$176 Million Fund Launched to Expand Energy Access Across Africa

Known as Zafiri, the blended finance vehicle will provide long-term investment to distributed renewable energy companies operating across the region.

A new $176 million investment platform aimed at expanding electricity access across sub-Saharan Africa has officially launched at the Africa Energy Forum in Cape Town, marking a major step toward bringing reliable energy to millions of underserved households and businesses.

Known as Zafiri, the blended finance vehicle will provide long-term investment to distributed renewable energy companies operating across the region. The initiative is managed by African climate investment firm Inspired Evolution and backed by a coalition of international development institutions, foundations and private-sector investors.

Founding shareholders include the International Finance Corporation (IFC), the African Development Bank Group, The Rockefeller Foundation, Trade and Development Bank Group, Nordic Development Fund, the MacArthur Foundation and FirstRand Limited. The platform is expected to play a significant role in supporting Mission 300, a global initiative that aims to expand electricity access to 300 million people across sub-Saharan Africa by 2030.

Focus on Renewable Energy Solutions Beyond National Grids

Zafiri will direct patient equity capital into businesses providing distributed renewable energy solutions, particularly in communities where traditional electricity networks remain limited or unavailable.

Investments will support mini-grid projects, solar home systems, productive-use energy technologies and clean cooking enterprises. More than half of the platform's capital is expected to be allocated to mini-grids, stand-alone solar systems and clean cooking initiatives.

The fund has been designed to address one of the biggest challenges facing Africa's energy sector: the shortage of long-term equity financing for renewable energy companies serving remote and underserved populations.

By helping these businesses grow, the initiative aims to increase access to affordable electricity, support local enterprises, create jobs and stimulate economic activity in communities that have historically lacked reliable energy services.

Ambitious Growth Plans Backed by Global Partners

Following its launch at $176 million, Zafiri plans to reach a final close of $300 million within the next year. The platform's long-term goal is to scale to $1 billion, creating a larger pool of capital capable of accelerating energy access across the continent.

Supporters of the initiative say distributed renewable energy solutions are expected to account for at least half of all new electricity connections in sub-Saharan Africa by 2030, making investment in the sector increasingly important.

Officials from the African Development Bank, IFC, The Rockefeller Foundation and other founding partners described the launch as a major milestone for Africa's energy transition. They noted that the platform combines development finance, philanthropic capital and private-sector expertise to help reduce investment risks while expanding access to clean and affordable energy.

Zafiri is expected to improve energy access for up to 30 million people over time, helping households, schools, healthcare facilities and small businesses gain access to reliable power while supporting broader economic development across Africa.