For years, the conversation around Africa’s electricity gap has focused on extending power grids. Increasingly, attention is shifting to a different question: how to finance the companies already delivering energy where traditional infrastructure cannot reach. The launch of Zafiri, a $176 million clean energy investment vehicle, signals a growing recognition that closing the continent’s energy gap will require not only innovation in technology but also innovation in capital.
Officially launched at the Africa Energy Forum in Cape Town, Zafiri has been established to provide long-term equity financing to distributed renewable energy companies operating across Sub-Saharan Africa. The platform is backed by a consortium of development finance institutions, philanthropic organizations and private sector partners seeking to accelerate electricity access for underserved communities while supporting the growth of Africa’s clean energy sector.
Managed by Cape Town-based climate investment firm Inspired Evolution, the vehicle has been designed as a blended permanent-capital platform. Unlike traditional investment funds that operate under fixed timelines and exit pressures, Zafiri can hold investments for as long as necessary, allowing energy companies the time and support needed to scale sustainably.
The platform aims to connect more than 10 million people to electricity by 2030, with a long-term goal of reaching 30 million people over its lifetime. Investments will target companies developing mini-grids, solar home systems, productive-use energy solutions and clean cooking technologies. At least half of the capital will be directed specifically toward mini-grids, solar home systems and clean cooking enterprises.
Unlocking Growth for Renewable Energy Companies
The launch comes as distributed renewable energy solutions increasingly move to the center of Africa’s electrification strategy. While national grid expansion remains important, off-grid and mini-grid systems are widely viewed as the fastest and most cost-effective way to reach many rural and peri-urban communities.
The initiative aligns closely with Mission 300, the joint World Bank Group and African Development Bank Group programme that aims to connect 300 million people across Sub-Saharan Africa to electricity by 2030.
Dr Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at the African Development Bank, said the launch comes at a critical moment, noting that mini-grids and stand-alone solar home systems are expected to account for at least half of all new electricity connections by 2030.
Yet despite growing demand for renewable energy solutions, many companies operating in the sector face a common challenge: access to equity capital. While debt financing is often available, businesses frequently struggle to secure the long-term investment required to expand operations and reach more customers.
Admassu Tadesse, President and Managing Director of TDB Group, said equity constraints continue to limit the ability of distributed renewable energy companies to access long-term debt and scale their impact. Zafiri has been specifically structured to address this financing gap and provide the patient capital needed for growth.
The founding shareholders behind the platform include the International Finance Corporation (IFC), the African Development Bank Group through its Sustainable Energy Fund for Africa (SEFA), The Rockefeller Foundation, TDB Group, the Nordic Development Fund, the MacArthur Foundation and FirstRand, which is the only commercial bank among the founding investors.
Building a Long-Term Financing Model
The $176 million launch marks the beginning of a broader growth strategy. Zafiri aims to reach a final close of $300 million within the next twelve months and has a longer-term ambition of scaling to $1 billion.
A key feature of the platform is its blended finance structure, which combines philanthropic, development finance and commercial capital. SEFA has provided catalytic junior equity intended to absorb early risks and attract additional institutional and private investors into the sector.
Ghita Benabderrazik, Managing Director of Innovative Finance at The Rockefeller Foundation, said the foundation’s contribution is designed to help de-risk an underfunded market and strengthen the long-term financing ecosystem for distributed renewable energy businesses.
Similarly, Satu Santala, Managing Director of the Nordic Development Fund, said catalytic financing can help attract commercial capital that has historically been absent from parts of the distributed renewable energy sector while improving outcomes for climate-vulnerable communities.
Ethiopis Tafara, IFC’s Vice President for Africa, emphasized the importance of patient capital, arguing that expanding access to reliable electricity at scale requires long-term funding and strong partnerships. He described Zafiri as an example of how development institutions, philanthropies and private investors can work together to address complex development challenges.
The participation of FirstRand is also significant. Group CEO Mary Vilakazi said the investment reflects the bank’s commitment to working alongside development finance institutions and other partners to help meet Africa’s growing energy needs.
Wayne Keast, Managing Partner at Inspired Evolution, described Zafiri as an innovative partnership created under Mission 300 that combines the strengths of multilateral institutions, development finance organizations, philanthropic investors and private sector expertise. He said the platform reflects the firm’s broader mission of using long-term blended finance to accelerate energy access across underserved communities.
For hundreds of millions of Africans still living without reliable electricity, the significance of the initiative extends beyond the size of the investment. By addressing one of the most persistent financing barriers facing renewable energy companies, Zafiri has the potential to accelerate electrification, support economic activity and improve livelihoods across the continent. If successful, it could become a model for how blended finance can help unlock the capital needed to close Africa’s energy access gap while advancing a cleaner and more inclusive energy future.
