12 October 2021: Lendable Inc. ("Lendable" or the "Firm"), a leading emerging market fintech credit provider, is targeting a ground-breaking $100 million closed-ended fund focused on emerging and frontier market fintech investments.

The Lendable MSME Fintech Credit Fund (the "Fund") is designed to unlock access to financial services for over 150,000 Micro, Small and Medium Enterprises (MSMEs), providing investors with high impact exposure to important markets and the potential of high uncorrelated returns.

This Fund provides credit to African and Asian fintech companies, who in turn offer fair credit facilities to MSMEs. These same MSMEs are the engines of wealth creation, financial inclusion, and economic growth in these regions, yet historically have had limited access to fair credit and financial services.

Backed by leading impact and development financial institution (DFI) investors, the Fund today has soft closed a $49 million investment from DFC, EMIIF (DFAT), Calvert Impact Capital, Ceniarth, BIO, FMO and FSD Africa (FSDAi). Another $20 million is on track to close in the fourth quarter and the fund is expected to hard close above $100 million in 2022. This is a five-year blended finance closed-ended Luxembourg Reserved Alternative Investment Fund (RAIF), with FSDAi and EMIIF providing the first loss capital tranche.  

Combining West Coast technology with Emerging Market needs, Lendable's proprietary Risk Engine analyses live borrower data from its investee fintech CRMs, opening-up an unparalleled level of granularity across the entire loan book. It is this level of transparency, both on an individual loan and portfolio basis, that enhances loan underwriting and allows for more effective and efficient risk management. This technology has already proven its predictive power, by accurately forecasting the impact of adverse weather, election unrest, COVID-19 lockdowns, and other local events.

The Lendable MSME Fintech Credit Fund is Lendable's fourth fund and with the soft close takes the Firm's overall committed capital to over $200 million. Since inception (October 2016) to 31 August 2021, Lendable has delivered an annualised net return of 14.32% to investors.

"We have had an amazing response to this Fund and have brought on board an impressive slate of leading impact investors and DFIs who back our approach," commented Daniel Goldfarb, co-Founder of Lendable. "Through our fintech investments, we are providing essential working capital for MSMEs that enables off-grid customers to buy energy products and opens the door to innovative digital banking services to consumers. It is about making a high impact difference."

Chris Wéhbe, CEO of Lendable adds, "We are incredibly proud of our track record in delivering genuine impact and consistent high returns. With our additional fund raising we can grow our committed capital, which will allow us to expand our reach into new markets, where we have a targeted pipeline of investment opportunities."

Marnix Monsfort, Director Financial Institutions, FMO, added, "Emerging market fintech investment has a direct and highly important impact on regional development. Sadly, all too often, quality firms struggle to scale due to a lack of adequate, tailored capital. FMO is excited to partner with Lendable as its proposition directly addresses this issue by bringing new capital to the table combined with their strong record of delivering competitive risk-adjusted returns for investors."

Algene Sajery, Vice President of the Office of External Affairs and Head of Global Gender Equity Investments, DFC, concluded, "Our investment in the Fintech Credit Fund will help catalyze the next wave of commercial investment into emerging market fintech companies. Development finance institutions like DFC can play an outsized role in attracting different types of capital with different risk appetites to the sector. By supporting transformative fintech companies, DFC and our partners can achieve greater impact while expanding access to finance for underserved communities – particularly women – in emerging economies."

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About Lendable: Lendable is a leading debt finance provider to fintech companies across frontier and emerging markets that create access to new financial products and services for un- and under-banked populations. Lendable finances fintech companies that facilitate consumer and MSME credit, productive asset finance, payments, remittances, and digital marketplaces. From its offices in Nairobi, London, and Singapore, and using its proprietary technology and data, Lendable directly originates, structures, underwrites, and monitors all transactions. To date, Lendable has disbursed over $180m to fintechs in over nine countries.

• 1.3 million people connected to decentralized power
• Across 9 countries in Sub-Saharan Africa
• Impacting 6.5 million lives

6 October 2021: ENGIE Energy Access (EEA) is delighted to announce that within 1 year of integrating its decentralized energy businesses, it has considerably expanded its customer base and is now delivering safe and reliable solar energy to 6.5 million people in Sub-Saharan Africa.

EEA has acquired approximately 200,000 new customers across its 9 markets of operation in Africa throughout 2021, despite the challenges that COVID-19 created – bringing its customer base to more than 1.3 million. Key 2021 milestones achieved to date include a growth in customers in Uganda to 600,000, Zambia to 250,000, Benin to 150,000, and Mozambique to 50,000.

In April 2021, EEA began gradually rolling out its new solar home system (SHS) customer brand, MySol, replacing the Fenix Power and Mobisol brands. With MySol, EEA offers the widest range of PAYGo SHS throughout Africa and caters to all kinds of customers, from off-grid families lighting up with clean energy for the first time, to entrepreneurs running businesses of all sizes.

EEA has equipped 13 villages with its ENGIE PowerCorner mini-grids to date, comprising 3,000 households and 200 businesses. In the past year, it has successfully strengthened the mini-grid pipeline, securing over 180 additional projects – including 60 mini-grids approved in Zambia and 11 more in Benin. EEA is focused on continuing to build out the pipeline with 3 mini-grids under construction in Benin, Nigeria and Uganda, and more pilots on the way.

“I am pleased with the excellent results we have achieved within the first year of integrating our decentralized energy solutions companies. We have strengthened synergies between our solar home system and mini-grid businesses by decreasing costs, gaining in operational efficiencies and relying on strong digital tools, such as our PAYGo platform,” said Gillian-Alexandre Huart, CEO of ENGIE Energy Access.

“We have widened our approach from inclusiveness, to dedicating more efforts into productive usage. We are now at a stage where we provide a full range of complementary solutions: strong SHS offerings and a continuously expanding mini-grid business that is instrumental to reaching higher tier capacities and offering higher tier services. I am confident that we are well on track to impacting 20 million lives by 2025.”

Achieving access to larger funding will be key to EEA meeting its ambitious mission of impacting 20 million lives by 2025. EEA reached its first million customers in part due to the support of partners such as the European Union, and the Swedish and US governments.

Universal electrification is the seventh of the United Nations Sustainable Development Goals that the global community has committed to achieve by 2030. ENGIE is confident that universal access to energy is achievable in the foreseeable future, through smart investments in a combination of national grid extension, solar home systems and mini-grids.

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About ENGIE Energy Access: ENGIE Energy Access is one of the leading Pay-As-You-Go (PAYGo) and mini-grids solutions providers in Africa, with a mission to deliver affordable, reliable and sustainable energy solutions and life-changing services with exceptional customer experience. The company is a result of the integration of Fenix International, ENGIE Mobisol and ENGIE PowerCorner. It develops innovative, off-grid solar solutions for homes, public services and businesses, enabling customers and distribution partners access to clean, affordable energy. The PAYGo solar home systems are financed through installments from $0.19 per day and the mini-grids foster economic development by enabling electrical productive use and triggering business opportunities for entrepreneurs in rural communities. With over 1,700 employees, operations in 9 countries across Africa (Benin, Côte d’Ivoire, Kenya, Mozambique, Nigeria, Rwanda, Tanzania, Uganda and Zambia), over 1.3 million customers and 6.5 million lives impacted so far, ENGIE Energy Access aims to remain the leading clean energy company, serving millions of customers across Africa by 2025. For more information, visit: https://engieenergyaccess.com/.

30 September 2021: The German government will contribute €100 million to the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), affirming its commitment to efforts to tap Africa’s renewable energy potential and drive its transition to clean energy sources.

The announcement came during the United Nations High-Level Dialogue on Energy, held in New York on 24 September as part of the UN General Assembly.  

The funding will go to unlock private sector investment in green-baseload projects, a SEFA priority focus. Specifically, it will support technical assistance and investment in power generation, transmission and distribution to increase penetration of renewable power in African grids. The funding follows Germany’s initial contribution to SEFA of €50 million, made in 2020.

Norbert Barthle, Parliamentary State Secretary of the German Ministry for Economic Cooperation and Development, said during the High-Level Dialogue: “We need to accelerate the global energy transition. This requires the rapid phasing out of all fossil fuels and a massive expansion of renewable energy. The time to act is now.”

The financing aligns with the G20 Compact with Africa launched during Germany's tenure of the G20 Presidency. The Compact promotes macroeconomic, business and financing reform to attract more private investment in Africa.  

Dr. Daniel Schroth, the Bank’s Acting Director for Renewable Energy and Energy Efficiency, said, “Germany’s new contribution is a major boost towards SEFA’s capitalization target of $500 million. It is also recognition of the catalytic role SEFA has been playing in accelerating Africa’s energy transition and supporting clean energy access solutions.”

SEFA is a multi-donor special fund that aims to unlock private sector investments that contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa strategy and Sustainable Development Goal 7. SEFA has received contributions from the Government of Denmark, Germany, Italy, Norway, Nordic Development Fund, Sweden, Spain, United Kingdom and United States.

30 September 2021: FMO, NEoT Offgrid Africa (NOA) and Winch Energy Limited have invested c. US$12 million in mini-grid projects in Uganda and Sierra Leone, contributing to their global ambition to build the largest portfolio of mini-grids in Sub-Saharan Africa, and reach a portfolio worth US$100 million.

Thanks to this project, 49 villages in Sierra Leone and Uganda will be equipped with off-grid and remotely controllable solar solutions – Remote Power Units (RPU) – that will supply power to nearly 60,000 people. The RPU’s will be designed and manufactured by Winch Energy through their assembly facility in Sicily, Italy. In a second phase, 6,000 portable batteries will be deployed in these villages to serve people who live too far from the power unit. At the same time, partnerships with telecom operators will be established to guarantee Internet access for households.

Installation of the project has already started with the RPU’s for the first 13 villages shipped to Uganda. All 25 RPU’s are expected to arrive in Uganda before the end of 2021. An additional 12 village power plants are also already operational in Sierra Leone and providing customers with clean energy. The Uganda sites are expected to be operational in early 2022, while all 24 sites in Sierra Leone will be operational by Q2 2022.

