AfDB Invests $10 Million in KawiSafi II Fund to Boost Climate Projects in Africa

KawiSafi II is a $200 million venture equity fund designed to address investment gaps in energy transition, productivity, mobility, and logistics across sub-Saharan Africa.

The African Development Bank Group (AfDB) has approved a $10 million junior equity investment in the KawiSafi II Fund, a significant move to support local businesses in creating and expanding climate initiatives that benefit vulnerable communities. This investment will be sourced from the Sustainable Energy Fund for Africa (SEFA), a catalytic financing facility managed by the Bank Group.

KawiSafi II is a $200 million venture equity fund designed to address investment gaps in energy transition, productivity, mobility, and logistics across sub-Saharan Africa. It includes a $10 million technical assistance facility aimed at maximizing climate impact and enhancing the management of environmental, social, and governance risks.

This commitment from the African Development Bank is expected to leverage additional investments into pioneering African start-ups focused on renewable energy and other climate-related innovations. KawiSafi II follows the successful KawiSafi Fund I, a $67 million off-grid energy fund established in 2016 with support from Acumen Fund. KawiSafi Fund I invested in transformative companies like D.light, Bboxx, and BioLite, demonstrating the effectiveness of patient and risk-tolerant capital in driving progress.

Amar Inamdar, Managing Director of KawiSafi Ventures, highlighted the importance of the Bank’s investment: “The African Development Bank’s catalytic role in KawiSafi II is crucial for reaching our first close and attracting the substantial private capital needed to support Africa’s climate innovators. This investment will drive breakthrough solutions in renewable energy, clean mobility, and other key sectors critical to achieving our climate goals.”

João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, emphasized the timeliness of the investment: “KawiSafi II provides an opportunity to channel more venture and growth capital into emerging businesses focused on energy access and transition, addressing a significant shortage of equity capital in the market.”

The African Development Bank’s investment in KawiSafi II underscores its commitment to a just energy transition and combating climate change through strategic partnerships and support for innovative solutions in Africa.