As climate shocks intensify and investment gaps widen, Africa faces the dual task of building resilience and ensuring equitable growth. Acumen’s new KawiSafi fund answers this challenge with a $90 million platform dedicated to scaling businesses that deliver clean energy and climate solutions to underserved communities. Supported by global institutions and philanthropic foundations, the fund reflects a growing recognition that Africa’s future must be shaped by investment strategies that deliver both returns and measurable impact.
The fund is not only a financial vehicle. It represents a chance to address one of the greatest inequalities of our time: Africa is among the regions most affected by climate change yet receives only 6 percent of global investment flows. At the same time, droughts, floods and rising seas are increasing risks for millions of people, with studies warning that climate shocks could push an additional 100 million people into poverty worldwide. Against this backdrop, the KawiSafi fund aims to demonstrate that climate solutions can go hand in hand with inclusive economic growth.
This new fund follows the success of the first KawiSafi fund launched in 2016, which deployed $67 million to expand clean energy access across underserved communities. The second fund, known as Fund II, builds on those lessons while taking a broader view. Its pipeline includes energy transition, clean transportation, nature-based carbon solutions and distributed renewable energy. It also focuses on sectors like clean cooking and access to carbon finance, which can bring direct improvements to daily life for millions of households. The ambition is to impact 50 million people while averting 50 million tons of CO2 at scale.
The investment model reflects Acumen’s belief that solving poverty and climate challenges requires more than grants and aid. Fund II provides catalytic equity financing to businesses that create low-carbon pathways for resilience in underserved communities. By offering equity, rather than short-term aid, the fund gives entrepreneurs the capital they need to grow their businesses and reach more people. At the same time, it ensures that investors benefit from capital appreciation while achieving measurable climate impact.
Fund II has been made possible through the support of several key partners. Anchor investors include the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), first-loss capital from the Green Climate Fund, the Schmidt Family Foundation and funding from the Quadrature Climate Foundation. This diverse group of backers highlights the role of blended finance in unlocking private and institutional capital for climate solutions. Each dollar of concessional funding reduces the risk for commercial investors, helping to attract larger flows of investment into sectors that are critical for Africa’s future.
The timing of this milestone is significant. Expanding energy access across Africa will require far more than traditional grid expansion. Millions of people in rural and remote areas remain excluded from national energy systems, limiting their opportunities for growth and stability. The KawiSafi fund is addressing this by supporting companies that deliver distributed clean energy solutions and other innovative models that can scale quickly. These businesses are not just providing power or services, they are creating new industries, new jobs and new pathways for climate resilience.
Acumen’s leadership emphasizes that the fund is a signal to markets worldwide that capital can and must flow toward an inclusive, low-carbon future. Entrepreneurs supported by the fund are proving that it is possible to transform climate risks into business opportunities while lifting communities out of poverty. The African Development Bank has also underlined the importance of the initiative, framing it as part of a broader commitment to mobilize private capital and accelerate Africa’s clean energy future.
Behind the financial structures and investment strategies lies a clear human story. Access to clean energy means children can study at night, families can cook safely, farmers can reduce losses with cold storage and small businesses can power their operations. Clean transportation can reduce costs and pollution while creating new economic networks. Nature-based carbon solutions not only capture carbon but also support ecosystems that sustain livelihoods. Each investment made through the KawiSafi fund has the potential to ripple across communities and contribute to long-term resilience.
Acumen brings nearly two decades of experience to this mission. Since 2001, it has invested in transformational companies, built sustainable markets and helped prepare leaders to build inclusive futures. Its approach combines moral imagination with practical investment strategies and the results speak for themselves. Acumen’s investments have already impacted more than half a billion lives in some of the hardest-to-reach places on the planet. The launch of Fund II shows that the organization is not slowing down but doubling its efforts to address the urgent challenges of climate change and poverty together.
The new KawiSafi fund is more than a financial milestone. It is a vote of confidence in African entrepreneurship and a commitment to building markets that serve both people and the planet. By channeling resources into climate solutions, the fund sets the stage for a future where Africa is not seen only as vulnerable to climate risks but as a leader in creating low-carbon, climate-resilient economies. With the backing of committed partners and a clear strategy for scale, Fund II is well placed to help shape the continent’s energy transition and unlock opportunities for millions of people.
