Zafiri Launches $176 Million Fund to Scale Off-Grid Energy Investment in Africa

A new blended finance platform has launched with $176 million in committed capital to accelerate investment in distributed renewable energy (DRE) across sub-Saharan Africa, targeting one of the sector’s biggest barriers: access to long-term equity.

Unveiled at the Africa Energy Forum in Cape Town, Zafiri will provide patient equity to companies developing mini-grids, solar home systems, productive-use energy technologies and clean cooking solutions. The fund is managed by African climate investment firm Inspired Evolution and aims to expand electricity access in communities beyond the reach of national grids.

The platform is expected to facilitate new electricity connections for more than 10 million people by 2030, with a long-term ambition of reaching 30 million people over its lifetime. More than half of its investments will support mini-grids, solar home systems and clean cooking technologies.
Zafiri has been established to address a persistent financing gap facing distributed renewable energy companies. While debt financing has become increasingly available, many developers continue to struggle to secure the equity needed to scale operations and attract additional investment.

The initiative forms part of Mission 300, the World Bank Group and African Development Bank’s joint programme to provide electricity access to 300 million people across sub-Saharan Africa by 2030. By strengthening private-sector investment, Zafiri is expected to support job creation, improve energy access for businesses and stimulate local economic development.

The fund launches with backing from a coalition of development finance institutions, philanthropic organisations and commercial investors. Founding shareholders include the International Finance Corporation (IFC), the African Development Bank Group, The Rockefeller Foundation, Trade and Development Bank Group, the Nordic Development Fund, the John D. and Catherine T. MacArthur Foundation, and FirstRand Limited, the only commercial bank participating in the consortium.

Zafiri plans to increase its capital base to USD300 million within the next 12 months, with a longer-term objective of reaching USD1 billion.
The launch reflects growing confidence in blended finance as a mechanism for mobilising private capital into Africa’s off-grid energy sector. As countries seek to expand electricity access while advancing their clean energy ambitions, distributed renewable energy technologies are expected to play an increasingly significant role in reaching underserved communities and supporting sustainable economic growth.