This project contributes directly to the achievement of the Sustainable Development Goals (SDGs) set by the United Nations, including among others:

• Accessible and clean energy (SDG7) by electrifying villages which currently have a limited access to electricity mainly derived from fossil fuels;
• Climate Action (SDG13) by promoting power generation from solar energy and contributing to reduce greenhouse gas emissions.
• Decent work and economic growth (SDG8) by supporting local employment with at least 65 local permanent jobs created and many more during the construction phase.
• Poverty alleviation (SDG1), good health and well-bring (SDG3) and quality education (SDG4) through connecting businesses, schools and health centers to reliable and clean electricity
• Effective public-private and civil society partnerships (SDG17 “Partnerships for the goal”) with the involvement of both Uganda and Sierra Leone governments, international agencies as well as private sector actors.

Winch Energy IPP Holdings Limited (WIPP), where NOA is the main shareholder, is the new investment platform for those projects. FMO, the Dutch entrepreneurial development bank, has arranged a syndicated facility where FMO (through the Access to Energy Fund) and the Renewable Energy Performance Platform (REPP) – managed by Camco Clean Energy (Camco) - will lend to WIPP a first tranche of c. US$ 4 million for the portfolio of mini grids in Uganda and Sierra Leone. A second tranche of up to US$ 6 million is also included in the facility to finance future projects since WIPP plans to expand its operations in Sierra Leone, Uganda and to other countries.

Quotes from representatives of NOA, WEL, REPP & FMO

Huub Cornelissen, Energy Director of FMO said “Supporting renewable energy programs is key to FMO’s strategy, as lack of access to energy is one of the biggest barriers to development. Mini-grids are seen as essential to increasing access to electricity and, as such, are becoming part of FMO’s core strategic focus. Closing this first mini-grid debt transaction represents a major milestone for FMO and an important contribution to further develop the sector. The partnership with Winch and NOA proves that mini-grids can be financed at scale and efficiently by creating a cross-country portfolio of assets. The addition of a facility for future projects allows for scale and provides the developers with an efficient funding source for the deployment of additional mini-grids.”

Nicholas Wrigley, CEO of Winch Energy said: “We are obviously delighted with the closing of this debt financing from FMO and REPP Camco, which represents a landmark for the off-grid industry in Africa and Worldwide. This first tranche represents the beginning of our investment program with our partner NOA and soon to follow will be additional investments in Sierra Leone and Uganda and we are also targeting Nigeria and Ethiopia for 2022. The teams at Winch Energy and NOA have worked extraordinarily hard to bring about this innovative debt financing and for that I wish to thank them.”

Geoff Sinclair, Managing Director of Camco, said: “Solar-powered mini-grids have a vital role in enabling countries in Africa to meet their climate action targets while providing affordable, reliable and sustainable energy access to underserved rural communities. As REPP's investment manager we are excited to be participating in both Sierra Leone's and Uganda's first large-scale mini-grid programmes, which will serve as a template for the wider roll out of mini-grids in the surrounding markets."

Philippe Ringenbach, CEO of NEoT Capital, President of NOA, said: “NOA is very proud to participate in this ambitious project alongside Winch Energy and two of the most active lenders in African offgrid market. This transaction reinforces NOA's position as a leading provider of innovative financing in the renewable energy sector in Sub-Saharan Africa, which has huge potential and an equally huge need for financing.”

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About NEoT Offgrid Africa: NEoT Offgrid Africa (NOA) is an investment platform designed to support Africa's energy transition by addressing the issues of energy access. Founded and owned by Meridiam (as majority shareholder), EDF and Mitsubishi Corporation, NOA provides its partners with innovative financing solutions to remove barriers to upstream investment, deployment of new technologies and commercial risk management. NOA is managed by NEoT Capital, which is a company dedicated to supporting the energy transition to a carbon-free world. Founded by leading industrialists, NEoT creates and manages investment platforms that finance the deployment of zero-emission equipment based on innovative energy storage solutions. NEoT brings together a team experienced in financial structuring and clean energy solutions, and relies on international strategic partners to provide the financial and operational support needed to develop carbon-free solutions.

About Meridiam: Meridiam was founded in 2005 by Thierry Déau, with the belief that the alignment of interests between the public and private sector can provide critical solutions to the collective needs of communities. Meridiam is an independent investment Benefit Corporation under French law and an asset manager. The firm specializes in the development, financing, and long-term management of sustainable public infrastructure in three core sectors: mobility, energy transition and environment, and social infrastructure. With offices in, Addis Ababa, Amman, Dakar, Istanbul, New York, Luxembourg, Paris, Toronto and Vienna, Meridiam currently manages US$18 billion and more than 90 projects and assets to date. Meridiam is certified ISO 9001: 2015, Advanced Sustainability Rating by VigeoEiris (Moody’s) and applies a proprietary methodology in relation to ESG and impact based on United Nations’ Sustainable Development Goals (SDGs). For more information, visit: www.meridiam.com.

About Winch Energy Limited: Winch Energy is a global, off-grid renewable energy developer, operator and technology developer and integrator. Through its Remote Power Unit, the “RPU”, it provides a three utility solution for people around the world without access to electricity, internet or clean water. Winch Energy currently operates in five countries across Africa, with two key projects currently under construction in Sierra Leone and Uganda. Formed in 2008 by Nicholas Wrigley, who remains a significant shareholder, Winch Energy is owned by Winch Partners, Total Eren S.A., Al Gihaz Holding and Itochu Europe PLC. For more information, visit: www.winchenergy.com.

About REPP: The Renewable Energy Performance Platform (REPP), managed by Camco Clean Energy, works to mobilise private sector development activity – and investment – in small to medium-sized projects (typically up to 25MW). It is supported with £148m funding from the UK’s International Climate Finance through the Department for Business, Energy and Industrial Strategy (BEIS), and to date, has agreed contracts with 29 renewable energy projects across 16 countries, employing 7 different technologies, from SHS and PV mini-grids to on-shore wind and run-of-river hydro. For more information, visit: www.repp.energy.

About Camco Clean Energy: Camco Clean Energy is a specialist fund manager focused on renewable energy, climate finance and impact in emerging markets. We offer elegant and practical financing solutions to lead the clean energy transition, pairing the conscience of a development bank with the agility of a small private company. Camco manages REPP and in November 2020 was approved to become an Accredited Entity of the Green Climate Fund. The company has offices in Accra, Helsinki, Johannesburg, London, Nairobi and Toronto. For more information, visit: www.camco.energy.

29 September 2021: Husk Power Systems (huskpowersystems.com), the leading rural energy services company operating solar minigrids in Africa and Asia, concluded agreements to develop and operate seven minigrids with the Nigeria Electrification Project (NEP), which is funded by the World Bank and African Development Bank. The agreements, which were fully executed on September 15, fall under the Solar Hybrid Minigrid Performance-Based Grant (PBG) sub-component of NEP.

Signed by the Rural Electrification Agency (REA) and the company’s Nigerian entity, Husk Power Energy Systems Nigeria Ltd., the agreements marked an important expansion of Husk Power’s efforts to electrify rural communities and businesses across Nigeria and Sub-Saharan Africa. Husk already has more than 130 minigrids operating in India and Tanzania.

Husk Power’s solar hybrid minigrid projects will provide electricity to seven communities across Nasarawa State, with a total of about 5,000 connections that will benefit households, small businesses, medium-scale agro-processing and public institutions. The communities are in Doma Local Government Area (Rukubi, Idadu and Igbabo) and in Lafia Local Government Area (Kiguna, Akura, Gidan Buba and Sabon Gida).

”Husk Power’s mission is to rapidly scale the electrification of rural communities and continuously spur economic growth for medium, small, micro enterprises in Nigeria and across Sub-Saharan Africa,” said Olu Aruike, Husk Power’s country lead in Nigeria. “We are grateful for the leadership and support provided by the REA, and look forward to a long-term partnership in delivering power to all Nigerians.”

Added Husk Power’s co-founder and CEO Manoj Sinha: “I am very excited to see our partnership with REA coming to fruition. It will enable Husk Nigeria, under our strong local leadership team, to scale rapidly in Nigeria and achieve our ambition of catalyzing socio-economic development in rural communities across the country.”

The objective of the PBG program is to increase electricity access to unserved and underserved communities across Nigeria using solar hybrid technology. The agreement with Husk provides grants of US$350 per connection, with a minimum total grant request of US$10,000 per minigrid.

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About Husk Power Systems: Founded in 2008, Husk Power Systems provides access to clean, modern and affordable electricity in Africa and Asia by developing and operating renewable energy minigrids and adjacent energy services. Its customer-centric service matches the growing needs of households, businesses, and community services. The company’s grid-compatible solution also supports national electrification plans. For more information, visit: huskpowersystems.com.

29 September 2021: The Energy Entrepreneurs Growth Fund (EEGF) has completed its first three investments into distributed renewable energy (DRE) companies working in Sub-Saharan Africa, and signed a concessional loan agreement with the African Development Bank (AfDB) that allows the fund to continue releasing flexible capital into the sector, which is making a critical contribution to expanding energy access whilst addressing the climate challenge.

The EEGF was created in 2019 by Shell Foundation, co-funded with UK aid from the UK government, and the Dutch Entrepreneurial Development Bank FMO, to provide financing to early and growth-stage companies operating in the access to energy ecosystem in Sub-Saharan Africa.

Managed by Triple Jump and advised by Persistent, EEGF is designed to provide patient, flexible capital combined with technical assistance that is currently lacking in the DRE ecosystem. By predominantly providing mezzanine structures as well as equity and debt investments through tailored solutions it is able to meet the changing needs of growing DRE companies working to achieve Sustainable Development Goal 7 (“Ensuring access to affordable, reliable, sustainable, and modern energy for all”) by 2030.

Investments into three access to energy enterprises

Baobab+ operates in Senegal, Côte d’Ivoire, Mali, Madagascar and is currently expanding into Nigeria and the Democratic Republic of Congo, supporting underserved households and microentrepreneurs in gaining energy autonomy and digital access, a prerequisite for their financial inclusion. To expand its range to new products in Côte d’Ivoire, the company has obtained financing of EUR 2 million from EEGF. Despite the challenges presented by the ongoing pandemic Baobab+ maintained a growth rate of 60% in its “Pay as you go” (progressive payment) energy and digital distribution business in 2020, and the investment by EEGF denotes continued confidence in the company. Baobab+ Côte d’Ivoire will provide access to energy and mobile products to c. 300,000 households within 5 years.

