IFC to Back Acumen Fund for Energy Access in Africa With $25M

Daba Finance/IFC Pledges $25M to Acumen Fund for Energy Access in Africa

AFRICAN STOCKS AND FINANCEOctober 15, 2024 at 11:15 AM UTC

TLDR

IFC commits $25 million to Acumen's Hardest-to-Reach (H2R) Fund for energy access in Sub-Saharan Africa
Acumen's H2R Fund blends commercial investment, concessional capital, and grants for financial and social impact
Yellow Malawi receives $2 million to extend solar energy access to 182,000 individuals with IFC's investment aimed at sustainable development in areas with energy poverty.

The International Finance Corporation (IFC) has committed up to $25 million to Acumen’s Hardest-to-Reach (H2R) Fund, a $200 million initiative aimed at improving energy access in underserved regions of Sub-Saharan Africa.

Acumen’s H2R Fund uses a blended finance model, combining commercial investment, concessional capital, and grants to drive financial and social returns. One notable beneficiary, Yellow Malawi, secured $2 million from the fund, enabling it to expand solar energy access to approximately 182,000 people.

The IFC’s investment, placed in the senior tranche of the fund, aligns with its broader goal of supporting sustainable development in areas with significant energy poverty.

Key Takeaways

The H2R Fund, designed to electrify 72 million people over the next decade and avoid 5 million tonnes of CO2 emissions, targets off-grid solar companies in 16 countries. The fund, divided into senior, mezzanine, and junior tranches, also includes a $20 million grant facility to incentivize solar companies to lower costs for end-users by meeting specific key performance indicators (KPIs).

Finance

Acumen

IFC

Yellow Malawi

Solar Energy

Energy Access

Venture Capital

Private Equity

Blended Finance