KawiSafi Ventures Fund

  • Cross-cutting
  • Under implementation
Date approved
05 Nov 2015
Est. completion
16 Aug 2028
ESS Category
Intermediation 3
Financing
Private sector
Entity
Acumen Fund, Inc.

Overview

Creating a new investment fund, KawiSafi, to drive off-grid solar power in East Africa. Investing in 10-15 clean energy companies, initially in Rwanda and Kenya, providing household solar technologies. Aiming to drive a low-carbon paradigm shift and leapfrog fossil fuel grids to clean energy, using equity capital from GCF to leverage investment, and grant capital to set up a Technical Assistance Facility.

Rwanda has 70% of its population living off-grid, and even a planned massive investment from the government will leave over 3.5 million without power. Energy costs are high, both for on- and off-grid customers, because of a heavy reliance on imported oil and kerosene. In Kenya, 80% live off-grid with 35 million without access to affordable and reliable electricity. Lighting costs in particular are very high for rural off-grid Kenyans, who spend around 26% of their income on kerosene, which is expensive, dangerous, and harmful to health. Rapid population growth is increasing demand for electricity and placing further demands on grid supply. The Fund will consider expansion to Uganda over time, which has even lower electrification levels and heavy reliance on fuel wood for cooking.

The KawiSafi portfolio will be the world’s first climate change fund targeting low-income populations in developing countries. Investments of USD 2-10 million per company will be made in 10-15 clean energy small- and medium-sized enterprises. Lack of electricity and high kerosene use will be addressed through affordable clean household solar energy solutions such as solar lanterns, solar home systems, and solar mini-grids. KawiSafi will also invest in other parts of the ecosystem such as consumer finance, mobile payment, and metering/monitoring technologies. The Technical Assistance Facility will identify and address core needs of portfolio companies to support their scale and financial viability.

The project has an estimated lifespan of 12 years.

Result areas

Countries

Regions

Priority groups

Project timeline

  • Pipeline

    197 days

    • Concept note received

    • Funding proposal received

  • Approved

    286 days

    • Approved by GCF Board

    • Cleared by iTAP

    • Legal opinion on AE's Internal Approval

    • FAA executed

  • Under implementation

    3,591 days so far

    • FAA effective

  • To be completed

    793 days to go

    Not started

  • Total project value $ 110 million

  • Tonnes of CO2 equivalent avoided 1.5 million

  • Total number of beneficiaries 10.1 million

Financing

GCF-financing

0.0%

USD

Co-financing

0.0%

USD

USD 110 million

Show details

GCF-financing

94% disbursed

  • Equity USD 20,000,000
  • Grant USD 5,000,000
  • Total GCF-financing USD 25,000,000

Co-financing

  • Equity USD 75,000,000
  • Grant USD 5,000,000
  • Equity USD 5,000,000
  • Total co-financing USD 85,000,000

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Documents

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