Yellow is a leading Solar Home Systems PAYGo company operating in Malawi since 2018 and Uganda since 2019. The company predominantly distributes and finances solar home systems (SHS) to underserved households and micro-enterprises living off-the-grid. EEGF made a total commitment of USD 4.0 million to Yellow Solar and disbursed the first tranche of USD 1.5 million in local currency in June this year. By 2025, Yellow aims to cumulatively reach 600,000 households, providing 250 million additional light-hours for women in households and offsetting 700,000 tons of CO2eq*.

Redavia provides solar solutions that grant commercial and industrial (C&I) businesses in sub-Saharan Africa with access to clean, safe, reliable and affordable electricity, enabling local economic development while reducing greenhouse gases emissions. At the end of August, EEGF disbursed the initial tranche of a $3.7 million mezzanine investment transaction to Redavia. To date, Redavia has installed close to 90 solar units, for 7 MWp of solar capacity, with clients in Ghana, Kenya and Tanzania. In the next five years, Redavia expects to have installed over 85 MWp of solar power, generating 175 GWh of electricity, and offsetting 55,000 tons of CO2eq*.

“A just and inclusive energy transition, one that alleviates energy poverty and mitigates climate change, requires understanding the financing needs of entrepreneurs who we are depending on to deliver the world’s energy access goals,” says Sam Parker, Shell Foundation CEO. “We believe EEGF provides a new and attractive financing solution for the entrepreneurs, with its ability to deploy both mezzanine debt and equity. This provides patient capital tailored to the company’s needs, enabling them to become attractive targets for more established debt and equity markets.”

Supporting inclusive renewable energy deployment is key to FMO’s strategy, as the lack of access to energy continues to be one of the biggest barriers to development. EEGF’s mandate to provide flexible capital to early- and growth-stage companies in the access to energy space across Sub-Saharan Africa is proving to be increasingly relevant in a sector heavily impacted by the COVID-19 crisis. We are excited to see that EEGF can deliver on this mandate in these difficult circumstance, with its first three debt investments and the signing of a concessional loan agreement with AfDB.”, says Marina Pannekeet, FMO’s manager for Energy investments in Eastern & Southern Africa.

Concessional loan agreement with AfDB to support energy access companies through and beyond the COVID-19 pandemic

EEGF is partnering with the African Development Bank (AfDB) on the COVID-19 Off-Grid Recovery Platform (CRP) to provide soft financing solutions to businesses to mitigate the negative impacts of the pandemic and support strong recovery of the sector.

In August, EEGF signed a USD 6.6 million concessional loan agreement with AfDB as part of the CRP. Financial, economic, and operational challenges resulting from the pandemic have severely impacted energy companies, threatening their commercial viability. This patient and risk-tolerant capital provided by AfDB’s Sustainable Energy Fund for Africa (SEFA), will be blended with EEGF capital to provide loans on below market terms to mitigate the negative impacts of the pandemic and support a strong recovery of this emerging industry. The CRP funding comes at a critical moment for early-stage energy access companies affected by COVID-19 and allows EEGF to continue investing in the sector at a time when risk capital is increasingly scarce. AfDB-CRP contributions were blended in the investments into Yellow and Redavia.

Joao Duarte Cunha, Division Manager for Renewable Energy at the African Development Bank, said “We appreciate the close collaboration with EEGF to support the sector and maintain the course towards universal energy access by 2030. EEGF’s mezzanine debt offerings and extensive lending experience will contribute to providing diverse and tailored financial solutions to address the market challenges created by the pandemic and ensure the sector’s long-term viability”.

* CO2eq offsetting projections are based on modelled estimates

25 September 2021: Norfund, the Norwegian Government’s Investment Fund for developing countries, is investing €10 million in equity in Baobab+, the leading distributor of solar home systems in Western Africa and Madagascar.

The financing from Norfund comes at a time when Baobab+ has demonstrated its robustness despite the Covid-19 pandemic crisis: as of August 2021, Baobab+ had experienced sustained ≈ +60% yearly business growth.

Expanding presence in Africa

Baobab+, a panafrican group already present in Côte d'Ivoire, Mali, Senegal and Madagascar, has equipped 220,000 households and served more than 1,200,000 beneficiaries in the past 5 years. This funding will allow the company to strengthen its presence in its existing countries and deploy operations in Nigeria and the Democratic Republic of Congo. Baobab+ aims to equip one million households with solar and digital products within 5 years.

Access to energy and much more

For Norfund, this investment is an opportunity to support a sustainable company with a strong social impact. For Baobab+, access to energy is also a springboard to enable every African household to take part in the digital revolution. In the countries where the company operates, Baobab+ has been a pioneer in launching a smartphone offer with flexible payment. In partnership with local start-ups, Baobab+ offers additional content that meets its customers’ needs, such as e-education, health or the management of small business activities. To date, Baobab+ has equipped more than 90,000 households with digital solutions.

In addition, in partnership with its parent company, the Baobab microfinance group, a major player in access to financial inclusion in Africa, Baobab+ has developed a unique scoring framework that allows its Pay-As-You-Go clients to become eligible for a nano-credit, using their repayment history from the solar or digital product serving as their first credit experience. This proprietary solution, initially introduced in Senegal, will be gradually deployed in all countries.

Alexandre Coster, co-founder and CEO of Baobab+:

"I am very happy that Baobab+ is taking this next step, made possible by the incredible work done by our teams in the field over the past 5 years. We are fortunate to have Norfund at our side as we move forward. We share many common values."

Tellef Thorleifsson, CEO of Norfund:

“Increased access to electricity greatly improves the living standard of people living in rural or poor areas, and Baobab+ has proven its ability to deliver great impact through a sustainable business model. Norfund is looking forward to supporting the company in bringing affordable solar energy to even more households and expanding into new markets through our first investment in the solar home system space in Francophone Africa.”

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About Baobab+: Launched in 2015 and operating in six African countries, Baobab+ is a social enterprise that supports households and micro-entrepreneurs in their energy autonomy through the distribution of solar kits, with 220,000 households already equipped (1.2 million beneficiaries), particularly in rural areas. In addition to this primary vocation, the Baobab Group's subsidiary offers digital devices for educational and professional purposes, with more than 90,000 households (300,000 beneficiaries) already equipped. These products benefit from financing facilities to make them accessible to all. For more information, visit: www.baobabplus.com / www.baobabgroup.com.

About Norfund: Norfund is the Norwegian Investment Fund for developing countries. Our mission is to create jobs and to improve lives by investing in businesses that drive sustainable development. Norfund is owned and funded by the Norwegian Government and is the Government´s most important tool for strengthening the private sector in developing countries, and for reducing poverty. Norfund's committed portfolio amounts to USD 3.3 billion in sub-Saharan Africa, Southeast Asia and Central America. Norfund has four investment areas: clean energy, financial institutions, large-scale enterprises and green infrastructure. Clean energy investments account for about 50% of the portfolio and 50% of the portfolio is in sub-Saharan Africa. For more information, visit: www.norfund.no.

24 September 2021: Commitments of more than US$400 billion in new finance and investment announced; far more needed to address energy poverty and decarbonization of energy systems.

New multi-billion-dollar commitments to increase renewables and access to electricity and clean cooking technologies were announced today at a critical UN energy summit aimed at boosting efforts to reduce the ranks of nearly 800 million people living in energy poverty without electricity access while setting the world on a trajectory towards net-zero-emissions by 2050.

More than US$400 billion in new finance and investment was committed by governments and the private sector during the UN High-level Dialogue on Energy, the first leader-level meeting on energy under the auspices of the UN General Assembly in 40 years.

Over 35 countries -- ranging from Small Island Developing States to major emerging and industrialized economies -- made significant new energy commitments in the form of Energy Compacts. Additionally, several new partnership initiatives were announced, aiming to provide and improve access to reliable electricity to over a billion people.

The new commitments would result in large increases in the installed capacity of renewable energy and significant improvements in energy efficiency around the world -- leading to hundreds of new renewable energy facilities and the creation of millions of new green jobs.

The energy summit took place as world leaders grapple with the critical urgency to keep the 1.5 degrees temperature target of the Paris Agreement within reach, and cut emissions by 45% by 2030, while closing the energy access gap and providing more than one billion people who currently rely on harmful fuels with clean cooking solutions. The new commitments showcase the bold actions needed to meet the targets of Sustainable Development Goal 7 (SDG 7).

A ROADMAP TO 2030

In addition to the announcements of commitments, the Dialogue will also produce a global roadmap for action and timelines needed through 2030 to meet the targets for clean, affordable energy for all set out in Sustainable Development Goal 7, towards net-zero emissions by 2050 in line with the Paris Agreement on Climate Change.

The roadmap, which will be presented in the summary of the Dialogue by the Secretary-General, will call on governments, businesses and civil society organizations to close the energy access gap by 2030, and accelerate the clean energy transition by tripling investments in clean energy and energy efficiency by 2030. It also calls for phasing out coal by 2030 for OECD countries and 2040 for all others, and shifting fossil fuel subsidies to renewable energy investments, while creating new decent and healthy jobs and ensuring a just, inclusive transition. The roadmap draws on inputs from expert working groups and was discussed at Ministerial-level forums in June.

Recent reports from the IPCC and UNFCCC have shown that countries are not moving fast enough on climate action to avert disastrous consequences, and that even if countries met all their NDC commitments under the Paris Agreement, the collective impact would be only a fraction of what is needed to limit warming to 1.5 degrees Celsius.

In addition to mobilizing voluntary commitments, the Energy Compacts can help by encouraging countries to outline the detailed set of energy actions that they have planned to meet their targets and providing an avenue to build partnerships and resources. By engaging business, foundations, civil society organizations and other key players, the Compacts are advancing concrete multi-stakeholder solutions and partnerships needed to achieve greater impact.

