IFC and AfDB Appoint Inspired Evolution to Lead $1B Zafiri Energy Fund for Africa
Zafiri seeks to bridge this gap by injecting long-term equity into such companies, empowering them to scale operations, develop innovative technologies, and reach last-mile communities.
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- Ivory Coast
In a landmark step toward accelerating universal energy access in Africa, the International Finance Corporation (IFC), a member of the World Bank Group, the African Development Bank Group (AfDB), and their founding partners have appointed Inspired Evolution as the investment manager for Zafiri — a new pan-African investment vehicle designed to expand electricity and clean cooking access for tens of millions of people across sub-Saharan Africa.
The announcement underscores Zafiri’s central role in Mission 300 (M300), a joint initiative between the World Bank Group and AfDB that aims to provide first-time electricity access to 300 million Africans by 2030.
Addressing Africa’s “Missing Middle” in Energy Financing
Despite substantial global investment in renewable energy, distributed renewable energy (DRE) companies — which provide off-grid and mini-grid solutions in remote regions — remain chronically underfinanced. Traditional commercial lenders often perceive them as too risky or small-scale, creating what experts call the “missing middle” of energy finance.
Zafiri seeks to bridge this gap by injecting long-term equity into such companies, empowering them to scale operations, develop innovative technologies, and reach last-mile communities.
“One of the key challenges slowing Africa’s energy transition is the lack of equity financing for distributed energy companies—those expanding power generation and improving access for millions,” said Ethiopis Tafara, IFC’s Vice President for Africa. “Zafiri addresses this ‘missing middle’ by offering long-term equity to these providers, helping scale innovative business models.”
According to IFC, the initiative is expected to benefit over 30 million people and generate significant employment opportunities across the continent.
Inspired Evolution to Lead Investment Strategy
Founded in 2007 and headquartered in Cape Town, Inspired Evolution is a leading Africa-focused investment firm specializing in clean energy and climate solutions. The company has financed more than 10 gigawatts (GW) of renewable power generation, supported 29 companies across 18 countries, and manages over $850 million through its suite of Evolution funds.
“We are honored to partner with IFC, AfDB and global investors to manage Zafiri, a vehicle uniquely designed to close the equity financing gap for distributed energy solutions across Africa,” said Wayne Keast, Co-Founder and Managing Partner of Inspired Evolution. “We will focus on building and scaling high-impact businesses that can deliver clean, affordable and reliable energy while driving inclusive and climate-resilient growth.”
Founding Partners and Strategic Vision
Zafiri’s founding partners represent a broad coalition of international development financiers committed to Africa’s energy transition:
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International Finance Corporation (IFC) – World Bank Group’s private sector arm promoting investment and sustainable growth.
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African Development Bank Group (AfDB) – Africa’s premier development finance institution.
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The Rockefeller Foundation – Championing innovative financing for inclusive development.
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Trade and Development Bank Group (TDB Group) – Supporting regional integration and renewable energy financing.
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Nordic Development Fund (NDF) – Catalyzing climate action through concessional capital.
The AfDB will leverage resources from its Sustainable Energy Fund for Africa (SEFA) to complement IFC’s capital.
“By combining AfDB’s capital—including our SEFA fund—with IFC and partners, Zafiri will inject much-needed risk capital to take the DRE sector to the next level,” said Kevin Kariuki, AfDB’s Vice President for Power, Energy, Climate and Green Growth. “It will help scale commercial maturity, expand operational footprints, and drive transformative impact.”
A New Model for Energy Investment
Zafiri is structured as a permanent capital investment vehicle, designed to provide flexible, long-term equity and attract commercial co-investors. It leverages concessional junior equity to de-risk private sector participation, thereby mobilizing larger pools of private capital for renewable and decentralized energy projects.
The fund will begin operations in early 2026, with an initial capitalization target of $300 million and plans to scale up to $1 billion.
“Zafiri enables the speed and scale needed to meet the ambitious targets of Mission 300,” said Satu Santala, NDF’s Managing Director. “Our junior capital is expected to catalyze significant commercial investments into energy access for millions of people.”
Global Endorsements from Development Partners
The initiative has garnered strong support from global impact investors.
“The Rockefeller Foundation is proud to support Inspired Evolution as it accelerates energy access across Sub-Saharan Africa,” said Ghita Benabderrazik, the foundation’s Director of Innovative Finance. “Following our anticipated $10 million investment in Zafiri, we remain committed to closing the equity gap for distributed renewable energy solutions that power livelihoods and drive productive use.”
Admassu Tadesse, President and Managing Director of the TDB Group, emphasized that Zafiri complements the bank’s existing renewable energy initiatives:
“We are pleased to join forces with this strong group of investors to inject equity into small-scale DRE providers. Through electrification and clean cooking, these enterprises can catalyse sustainable development in their communities.”
Accelerating Energy Access and Climate Action
Zafiri’s launch is strategically aligned with Africa’s Agenda 2063 and the UN Sustainable Development Goal 7 (SDG7), which calls for universal access to affordable, reliable, and sustainable energy. The fund is also expected to contribute to climate resilience, economic inclusion, and gender equality, particularly by supporting women-led enterprises in the DRE space.
By focusing on off-grid and decentralized energy models, Zafiri will help countries reduce dependence on fossil fuels and expand clean cooking solutions — a crucial intervention for health, environment, and gender empowerment.
Over its lifespan, Zafiri aims to facilitate electricity and clean cooking access for more than 30 million people, supporting local job creation, private sector development, and inclusive economic growth.
“Through our commitment to the M300 platform, we are deepening support for impactful solutions like Zafiri,” said IFC’s Tafara. “This initiative is a model for how blended finance can unlock private capital and accelerate Africa’s clean energy transformation.”
A Catalyst for Africa’s Energy Future
The launch of Zafiri reflects growing momentum behind Africa’s distributed energy revolution, where smaller, localized systems are bridging the gap left by traditional grid infrastructure. With strong institutional backing and experienced management, Zafiri is poised to become a blueprint for sustainable energy investment across the continent.
By blending development finance with market-driven innovation, the fund represents a new era of African-led energy transformation—one that prioritizes people, planet, and prosperity.
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