Africa’s energy access gap remains one of the continent’s most urgent challenges. Over 600 million people still lack electricity, but a new $176 million fund aims to change that. Launched in Cape Town, Zafiri targets 30 million people by expanding renewable energy access across sub-Saharan Africa. The initiative, managed by Inspired Evolution, focuses on communities beyond traditional power grids, offering long-term equity financing to distributed energy companies. As dusk settled over Cape Town and energy leaders gathered beneath the shadow of Africa’s persistent electricity deficit, a coalition of global development institutions, philanthropies, and private investors unveiled the fund, marking a key moment in the continent’s energy transition. The initiative brings together multilateral organizations, private firms, and philanthropies, emphasizing a collaborative approach to overcoming systemic barriers in the off-grid energy sector.
Related: Conoil halves dividend as profit nosedives
Zafiri’s model emphasizes patient capital, a scarce resource for off-grid energy ventures. Founding investors include the International Finance Corporation, African Development Bank, Rockefeller Foundation, and others. Together, they aim to scale mini-grids, solar home systems, and clean cooking technologies. At least half the fund will prioritize mini-grids and solar systems, addressing gaps where conventional infrastructure fails. Managed by Inspired Evolution, an African climate investment firm, Zafiri is designed to address one of the most persistent challenges facing the continent’s off-grid energy sector: limited access to patient, long-term capital needed to scale operations and attract additional financing. The fund’s structure reflects a deliberate effort to align the interests of diverse stakeholders, including multilateral development institutions, development finance institutions, and private sector actors, to create a sustainable financing ecosystem.
The African Development Bank described the launch as a timely intervention given the critical role distributed renewable energy is expected to play in expanding electricity access. Kevin Kariuki, vice president for power, energy, climate, and green growth at the African Development Bank, emphasized that the platform would provide long-term equity financing needed to scale renewable energy companies and accelerate the objectives of Mission 300.
Related: How to perfectly create a catchy resume or CV ?
Wayne Keast of Inspired Evolution described Zafiri as a blend of multilateral, philanthropic, and private expertise. The Rockefeller Foundation emphasized de-risking investments in underserved markets, while Trade and Development Bank noted the need for more equity financing for renewable ventures. Ethiopis Tafara, IFC vice president for Africa, said the initiative demonstrates the impact that coordinated partnerships can have in addressing Africa’s energy challenges. He noted that by supporting distributed renewable energy companies, the platform would help power homes and businesses while creating jobs and economic opportunities across the continent. “As these businesses grow, Zafiri will expand access to clean energy for up to 30 million people, while creating jobs and inclusive economic activity across the continent,” he added.
FirstRand Limited, the only commercial bank among founding investors, called the initiative “highly innovative.” Mary Vilakazi of FirstRand said the fund aligns with its strategy to partner with development institutions. Ghita Benabderrazik of the Rockefeller Foundation stressed the platform’s role in building a resilient financing ecosystem. Charles Coustan of the MacArthur Foundation called expanding clean energy access a “critical global priority.” The Rockefeller Foundation said its participation reflects efforts to mobilize capital into an underfinanced segment of the energy market. Ghita Benabderrazik, managing director of innovative finance at the foundation, said Zafiri would help de-risk investment in distributed renewable energy businesses serving communities across sub-Saharan Africa. She added that the initiative aims to create a more resilient financing ecosystem capable of expanding economic opportunity and supporting sustainable development.
Related: FG pays contractors in debt clearance push
Admassu Tadesse of TDB Group said the fund provides “patient capital” for long-term growth. The Nordic Development Fund called the launch a milestone in scaling renewables. Inspired Evolution’s model seeks to mobilize private and development capital for Africa’s energy transition. With Zafiri’s launch, the continent moves closer to addressing a challenge that has long outpaced traditional solutions. Trade and Development Bank Group also highlighted the importance of increasing risk capital available to renewable energy and clean cooking companies, many of which struggle to secure sufficient equity financing for expansion. Admassu Tadesse, president and managing director of TDB Group, said the platform would provide much-needed patient capital to support long-term growth while advancing climate-aligned development across member states. The Nordic Development Fund described the launch as an important milestone in efforts to scale distributed renewable energy across Africa and attract additional commercial investment into underserved energy markets.