FINANCE AND INVESTMENT

More than 150 Energy Compacts from national and local governments, businesses, foundations and international, civil society and youth organizations from every region were submitted for the Dialogue, reflecting actions and finance commitments through 2030.

Clean energy funding committed by national governments and the private sector in these Compacts amounted to more than $400 billion for access and transition. On top of this, several foundations and industry associations aimed to leverage large amounts of additional finance for SDG 7.

On energy access, national governments committed to provide reliable electricity to over 166 million people worldwide; private companies pledged to reach just over 200 million people; and a number of foundations and business associations promised to pursue partnerships to reach hundreds of millions of additional people.

Presently, close to 760 million people still lack access to electricity and some 2.6 billion people lack access to clean cooking solutions. It is estimated that the cost of closing the energy access gap is about $35 billion dollars a year for electricity access and $25 billion dollars a year for clean cooking. The annual investment in clean energy and energy efficiency required to achieve net-zero emissions by 2050 is estimated to be $4.4 trillion.

BOOST RENEWABLES AND ENERGY EFFICIENCY

Commitments under the Energy Compacts could also give a huge boost to renewable energy worldwide. National governments committed to install an additional 698 gigawatts (GW) of clean energy from solar, wind, geothermal, hydro and renewables-based hydrogen, and businesses, notably power utilities, pledged to install an additional 823 GW, all by 2030. Several partnerships and industry associations promised to mobilize an additional 3500 GW of renewables by 2030. One gigawatt is roughly equivalent to the output of 500 onshore wind turbines. The Energy Compacts also include commitments to save energy equivalent to more than 7000 GW by implementing efficiency measures.

The production and use of energy is also the main cause of the climate crisis, accounting for about 75 per cent of total greenhouse gas emissions and making decarbonization of the energy system essential.

A SIGNAL OF WHAT IS POSSIBLE

“The commitments coming through this process led by UN-Energy are a real signal of what is possible,” said UN Secretary-General António Guterres. “I am pleased to see several of the major emitters – countries and sectors – demonstrating leadership through the High-Level Dialogue process along with bold commitments to act.”

“Access to clean, renewable energy is, quite simply, the difference between life and death,” he added.  “We must solve these challenges this decade. And we must start today. Without deep and rapid decarbonization of our energy systems over the next 10 years, we will not reach the Paris Agreement goal of limiting temperature rise to 1.5 degrees. This will be fatal to the Sustainable Development Goals.”

“So we have a double imperative,” the Secretary-General said. “To end energy poverty and to limit climate change. And we have an answer that will fulfil both imperatives. Affordable, renewable and sustainable energy for all.”

Mr. Guterres also called for closing the energy access gap by 2030. “That means cutting in half the number of people without access to electricity by reaching 500 million people by 2025. And it means providing over 1 billion people with access to clean cooking solutions by 2025.“

THE WAY FORWARD

In line with the need to continue raising ambition, additional Energy Compacts are expected to be registered in the months ahead, including in the lead-up to the November Climate COP 26, as momentum grows and partnerships are expanded. Progress on the Compacts will be tracked through the 2030 target year, with annual reporting through a publicly transparent online database.

Under the leadership of its Co-Chairs, Achim Steiner, Administrator of UNDP, and Damilola Ogunbiyi, the Special Representative of the UN Secretary-General for Sustainable Energy for All, who have also served as Co-Chairs of the High-level Dialogue, UN-Energy will continue to spearhead transformational commitments and partnerships and sustain the momentum created by the Dialogue, including the Energy Compacts. UN-Energy brings together over 25 UN System entities and key partners for collaboration in the field of energy. Serving as the Secretariat for UN-Energy is UN DESA, under the leadership of Under-Secretary-General Liu Zhenmin, who also served as Dialogue Secretary-General. Given the global challenges at hand, UN-Energy will be further strengthened to help translate the global roadmap into concrete actions.

ENERGY COMPACTS submitted for the High-level Dialogue include the following:

GOVERNMENTS AND PARTNERS

• Denmark committed to reduce national CO2-emissions by 70% in 2030 (compared to 1990), have 100% of electricity from renewable energy by 2028, up-scale offshore wind by potentially up to 12 GW, phase out oil and gas extraction by 2050 and immediately end new licensing rounds; and increase climate finance to at least 500 million USD annually by 2023.
• Germany aims to reach a 30% share of renewable energy in gross final energy consumption by 2030 and increase the proportion of renewable energy in total electricity consumption to 65% by 2030, as well as supporting partner countries in expanding use of decentralized energy and innovative technologies such as green hydrogen and PtX. It will also provide 7 billion euros for speeding up the market rollout of hydrogen technology in Germany and another 2 billion euros for fostering international partnerships.
• India committed to increase renewable energy installed capacity to 450 GW by 2030, develop and implement a National Hydrogen Energy Mission to scale up annual green hydrogen production to ~1 MT by 2030, begin a Production Linked Incentive Scheme to add 10 GW solar PV manufacturing capacity by 2025, create 15 MMT production capacity of compressed biogas (CBG) by 2024, achieve 20% ethanol blending in petrol by Ethanol Supply Year 2025-26 and enhance energy efficiency in agriculture, buildings, industry and transport sectors and promote energy-efficient appliances/equipment to reduce India's emissions intensity of GDP by 33-35% over 2005 levels by 2030.
• For Latin America and the Caribbean, the RELAC Energy Compact commits that 70% of the installed capacity and electricity generation in the region will be from renewable energies by 2030. Governments participating include: Bolivia, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Haiti, Honduras, Paraguay, Peru and Uruguay.
• The Pacific island nation of Nauru pledged to achieve 50% electricity generation from renewable sources by 2023 and a 30% improvement in energy efficiency by 2030, from a 2021 baseline, noting that full implementation of this Compact requires technical and financial support.
• Malawi, conditional on climate finance, targets to achieve universal access to cleaner cooking for households & institutions, phasing out open fires by 2030, with 2 million cleaner cookstoves reached 2021-2025 and an investment of more than $596 million. 
• The Netherlands Ministry of Foreign Affairs as well as over 25 Dutch businesses, NGOs and foundations will support access to clean cooking for 45 million people, access to electricity based on renewable energy for 100 million people, and a doubling of job opportunities in the energy transition for women and youth, all by 2030.
• Nigeria committed to electrify 25 million people across 5 million homes by 2023 using solar technologies and creating 250,000 jobs, and also to giving 30 million homes access to clean cooking and energizing agriculture, textile production, cold storage etc. using gas as a transition fuel.
• Sierra Leone’s commitments included: to increase the use of LPG to an adoption rate of 25% as an alternative to wood, ensure that all households have access to energy-saving cooking solutions, and Increase the efficiency of most biomass stoves to a minimum of 20% (Tier 2 stove efficiency).
• The United Arab Emirates commits to provide 100% of the UAE population with access to electricity by 2030 and primary reliance on clean fuels and technologies for cooking by 2030.  · UAE also commits to generate 2.5 GW from solar energy in the building sector by 2030.
• The United States commits to creating 35 million new electrical connections for households and businesses by 2030, as well as 80% of the US electricity power generation coming from clean sources. The US Government also put forward commitments to decarbonize the DFC investment portfolio and mobilize USD $25 billion in public sector commitments from Power Africa’s development partners and development institutions.

PRIVATE SECTOR

• Enel said it would reach 5.6 million new electricity connections by 2030, speed up its coal phase-out to 2027, triple renewable energy generation to 145GW by 2030 and provide more than 4 million EV charging points and 10,000 electric buses by 2030.
• The Spanish utility Iberdrola committed to double renewable capacity to 60 GW by 2025 and to provide access to electricity to 16 million people in emerging countries by 2030.
• The Italian company Graded SpA committed to invest 1.000.000 € in renewable energy, particularly in green-hydrogen development.

FOUNDATIONS AND COALITION-BASED ENERGY COMPACTS

• The Rockefeller Foundation announced that it was committing $1 billion in philanthropic capital, in partnership with the IKEA Foundation, to scale the distributed renewable energy sector in support of ending energy poverty and combatting the climate crisis. A new platform would aim to empower one billion people with access to reliable, distributed renewably energy and reduce global GHG emissions by up to one billion tons annually.
• The Health Facility Electrification Compact aims to provide 25,000 health facilities with sustainable access to a clean and reliable power source by 2025. Partners include: USAID/Power Africa, Shell Foundation, SEforALL, UNDP, UNICEF, IRENA, Denmark, GAVI, Power for All, Clinton Health Access Initiative, SELCO Foundation.
• The 24/7 Carbon Free Energy (CFE) Compact, led by Google and in partnership with a group of energy buyers and suppliers including governments, aims to transform global electricity grids to “absolute zero” or full decarbonization. Signatories commit to adopting and enabling 24/7 CFE, which means that every kilowatt-hour of electricity consumption is met with carbon-free electricity sources, every hour of every day, everywhere.
• The No New Coal compact includes the Democratic Socialist Republic of Sri Lanka; Republic of Chile; Kingdom of Denmark; French Republic Federal Republic of Germany; United Kingdom of Great Britain and Northern Ireland; and Montenegro committed to a No New Coal Compact, immediately ceasing issuance of new permits for unabated coal-fired power generation projects and cease new construction of unabated coal-fired power generation projects as of the end of 2021.
• The Green Hydrogen Catalogue so far consists of 29 Energy Compacts from governments, intergovernmental organizations, businesses and coalitions, with more expected. Commitments total 268 GW of new renewable energy capacity and 129 GW of new electrolyzer capacity by 2030, and will effect more than 25 million tonnes of green hydrogen.
• An Offshore Wind Energy Compact, submitted by IRENA and the Global Wind Energy Council, committed to achieve 380 GW of offshore wind, including fixed-bottom and floating offshore wind, installed worldwide by 2030, and 2,000GW by 2050.
• A Gender and Energy Compact was initiated by ENERGIA, GWNET and UNIDO, with Ecuador, Iceland, Kenya, Nepal and Sweden (SIDA) as government partners along with some 30 civil society and international organizations. The Compact aims for women to have equal opportunity to lead, participate in and benefit from a just energy transition, and to have equal access to and control over sustainable energy products and services, setting targets to achieve those outcomes.

