
“Zafiri is core to our vision and mission, which includes the provision of long-term, patient, blended finance mechanisms to accelerate energy access and inclusion for Africa’s underserved communities,” said Keast.
“The Zafiri vehicle represents a much-needed boost to the risk capital of DRE and clean cooking companies that face binding equity capital constraints for their long-term growth, including their limited ability to better leverage long-term debt,” said TDB Group President and Managing Director, Admassu Tadesse.
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