Zafiri launches with $176M to bring power to Sub-Saharan Africa
What's the deal? Zafiri, a blended permanent-capital vehicle targeting electricity access across Sub-Saharan Africa, has launched commercially with $176 million. It will be managed by Cape Town-based climate firm Inspired Evolution, which oversees more than $1.15 billion across 21 African countries.
Who's backing it? Founding shareholders include IFCDealroom has a profile for this one. Try Dealroom →, the African Development Bank Group (AfDB), The Rockefeller Foundation, Trade and Development BankDealroom has a profile for this one. Try Dealroom → Group, Nordic Development FundDealroom has a profile for this one. Try Dealroom →, the MacArthur Foundation, and FirstRandDealroom has a profile for this one. Try Dealroom → Limited. The AfDB committed $40 million, including $10 million in junior equity from its Sustainable Energy Fund for Africa (SEFA).
What's the endgame? Zafiri will deploy patient equity into distributed renewable energy companies — mini-grids, solar home systems, productive-use energy solutions, and clean cooking enterprises. At least 50% of its capital is earmarked for mini-grids, solar home systems, and clean cooking.
Why now? The launch supports Mission 300, an initiative co-led by the World Bank Group and AfDB to expand electricity access to 300 million people in Sub-Saharan Africa by 2030.
How does it work? The vehicle uses concessional junior equity from SEFA to de-risk private participation and crowd in commercial capital. The aim is to channel long-term equity into companies serving communities beyond the reach of traditional grids.
Zafiri expects a final close of $300 million within 12 months, with a longer-term ambition to scale to $1 billion.
The signal: Blended finance is emerging as a tool to bridge one of Africa's toughest energy funding gaps, pairing development capital with commercial money to make off-grid power investable at scale.
Read more: hunton.com
Image credit: DFID - UK Department for International Development