Summaries and the complete text of all Energy Compacts registered are available online at https://www.un.org/en/energycompacts/page/registry.

Note: Numbers provided and summaries of commitments are solely based on Compact submissions. Compacts are highlighted for media purposes only; inclusion does not imply endorsement by the UN.

• Organizations join forces to reach a new level of impact and scale.

22 September 2021: Today Energy 4 Impact and Mercy Corps announced a merger to increase access to climate-smart, sustainable energy, improving the lives of millions around the world. 

“With the turmoil of climate change, conflict and COVID-19 unravelling many of the development gains made over the past decade and pushing millions more people into poverty, there has never been a more urgent time to help communities build back better with access to cleaner, more sustainable energy,” says Anthony Marsh, Chairman of Energy 4 Impact’s board of trustees. “Plus, innovations in renewable energy technology and more sophisticated private sector models means that clean energy solutions are better and more affordable than ever. Together, our organizations have the potential to reach a whole new level of impact and scale.”

Today, more than 800 million people lack access to energy globally, 8 in 10 of whom live in “fragile” states where communities also face a myriad of complex challenges related to conflict, weak governance, and insecurity, as well as the growing impacts of climate change. Mercy Corps and Energy 4 Impact will together create opportunities to increase energy access and use for the communities that need them most, and to integrate energy into sectors such as agricultural development, economic growth, youth employment, humanitarian recovery, and climate resilience. ​​The merger will enable Energy 4 Impact to both strengthen its position in its existing markets and develop new frontiers. 

“By bringing Energy 4 Impact’s proven expertise in building sustainable energy markets into Mercy Corps’ large and diverse portfolio of humanitarian and development programs, including in fragile states, we can develop sustainable solutions in contexts where they’re needed most,” says Tjada D’Oyen McKenna, CEO of the global organization Mercy Corps. “Energy access is key to unlocking people’s potential. It powers businesses and fires up economic opportunities, paving the route to greater stability and resilience.”

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About Energy 4 Impact: Energy 4 Impact is a UK-registered non-profit organisation seeking to reduce poverty in Africa by accelerating access to clean energy, helping businesses and communities make better use of that expanded access, and working with the private sector to support the sustainability of these efforts. Energy 4 Impact values access to energy not as an end in itself but for the difference it makes to people’s lives every day, in terms of agricultural development, economic growth, humanitarian recovery, and climate resilience. Supported by a small headquarters in London, Energy 4 Impact currently operates from regional offices in Kenya, Senegal, Benin, Tanzania, and Rwanda. Over the last 14 years, Energy 4 Impact has provided access to 18 million people in Africa.

About Mercy Corps: Mercy Corps is a global team of 5,600 humanitarians working to create a world where everyone can prosper. In more than 40 countries affected by crisis, disaster, poverty and climate change we work alongside communities, local governments, forward-thinking corporations and social entrepreneurs to meet urgent needs and develop long-term solutions to make lasting change possible. Mercy Corps has a total operating budget of $488M and last year reached nearly 37 million people.

21 September 2021: U.S. Development Finance Corporation (DFC) has invested $10 million in Nithio's Financial Intermediary, Nithio FI, B.V., an AI-enabled clean energy financing platform. Strongly aligned with DFC's climate-focused investments agenda, this investment enables Nithio to scale its data-driven financing to impact more than 3.5 million people by 2025 and drive climate change adaptation efforts in Kenya, Uganda, and Nigeria. The investment, joined alongside FSD Africa Investments and EDFI-ElectriFI, finalized Nithio FI's first round of $23 million. Nithio FI is a blended finance, permanent capital vehicle that is purpose-built to mobilize capital at scale.

Nithio continues to scale its lending operations in key growth markets. To date, Nithio has invested in four high-impact off-grid solar and microfinance institutions in Kenya and Nigeria, including VEP, Rafode, Winock, and A4&T Power Solutions.  Nithio has built a strong pipeline and looks forward to continuing to build strong partnerships with companies focused on providing solar energy for powering homes, businesses, and agricultural activities. These products not only bring clean energy access, they increase resilience to climate change.

"Nithio has created an innovative, data-driven solution that fills a large gap in the market to sustainably scale capital flows to the clean energy sector. By standardizing credit risk, Nithio's investments will have an outsized impact towards achieving universal energy access and combating the effects of climate change," said Bobby Pittman, Nithio Co-Founder and Founding Partner at Kupanda Capital.

As Nithio moves to its next phase of growth, the team thanks Héla Cheikhrouhou for her service as Chief Executive Officer and wishes her well in her return to the public sector as Regional Vice President for Middle East, Central Asia, Afghanistan, and Pakistan at the International Finance Corporation (IFC).

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About Nithio: Nithio is an energy financing platform powered by a proprietary AI-enabled risk analytics engine. Nithio developed its innovative approach to standardize credit risk assessments in order to unlock and scale energy access in Sub-Saharan Africa. Nithio advances energy financing at scale through its Financial Intermediary, Nithio FI B.V., which offers receivables-backed financing to off-grid energy providers in Nigeria, Uganda and Kenya. Driven by the Risk Analytics Engine, Nithio FI's innovative approach expands access to off-grid clean energy for households, micro businesses, and smallholder farmers. For more information, visit: www.nithio.com.

20 September 2021: EEP Africa has launched a new cohort of 26 projects promoting productive use of energy and circular economy in Southern and East Africa.

The new portfolio stems from a 2020 competitive call for proposals on Clean Energy Powering Green Growth. From among 357 applications submitted, 26 companies were awarded a total of EUR 8.3 million in financing for projects to be implemented in 12 countries across Southern and East Africa. The new grantees are mainly start-up companies (81%), with a significant share of locally-led (62%) and women-led (38%) enterprises.

“We see many clean energy start-ups developing sustainable solutions to stimulate green growth in rural communities. However, it is a well-known fact that there is a severe lack of flexible and early-stage financing for such innovators, especially for local and women-led companies. EEP Africa is proud to be one of the leading funders willing to take risks and catalyse investment in new technologies and business models.” – Jussi Viding, EEP Africa Fund Manager

The new portfolio demonstrates the growing trend of integrating energy services along the entire agricultural value chain. It includes projects that are bringing solutions to market in solar irrigation and cooling, agro-processing, waste-to-energy and e-mobility. Grant funding is needed to test and demonstrate new products and business models in these areas. It also allows companies to expand asset financing and financial inclusion, which increases uptake of productive use assets in last-mile communities.

The new projects aim to enhance access to energy for both household and productive use purposes. Collectively, they expect to create 2,600 new jobs (43% for women) and result in EUR 7.7 million in annual savings on energy-related expenditures. The call primarily attracted applications for stand-alone appliances and services, rather than large-scale power plants, but even so the new projects are projected to generate 25,000 MWh of clean energy per year and reduce or avoid 105,000 tonnes of CO2e emissions annually.

“Clean energy has a critical role to play in fostering sustainable rural economic development. Market entry for new products and technologies can be very challenging. EEP Africa serves as a catalyst to enable promising small and medium enterprises at the early stages of the financial growth cycle to test and refine their business models in view of becoming bankable.” – Henrik Franklin, Director of Portfolio Origination & Management, Nordic Development Fund

The new grantees join those funded under earlier calls, resulting in a combined portfolio of 67 companies working in 14 countries. The portfolio collectively reflects the incredible diversity of technologies, products and business models being utilised to advance a just clean energy transition in Africa.

Download the EEP Africa New Portfolio 2021 booklet.

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About EEP Africa: EEP Africa is an early-stage clean energy financing facility hosted by the Nordic Development Fund (NDF) with funding provided by Austria, Finland and NDF. EEP Africa is proud to support innovative projects that are catalysing sustainable and inclusive green growth and contributing to achievement of the Paris Climate Agreement and Sustainable Development Goals (SDGs).

15 September 2021: After a years-long partnership, ecoligo, the German climate solution leader will take over Namene Solar’s project business in West Africa.

The German company ecoligo, provider of a solar-as-a-service solution for companies in emerging countries, will add the commercial and industrial solar projects of Namene Solar West Africa, based in Ghana, to its rapidly growing portfolio of solar projects.

Namene Solar has been active in Ghana since 2015. During this time, they have developed and constructed pioneering solar sites in Ghana, including the 400kWp Central University solar system that was realized in partnership with ecoligo.

Namene Solar will focus its West Africa operations on scaling its global solar lights business. The lights division is growing rapidly, with leading NGOs and high-volume corporate buyers among its customer base, and an innovative climate financing scheme. While Namene Solar West Africa will remain part of the Namene Group, focusing on its successful lights business, Namene Solar’s West Africa power division will be acquired by ecoligo.

ecoligo’s acquisition of Namene Solar’s Ghana C&I business comes amid a rapid growth phase for the Berlin-based company, including new flagship projects in Africa and Vietnam as well as forthcoming entry into multiple new markets. With 3.7 MWp of solar power projects in the country already, ecoligo is thrilled to further grow its business in Ghana in pursuit of its mission to tackle climate change at the source.

“We are delighted to announce that ecoligo will be taking over Namene Solar’s C&I projects division in Ghana, ensuring continuity for our staff and customers whilst we focus Namene Solar’s West African operations towards our market leading small-scale solar lights offering. We are confident in the continued, successful growth of Ghana’s solar market, utilizing ecoligo’s expertise and solar-as-a-service model for emerging markets.”

Namene Solar Director, Jason Wallis

“With the effects of climate change growing everyday we know the time to act is now. This expansion of our project portfolio in Ghana dramatically increases the amount of CO2 emissions we prevent from entering the atmosphere and positions us to further grow our business in Ghana. Our unique solar-as-a-service business model has helped over 100 businesses to seamlessly move to affordable solar power. We are thrilled to provide the same high level of service and support to our new customers.”

ecoligo CEO and Co-founder, Martin Baart

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About Namene Solar: Namene Solar delivers solar power without limit. As a solar company, our purpose is to bring everyone, everywhere access to clean, affordable energy. We do this by connecting people to the sun to power their lives. As solar specialists, we provide solar solutions of all sizes. From our award-winning, portable SM100 solar light, to fully-financed end-to-end solar installations. For the growing number of people choosing to power their homes, lives, and businesses with solar energy, Namene Solar enables their transition. For more information, visit: www.namenesolar.com.

