Energy leaders gathered in Cape Town this week to unveil a bold new fund. The $176 million initiative aims to bring electricity to millions across sub-Saharan Africa.
Zafiri, as the fund is called, targets communities far from traditional power grids. It will provide long-term financing to renewable energy companies operating in underserved areas.
Inspired Evolution, an African climate investment firm, will manage the fund's operations. The firm specializes in green energy projects across the continent.
Major backers include the International Finance Corporation and the African Development Bank Group. The Rockefeller Foundation, MacArthur Foundation, and FirstRand Limited also signed on as founding shareholders.
The launch reflects growing urgency around Africa's energy crisis. Over 600 million people lack electricity access — more than anywhere else on earth.
Ethiopis Tafara, IFC vice president for Africa, stressed the importance of long-term investment. "Connecting millions of Africans to reliable power requires patient capital at scale," he told reporters.
According to him, Zafiri will support distributed renewable energy companies across multiple sectors. Mini-grids, solar home systems, and clean cooking solutions will all receive backing.
The fund could eventually power up to 30 million people, Tafara noted. It will also create jobs and economic opportunities in participating communities.
Zafiri supports Mission 300, a joint World Bank and African Development Bank effort. That initiative targets connecting 300 million sub-Saharan Africans to electricity by 2030.
At least half of Zafiri's capital will focus on mini-grids and solar home systems. Clean cooking technologies will also receive significant investment priority.
The fund launched commercially at $176 million but has bigger plans ahead. Officials aim for a final close of $300 million within the next year.
Long-term ambitions are even more ambitious. Leadership hopes to eventually scale Zafiri to $1 billion in total capital.
Kevin Kariuki chairs power and energy at the African Development Bank. He called distributed renewable energy crucial to closing Africa's electricity gap.
Mini-grids and similar solutions are expanding faster than traditional infrastructure can. This approach allows rapid deployment in remote and rural regions.
Private capital has remained scarce in Africa's off-grid energy sector until now. Most companies struggled to access patient investors willing to fund long-term operations.
Zafiri addresses this directly through patient equity financing models. It removes a major barrier that's prevented distributed energy businesses from scaling.
The fund's diverse investor base demonstrates growing confidence in Africa's energy transition. Development banks, philanthropies, and private firms have united behind one vision.
Implementation begins immediately across multiple sub-Saharan African countries. Regional teams are already identifying promising renewable energy companies for investment.
