Shell-based start-up fund receives $ 13 million from Canadian DFI to accelerate clean energy access in Africa - TechCrunch
FinDev Canada has invested $ 13 million in the Energy Entrepreneur Growth Fund (EEGF), which invests in early energy start-up and growth rate in sub-Saharan Africa. Part of the funding will go towards increasing access to clean energy for off - grid homes and businesses in the area.
The $ 120 million EEGF, set up in 2022 by the Shell Foundation - and co - funded by UKaid and the Dutch Entrepreneurship Development Bank FMO, expands financing in the form of debt (catalytic or mezzanine) or equality for businesses in the energy sector. The EEGF is guided by Triple Jump; impact investment manager and advised by Persistent; and climate campaign builder.
FinDev Canada participated in fundraising through 2X Canada, an influential investment facility that drives the economic power of low-income and under-served numbers in sub-Saharan Africa, Latin America and the Caribbean.
FinDev Canada vice president and chief investment officer Paulo Martelli said in a statement that the funding will help accelerate innovation in the clean energy industry following the slowdown of Covid-19.
"The pandemic has cut off electricity in Africa, which was already lagging behind before the health crisis. By increasing EEGF 's ability to invest in this sector, FinDev Canada and its 2X Canada facility are supporting energy companies committed to expanding access to clean and reliable energy for households and businesses. African, leading to inclusive and sustainable growth and the development of millions of lives. he said.
The fund invests in at least half of the companies that specifically address the energy needs of women and entrepreneurs in Africa, and those that offer renewable energy solutions to businesses and businesses. homes. Sub-Saharan Africa is estimated to make up 75% of the world's population without access to electricity and renewable energy solutions could be adopted to close that gap.
"A fair and inclusive energy movement, one that will reduce energy poverty and reduce climate change, requires an understanding of the financial needs of entrepreneurs, on whom we depend to deliver on the world's energy access goals," he said. Shell Foundation executive director Gareth Zahir.-Bill.
“FinDev Canada's investment into the fund will help it expand the supply of flexible financing solutions for entrepreneurs, accelerating access to clean and reliable energy for millions of lives in Africa. ”
Last year the EEGF invested in Baobab + and Yellow, both offering pay - as - you - go solar energy solutions, and Redavia, which designs and installs mobile solar farms for businesses.
Redavia, which has investors in Ghana, Kenya and Tanzania, received a $ 3.7 million mezzanine investment from the fund. The start-up initiative aims to install more than 85 MWp of solar power across the continent. By September last year they had "installed nearly 90 solar units, for 7 MWp of solar capacity."
Yellow, which has operations in Malawi and Uganda and allows households and small businesses to pay for solar systems through installments, received $ 4 million, and Baobab received + $ 2.3 million. Baobab + has operations in Mali, Senegal, Madagascar and Côte d'Ivoire, and plans to enter the markets of Nigeria and the Democratic Republic of the Congo.