About ecoligo: Combining global reach and local expertise ecoligo is here to save businesses money on their electricity bills and save the planet while doing it. Their fully financed solar-as-a-service solution for businesses in emerging markets removes the barriers that prevent such projects from being realized. A one-stop-shop for clean, affordable solar energy, they handle everything from financing to installation and maintenance so clients can focus on running their business. Our projects support the local economy, save business money on electricity costs and CO2 emissions from entering the atmosphere, a win-win-win for us all.

15 September 2021: EDFI ElectriFI is making available a USD 6m revolving working capital facility (USD 4m from its global facility and USD 2m from the Nigeria Country Window) to Amped Innovation, a company designing and supplying high efficiency, lower cost solar home systems (SHS) and appliances for distributors across the world.

Amped Innovation, a US-based company developing a new generation of highly efficient solar home systems was boosted by ElectriFI USD 6m revolving debt facility to fund its working capital needs.

Amped Innovation focuses on solar equipment with integrated pay-as-you-go functionality such as high-performance lighting, televisions, cold-chain appliances, and DC-AC inverters. The company’s products offer high quality, reliable technology solutions, which are also affordable to low-income population segments. Amped Innovation gained recognition through a number of technology awards; its solar water pump and solar fridge were named Global LEAP awards finalists in 2019, and it was awarded a £160,000 R&D grant from Efficiency for Access for its continued innovation of off-grid refrigerators.

“EDFI ElectriFI is happy to support Amped Innovation which is a very dynamic and innovative company. This working capital facility is the first such instrument offered by ElectriFI. By financing Amped Innovation’s working capital needs, our debt financing will allow the company to use its cash resources on research and development and other corporate needs,” explained Natalia Svarinska, ElectriFI Senior Investment Officer at EDFI Management Company.

Here too, EDFI ElectriFI is collaborating with the government and the EU Delegation in Nigeria to accelerate renewable energy access in the country. Amped also benefited from the advisory and facilitation services of the European programme GET.invest.

“The EDFI working capital facility will accelerate Amped’s deployment of energy access solutions into over 20 countries across Africa and Southeast Asia.  With each new customer order, Amped can draw on the EDFI facility to finance inventory purchasing. This cash availability is crucial – smoothing cashflow just when it is needed in the manufacturing production cycle,” concluded Andrea Kleissner, co-CEO at Amped Innovation.

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About Amped Innovation: Amped Innovation powers homes and businesses that lack access to reliable power. Amped designs breakthrough solar energy solutions that out-perform the grid and leap-frog it. With its team of power electronics experts, it has designed a portfolio of solar lighting and TV products that deliver superior brightness and runtimes. Amped Innovation is redefining solar. For more information, visit: www.ampedinnovation.com.

About EDFI ElectriFI: EDFI ElectriFI is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets.

EDFI ElectriFI, is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). For more information, visit: www.electrifi.eu.

15 September 2021: The Government of Mozambique yesterday approved in the Council of Ministers, by Decree, the Regulation for Off-Grid Energy Access.

This regulation is the result of the Government’s efforts to recognise the importance of the sector to catalyse rural socio-economic development, leveraging private sector investment and improving the living conditions of millions of people.

Mozambique joins neighbouring countries, by putting in place a regulatory framework that will provide greater clarity to all actors in the off-grid energy sector. This will ensure the necessary conditions for the private sector to develop its activities and protect investments in a diverse set of technologies applicable to the off-grid context, such as solar home systems, mini-grids, and improved cooking solutions.

This regulation is the result of the visionary and committed work of the Government of Mozambique, with special reference to all the institutions involved, namely the Ministry of Mineral Resources and Energy (MIREME), the Energy Regulatory Authority (ARENE), and the National Energy Fund (FUNAE).

The BRILHO Programme, funded by the UK Government’s Foreign, Commonwealth and Development Office (FCDO) and implemented by SNV Netherlands Development Organisation, expresses its gratitude for the trust placed in this partnership by the Government of Mozambique. BRILHO is grateful for having been an integral part of the process to develop this new regulation, from its initial conception to operationalisation.

The BRILHO Programme is mandated to catalyse energy access through Solar Home Systems, Green Mini-Grids and Improved Cooking Solutions, to benefit 1.5 million Mozambicans and 15,000 small businesses by 2024.

The approval of this regulation represents a big step and sets high expectations for the sector. This sentiment is reflected in the positive reactions from the different key stakeholders in the sector.

António Osvaldo Saíde, PCA - FUNAE, FP, says:

"The regulation for off-grid energy is the leverage for the entry of strategic partners, the private sector, as it clarifies the rules of the game in the development of this unequivocal path for the achievement of universal access in 2030. The Government’s vision and actions to create an enabling environment for private sector investments demonstrate a commitment to transformation and social inclusion, and that consequently promotes economic inclusion in remote areas."

Sergio Dista, Private Sector Development Adviser at BHC Maputo, commented:

‘Our financial and technical support to the Government of Mozambique through the BRILHO programme forms part of the UK Energy Africa campaign. The approval of this regulation is one step ahead to accelerate the expansion of off-grid energy markets in Mozambique and, it will help to achieve universal energy access by 2030’.

According to Vivian Vendeirinho, President of AMDA (Africa Mini-Grid Developers Association) and CEO of RVE.SOL: ‘The new regulation allows for decentralised renewable energy providers to build mini-grid systems that will provide reliable, sustainable and affordable electricity to underserved rural communities in Mozambique. This will anchor their socio-economic development opportunities, so they are not left behind as the economy of the country evolves and grows. The end result will be the empowerment of rural communities, more jobs and trading opportunities for Mozambique’.

Javier Ayala, Team Leader of the BRILHO Programme and Energy Sector Leader for SNV Mozambique, commented: ‘This represents a major achievement for the off-grid sector in Mozambique. It will contribute to accelerating and increasing access to energy through solar home systems and green mini-grids for electrification, and clean cooking solutions, benefiting households and businesses with a greener, more inclusive and sustainable economy. The required regulatory conditions are now provided for the businesses to initiate and scale up their operations in Mozambique’s off-grid energy market; the BRILHO Programme is ready and available to provide the financial and technical support for their implementation'. 

The Decree will be accompanied by specific regulations that will provide Mozambique with a complete regulatory framework, which will act as an anchor for the growth and sustainable development of the off-grid energy sector.

7 September 2021: Teams from around the world are invited to register for and participate in Empower a Billion Lives – II (EBL-II), the biennial global competition to develop and demonstrate viable, holistic and scalable solutions to the challenging problems of severe energy poverty and lack of energy access that impacts billions of people around the world. EBL is organized by the IEEE Power Electronics Society (IEEE PELS) of the Institute of Electrical and Electronics Engineers (IEEE) and its partners.

Three billion people live in severe energy poverty, including 770 million who live without electricity access. With current policies and solutions, it is predicted that by 2030, there will still be around 660 million people without electricity access, falling far short of achieving UN Sustainable Development Goals (SDG7) targeted in the Decade of Action. Providing affordable and sustainable energy access can dramatically impact living standards, health, education, productivity, and ability to be a part of modern society. Solving energy poverty using 21st century technology would also result in reduction of 3.8 gigatons per year in carbon emissions, as compared with the use of traditional 20th century methods. New solutions that can scale are clearly needed.

EBL-II is building on the success of EBL-I, where over 450 teams from 70 countries participated in events, field demonstrations, and at the global final in Baltimore in the US. EBL II seeks to engage teams once again to develop solutions that will have a great impact in energy access, have sound business plans, are regionally relevant, and will scale.

In EBL-I over $500,000 was provided in awards and team support, including a $100,000 grand prize to team SoULS from IIT Bombay, India for an innovative model of Energy Swaraj (energy self-sustainability) based on marrying advanced industrial supply chain principles with a program to boost self-reliance for local women through training, jobs and entrepreneurship, a solution that has already reached over 1 million people. Other global winners include XPower from Rwanda, Reeddi and Havenhill Synergy from Nigeria, Entrepreneurs du Monde and Okra from Cambodia, and SolarWorx from Germany.

The EBL competition encourages multi-disciplinary teams consisting of innovators, entrepreneurs, and researchers, as well as student teams from colleges and universities, to develop and demonstrate innovative and cost-effective solutions that are based on fast-moving 21st century technologies with rapidly declining prices. A primary focus of EBL-II is to reduce technology and market risk, and to achieve scale and impact with solutions that are robust, economically viable, environmentally sustainable, and affordable for those who live on less than $1.90 USD per day.

Liuchen Chang, President of IEEE PELS states that “EBL is a unique program, marrying the latest capabilities in technology with the ability to scale rapidly. It leverages the global presence of IEEE, its preeminent position as a technology leader, and its tremendous volunteer base, to execute such a wide-ranging program. It also aligns very well with IEEE’s mission to advance technology for the benefit of humanity. EBL showcases how the most advanced technologies can be applied to solve problems of energy equity and access, and to do it in a manner that is sustainable and environmentally friendly i.e., good for the planet.” Teams from small and large companies, entrepreneurial start-ups, research institutions, and university students from different parts of the world will provide regional and cultural relevance to the solutions and are all invited to participate.

Please visit www.empowerabillionlives.org to learn more about Empower a Billion Lives II, to view the past winners, and to find out about how to compete in or to become a sponsor.

The Institute of Electrical and Electronics Engineers (IEEE) is the world’s largest technical organization with over 400,000 members/volunteers in 160 countries. The IEEE Power Electronics Society has over 30 years’ experience in facilitating and guiding the development and innovation in the control of electrical power for a wide variety of consumer, commercial, industrial, utility, transportation, and renewable energy applications.

7 September 2021: The research partnership between Energy 4 Impact and the UK aid-funded Modern Energy Cooking Services (MECS) programme continues with the launch of the third report in our joint Financing Clean Cooking series. The report Clean Cooking: Structuring Concessions for Displaced People looks at the potential for clean cooking concessions in refugee camps and other displacement settings.

Several of the largest refugee camps in the world can be found in sub-Saharan Africa and cooking with charcoal and firewood is the norm within these camps. Not only does this harm the environment, it also causes health problems and premature deaths through indoor air pollution. Humanitarian efforts have therefore focussed on bringing modern energy cooking solutions to the camps by means of subsidies and concessions. A concession is a market-based financial mechanism in which companies bid to supply a clean cooking solution for a number of years based on a price capped at an affordable level for the camp population. The donor-led concession fund pays the difference between the capped price and the price of the successful bidder.

In order to promote the wider adoption of this critical solution with humanitarian contexts, this report seeks to update the concession concept. It reviews recent developments in clean cooking in displacement settings and examines the attitudes of different stakeholders towards concessions.  It brings a particular focus to the involvement of the private sector and how to incentivize companies to develop clean cooking solutions in displacement settings. It also looks at the opportunities for concessions in different locations, the key ingredients for success, the main risks and risk mitigation strategies, and contractual issues. Finally, it calls on donors to make interventions to develop the clean cooking concession further.

Commencing with the recent publication of Clean Cooking: Scaling Up with Crowdfunding and the Clean Cooking: Financing Appliances for End Users, the overall aim of the Financing Clean Cooking series is to generate more investment by identifying strategies to expand the adoption of clean cooking in sub-Saharan Africa. The research into key trends, such as the business models of cookstove companies, investor types, pathways to technology scale-up and barriers to capital raising, provides a springboard for recommendations that can inform the actions of a diverse range of public and private stakeholders, particularly NGOs in sustainable development, clean energy donors and investors, and suppliers operating in the improved cookstove sector. The report calls upon donors in particular to make pivotal interventions in order to help scale up appliance financing and thereby stimulate market growth in the clean cooking sector.

Subsequent reports in the Financing Clean Cooking series, set to be published in the fourth quarter of 2021, will cover areas such as results-based financing and finance landscapes for clean cooking.

3 September 2021: The United Nations Development Programme (UNDP) and Sustainable Energy for All (SEforALL) announce a new partnership to unlock public and private investments towards affordable and sustainable energy access for all people in Africa, particularly in the Sahel.

Signing a Memorandum of Understanding at the United Nations headquarters in New York, the UN Assistant-Secretary General and UNDP’s Assistant Administrator and Regional Bureau for Africa Director Ms Ahunna Eziakonwa, and Ms Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, committed to mutual efforts to accelerate Africa’s resilience, recovery and development.

“Our vision for this partnership is to continue to promote and support bolder energy transition initiatives for the region and to demonstrate the viability of longer-term programs and investment readiness in the Sahel that will ultimately benefit millions of people in the region who currently do not have access to electricity and clean cooking solutions,” said Ms Ogunbiyi.

More than 53 per cent of Sub-Saharan Africans – about 570 million people – do not have access to electricity, as highlighted by the World Bank. In the Sahel alone, over 51 per cent of the Sahelian population – some 175 million people, do not yet have access to electricity. Further, eighty per cent - or some 271 million people - do not have access to clean cooking. Limited and unpredictable power supplies combined with high electricity costs constrain the development of businesses and economic activities as fossil fuels and traditional biomass (charcoal, wood, dry dung fuel) remain the main energy sources - bearing severe consequences on the environment and human health.

Given the urgent need for action, SEforALL and UNDP teams have identified immediate areas for collaboration. By supporting the policy and regulatory frameworks and strengthening institutional capacity, this alliance aims to unlock public and private sector investment for off-grid rural electrification, amongst other initiatives.

“Sealing this partnership today will strengthen our actions in addressing one of the most pressing issues for all people living in Africa, particularly in the Sahel,” emphasized Ms Eziakonwa. “Affordable and sustainable access to energy is key to accelerating development. A great opportunity awaits to be tapped – to transform the Sahel, regenerating this land of immense opportunity and promise. Investing in energy in the Sahel will deliver dividends for children trying to earn an education, youth willing to access employment opportunities, women yearning to acquire new skills, and empower local authorities or businesses.”

The African continent, particularly the Sahel, has immense renewable energy potential but remains challenged by the high financing costs required to deploy clean energy solutions at scale. Investing in clean energy in the Sahel will increase human development, ensure structural economic transformation and socioeconomic progress, and address conflict triggers in the region. Increasing energy access in the Sahel will spur on catalytic investments, power the entrepreneurial and innovative spirit of Sahelian men and women and bring renewed prospects to communities in the hinterlands and ungoverned spaces.

• The Energy Access Relief Fund — managed by SIMA — is an unprecedented partnership of 16 governments, foundations and investors and aims to provide essential financial support to energy access companies in sub-Saharan Africa and Asia.

1 September 2021: Today, a first-of-its-kind relief fund launched with a first close of $68 million and a target of over $80 million to protect energy access for at least 20 million people in sub-Saharan Africa and Asia.

The Energy Access Relief Fund (EARF) is the culmination of an unprecedented partnership convened by Acumen, including CDC Group, U.S. International Development Finance Corporation (DFC), FMO, Green Climate Fund (GCF), Shell Foundation, IKEA Foundation, The Rockefeller Foundation, World Bank, International Finance Corporation (IFC), Swedish International Development Cooperation Agency (SIDA), Swiss Agency for Development and Cooperation (SDC), the UK Foreign, Commonwealth and Development Office (FCDO), USAID, and Power Africa. The EARF, managed by Social Investment Managers and Advisors (SIMA), will provide relief capital in the form of short-term loans to an estimated 90 energy access companies in sub-Saharan Africa and Asia still struggling with disruptions wrought by COVID-19.

“Access to clean, reliable, and affordable energy is essential in lifting communities out of poverty. We could see that the pandemic was adversely impacting those who were most vulnerable, and that we needed to take action. We couldn’t do it alone — it would take all of us,” said Jacqueline Novogratz, Acumen’s Founder and CEO. “The launch of the EARF illustrates the power of partnership and moral imagination in a time of crisis.”

Broken supply chains, increased costs of solar components, and continued COVID lockdowns have crippled the energy access industry, which provides renewable energy solutions such as solar lanterns, household solar, mini-grids, and modern energy cooking equipment to customers in low-income and last-mile communities. A coalition of committed global investors and donors created the Fund to protect the industry’s progress toward United Nations Sustainable Development Goal 7: universal energy access. 

“Together, CDC, DFC, and FMO are mobilizing our capital to ensure the survival of small and medium social enterprises extending energy access to the 800 million people living without power. The EARF’s flexible and innovative financial structure blends different types of capital to offer low-interest loans and liquidity while the health and economic consequences of the pandemic continue,” said Geoff Manley, Head of the Energy Access and Efficiency team at CDC Group.

SIMA’s analysis of energy access companies eligible for relief funding across 50 countries shows that 77% of potential borrowers require emergency financial assistance to stay afloat. Without it, many companies may be forced to take drastic measures such as pausing operations, laying off staff, or permanently closing their doors, which would disrupt energy access for customers at a particularly difficult time. 

“We have innovated to create a robust underwriting approach that allows us to rapidly provide relief loans to companies that most need our support during the crisis. We have also implemented into our investment approach a comprehensive ESG process, including developing a gender action plan and supporting the companies to deal with COVID-19 challenges,” said Asad Mahmood, the CEO of SIMA, the EARF Fund Manager. 

The EARF is an extraordinary example of stakeholders uniting in crisis, even as budgets were constrained and investments were at risk. “We have proudly worked alongside IKEA Foundation, The Rockefeller Foundation, IFC, U.K. Aid, USAID, and the World Bank to leverage our collective grant capital to de-risk and catalyze senior investors in the Relief Fund. Small-scale renewable energy enterprises and innovators are scrambling to serve some of the world’s poorest communities. We hope similar collaborations follow this sector landmark — much more capital will be needed in the coming months to continue progress toward universal energy access,” said Sam Parker, Director at Shell Foundation.

The Energy Access Relief Fund (EARF) aims to safeguard gains made in the once-booming energy access sector. In the last decade, the industry has grown six-fold, providing 470 million people with energy access, employing more than 370,000 in green jobs and avoiding 74 million tonnes of greenhouse gas emissions. 

“The EARF is a critical tool to help us build back better and tackle climate change. It will ensure that social enterprises can continue to provide renewable energy solutions and advance climate mitigation and resilience across sub-Saharan Africa and Asia,” said Yannick Glemarec, Executive Director at the Green Climate Fund. “GCF is proud to be part of this innovative partnership, and delighted that it is moving ahead to launch.”

Through creativity, financial innovation, and fiscal discipline, the EARF intends to protect social enterprises that combat energy poverty and are leading the renewable energy transition across sub-Saharan Africa and Asia. 

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About the Energy Access Relief Fund: The Energy Access Relief Fund (EARF) is a first-of-its-kind collaboration among major donors and investors in the energy access sector to address the liquidity crunch that energy access enterprises face because of the fallout from the COVID-19 pandemic. With a target of $80 million, the EARF aims to provide subordinated, low-interest debt to more than 90 energy access companies in need in sub-Saharan Africa and Asia. It is a global partnership of 16 governments, foundations, and investors, including Acumen, CDC Group, FMO, Green Climate Fund (GCF), IKEA Foundation, International Finance Corporation (IFC), Power Africa, Shell Foundation, Swedish International Development Cooperation Agency (SIDA), Social Investment Managers and Advisors (SIMA), Swiss Agency for Development and Cooperation (SDC), The Rockefeller Foundation, USAID, U.S. Development Finance Corporation (DFC), U.K. Aid, and World Bank Group. The EARF is also part of the 2021 Roadmap of the World Economic Forum’s COVID Alliance for Social Entrepreneurship that mobilizes support for social entrepreneurs who are making a difference on the frontline of the COVID-19 crisis.

About Acumen: Acumen is changing the way the world tackles poverty. We invest patient capital in inclusive, early-stage social enterprises that serve people in poverty and enable them to transform their lives. We share our ethos, principles, and practices to train the next generation of leaders through Acumen Academy. We scale the most effective solutions to systemic poverty through for-profit, returnable impact funds, managed by Acumen Capital Partners, totaling more than $150 million. Founded in 2001 by Jacqueline Novogratz, Acumen has invested more than $137 million in 139 companies across Africa, Latin America, South Asia, and the United States. For more information, visit: www.acumen.org.

30 August 2021: The Uganda National Renewable Energy and Energy Efficiency Alliance (UNREEEA) and the Alliance for Rural Electrification (ARE) have signed a Memorandum of Understanding (MoU) to work together to foster the renewable energy sector in Uganda and East Africa. The MoU sets out the shared goals of the two organisations and areas of collaboration through the identification and development of programmes and projects.

In view of the MoU, the associations will collaborate on several activities, including joint advocacy for renewable energy policies in Uganda to create a conducive market environment for decentralised renewable energy (DRE) actors, accompanying and contributing to the government’s efforts to achieve renewable energy and energy access targets as well as developing joint publications, market briefs or research papers on related topics.

In this respect, the associations aim to cooperate on targeted skills development and capacity building activities for renewable energy stakeholders in Uganda to create local jobs and enhance the capacity of the sector to raise increased financing for renewable energy projects and businesses. This will be achieved by spearheading in-person or virtual “DRE Investment Academies” or similar trainings for Ugandan and international DRE project developers and other stakeholders, to provide additional fundraising and technical support.

Finally, the MoU states that the partners will support services for Ugandan renewable energy actors who work to address energy access, energy security and climate change challenges in Uganda and conduct research to improve the market for renewable energy technologies.

UNREEEA Chairman, Alexander Komakech Akena, said that: " It is a great opportunity to partner and work with ARE through this MoU. This opens a large door to learn, share, and leverage lessons from each other to develop Uganda’s renewable energy sector. Especially to leaving no one behind through universal energy access even as threats of a changing climate mounts. We are pleased with the step and look forward to great collaboration with ARE.’’

ARE CEO, David Lecoque, underlined that: “The MoU paves the way for positive cooperation between ARE and UNREEEA. This is an excellent opportunity to share knowledge, learn from each other and work together to increase access to renewable energy and energy security as well as to curb the effects of climate change in Uganda and East Africa. We look forward to a strong collaboration with our friends and colleagues in Uganda.”

ARE Africa Lead, Gabriele Pammesberger, said: “We are delighted to enter into this partnership with UNREEEA to strengthen our collaboration towards the development of a thriving, inclusive and sustainable renewable energy sector in Uganda and accelerate access to clean and affordable energy that drives economic empowerment of rural communities. Based on shared values and objectives we are looking forward to closely cooperate in the areas of policy & advocacy, private sector business development support, innovation, and capacity building & skills development.”

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About Alliance for Rural Electrification (ARE): The Alliance for Rural Electrification (ARE) is an international business association with the aim to promote a sustainable decentralised renewable energy industry for the 21st century, activating markets for affordable energy services, and creating local jobs and inclusive green economies. ARE enables improved energy access through business development support for more than 185 Members along the whole value chain for off-grid technologies.

About Uganda National Renewable Energy and Energy Efficiency Alliance (UNREEEA): The Uganda National Renewable Energy and Energy Efficiency Alliance (UNREEEA) is a coalition of industry associations within the renewable energy and energy efficiency space in Uganda. It was incorporated in 2015 to consolidate the voices of the many clean energy associations for the adoption of renewable energies.

UNREEEA aims at the enhancement of skills development and management, synergy and continuous improvement in policy and business environment through effective and constructive engagement with stakeholders. Thus, promoting sustainable economic development and the use of renewable energy solutions.

• Funding will enable SPS to offer cleaner, cheaper solar energy to more businesses across sub-Saharan Africa.

23 August 2021: Gridworks, the UK’s developer and investor in African electricity networks, and New GX, the South African investment firm, have today announced US$40 million of new investment in the Gridworks portfolio company, Sustainable Power Solutions Investments (“SPS”).

SPS works with commercial and industrial (C&I) clients across sub-Saharan Africa to fund, develop, build and operate solar power technologies, including battery storage, that provide consistent, affordable clean energy. SPS has over 45MW of solar and more than 15MWh of battery storage (in operation and under construction) in South Africa, Namibia, Kenya and Indian Ocean islands, spread across hospitality, telecoms, retail and other sectors.

The investment announced today also sees Gridworks (established by CDC, the UK’s DFI) become a majority shareholder in the company, while New GX, which is owned by the Pitje family trust, and represented by Khudusela Pitje, will replace current minority shareholders, Trigen Group and Genfin. Christo Wiese’s Titan Group will remain an investor in the business. The long-term funding provided by Gridworks and New GX will enable the company to deepen its presence in existing markets and expand across Sub-Saharan Africa. The company is targeting building an additional 100MW of projects. As part of New GX’s investment Khudusela Pitje and Carin van Woudenberg will join the SPS board.

Lack of reliable grid power has led to more than half of businesses in sub-Saharan Africa using diesel generation to ensure certainty of supply. With more than three quarters of total energy demand in Africa coming from commercial and industrial customers, the need is clear. Solar PV and battery storage solutions are increasingly providing a viable and cheaper alternative for many businesses that see the value in being able to benefit from greener, more consistent power. SPS is a leader in the sector and well-positioned to accelerate the use of solar energy with Gridworks’ and New GX’s support and capital.

The US$40m of new capital for SPS reflects Gridworks and New GX’s relative shareholdings in the company, with Gridworks committing $US22m and New GX US$18m. In addition, Gridworks is investing $9m to become a majority shareholder.  This brings Gridworks total commitment to SPS in this transaction to US$31m. The introduction of New GX will also bring the local empowerment ownership in the company above 42%.

Gridworks first invested in SPS (then known as Mettle Solar Investments) in late 2019. Since then, the company has built over 22MW of grid-tied projects in Southern Africa and Kenya and 4.2MW / 8.7MWh of islanded projects in the Seychelles, including some of the largest off-grid systems using Tesla’s Powerpack technology in Africa for its customers. Gridworks also appointed the experienced Kenyan businessman and former CEO of Kenya Airways, Mbuvi Ngunze as Chairman of SPS. In the last financial year, SPS’s operating plants reduced carbon emissions by more than 11.7 million kilogrammes.   

Announcing the new investment, Gridworks CEO Simon Hodson said:

“We’re delighted to become the majority shareholder in SPS and support the company in the next stage of its development. Since first investing in 2019, we’ve helped the company become one of only a small set of African developers operating sustainably to finance, build, and operate grid-tied and battery-backed, off-grid systems. We’re excited that New GX Capital have decided to invest in the business alongside us. They have a wealth of experience in long-term infrastructure investing and will be a strong partner who share our ambitions for SPS. Their investment and expertise will be invaluable as SPS expands into new markets across Africa.”

“Gridworks exists to increase the quantity and quality of power in Africa and our mandate covers transmission and distribution infrastructure, as well as off-grid solutions like SPS.  SPS, and the C&I sector as a whole, can provide green, reliable power to businesses that will go on to create jobs and economic opportunity.”

Khudusela Pitje, CEO of New GX Capital added:

“We are delighted to partner with SPS and Gridworks to unlock our renewable energy vision in the commercial & industrial sector across the continent. We will bring our in-depth knowledge as an infrastructure investor and increase SPS’s footprint in the telecoms and industrial sectors. We are driven by a sustainable tomorrow which we believe will also drive industrialisation within the continent.

“In South Africa, regulatory certainty is key to attracting capital.  We believe President Ramaphosa’s announcement for lifting the license requirements around100MW embedded energy opportunities will drive job creation (especially amongst the youth); private sector investment in the Telecoms sector; and indirectly assist utilities to generate additional capacity without government backed guarantees”

Francois Van Themaat, CEO of SPS said:

“We are thankful to Gridworks and CDC Group for their continued strong support of our business. Their initial investment was made just as the world went into lockdown due to the COVID pandemic and their support allowed us to grow our business rapidly during a very challenging period.

“During the last quarter we have consolidated our funding and engineering businesses under the single ‘Sustainable Power Solutions’ brand which, combined with the new capital injected by shareholders, will allow us to expand our fully integrated solar PV and battery storage offering across Sub Saharan Africa. 

“We look forward to working closely with Khudusela Pitje and the New GX team to move the business to the next level. They have bought into our overall vision for the company, and we are eager to learn from their experiences in building infrastructure businesses.”

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About Gridworks: Gridworks develops and invests in Africa’s electricity networks. Wholly owned and capitalised by CDC, the UK’s development finance institution, Gridworks aims to invest over US$300m of long-term capital in commercially sustainable infrastructure businesses, bringing affordable, reliable power to Africa’s people and its businesses.

Gridworks targets equity investments in transmission, distribution and distributed renewable energy, and is a partner to governments, utilities, and companies in the power sector. Despite recent investment and improvements in electricity generation, the lack of progress in developing transmission and distribution infrastructure is a significant bottleneck to economic development across Africa. Gridworks was launched in 2019 to play its part in tackling this challenge.

Alongside its investment in SPS, Gridworks recently created Moyi Power. Moyi will develop, build and operate hybrid-solar power generation and distribution infrastructure in the DRC.

About New GX: New GX Capital is a 100% black owned and managed investment holding company (indigenous investors owned), founded in 2005 by former JPMorgan banker Khudusela Pitje, son of HM Pitje. New GX is a diversified business focused on utilities infrastructure, 4PL and supply chain technology solutions. New GX, co-founding partner of DFA in 2007, has led the transformation of the telecoms sector benefitting RSA manufacturing and SMMEs. It is now seeking to make an impact on the energy sector in Africa.

New GX is also a proud supporter of the HM Pitje Foundation which drives its CSI vision of transforming township schools and empowering/educating scholars for the future.

About SPS: SPS Investments previously operated under the ‘Mettle Solar’ brand. We provide innovative funding to give businesses across Sub-Saharan Africa access to high quality solar and battery solutions. In 2015, we acquired a 50% interest in Sustainable Power Solutions (SPS), one of Southern Africa’s leading solar engineering firms.

This acquisition allowed us to provide seamless funding and engineering solutions to our clients, all within one group. Since 2021, Mettle Solar and Sustainable Power Solutions started to conduct their respective businesses under the single ‘Sustainable Power Solutions (SPS)’ brand.