Zafiri Launches With USD 176 Million To Expand Renewable Energy Access Across Sub-Saharan Africa

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A major new investment platform aimed at expanding electricity access across sub-Saharan Africa has officially been launched at the Africa Energy Forum in Cape Town, South Africa. Known as Zafiri, the blended finance vehicle has secured an initial commercial launch of USD 176 million and is designed to support renewable energy projects that can bring reliable electricity to millions of people who currently lack access to power.

The initiative is being managed by Inspired Evolution, a leading African climate-focused investment firm that was appointed by investors to oversee the platform. Zafiri brings together a diverse group of development finance institutions, philanthropic organisations, and private-sector partners.

Founding shareholders include the International Finance Corporation (IFC), a member of the World Bank Group, the African Development Bank Group (AfDB), The Rockefeller Foundation, Trade and Development Bank Group (TDB Group), Nordic Development Fund (NDF), the John D. and Catherine T. MacArthur Foundation, and FirstRand Limited.

The launch represents an important step forward for Mission 300, a major initiative jointly led by the World Bank Group and the African Development Bank Group. Supported by organisations including The Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All, Mission 300 aims to provide electricity access to 300 million people across sub-Saharan Africa by 2030.

Zafiri’s primary goal is to address one of the continent’s most significant development challenges: the lack of access to reliable and affordable electricity. The platform will focus on investing patient, long-term equity capital into distributed renewable energy companies and projects. These include mini-grids, solar home systems, productive-use energy solutions, and clean cooking technologies that can serve communities beyond the reach of traditional electricity networks.

At least half of Zafiri’s capital is expected to be directed toward mini-grids, solar home systems, and clean cooking initiatives. These technologies are increasingly viewed as essential tools for expanding energy access in rural and underserved areas where extending conventional grid infrastructure may not be economically viable.

One of the key challenges facing the distributed renewable energy sector in Africa has been a shortage of long-term equity financing. While debt financing has become more widely available in recent years, many companies continue to struggle to secure the patient capital needed to scale operations and attract additional investment.

Zafiri has been created specifically to help bridge this gap by providing long-term support to businesses working to deliver clean and affordable energy solutions.Following its initial launch at USD 176 million, the platform expects to reach a final close of USD 300 million within the next year. Looking further ahead, the long-term ambition is to scale the vehicle to USD 1 billion, significantly increasing the resources available for renewable energy projects across the continent.

Supporters of the initiative believe it has the potential to make a substantial impact on both energy access and economic development. According to IFC Vice President for Africa Ethiopis Tafara, connecting millions of Africans to reliable power will require large-scale, patient capital, and Zafiri demonstrates how collaboration between public and private investors can help achieve that goal.

He noted that by supporting distributed renewable energy companies, the platform could help provide clean energy access to as many as 30 million people while creating jobs and supporting economic growth.The African Development Bank also highlighted the importance of distributed renewable energy in meeting future electricity demand.

The institution estimates that technologies such as mini-grids and standalone solar home systems could account for at least half of all new electricity connections in sub-Saharan Africa by 2030. Officials described Zafiri as a timely initiative that can provide the long-term equity needed to accelerate the growth of companies operating in these sectors.Inspired Evolution believes the platform represents a unique partnership that combines the strengths of multilateral development institutions, philanthropic organisations, and private-sector investors.

According to the firm, the blended finance structure will help accelerate the deployment of clean energy solutions while supporting a just energy transition across Africa. The platform is also expected to align closely with national energy strategies and development priorities in participating countries.The Rockefeller Foundation, one of the founding investors, described Zafiri as an innovative approach to addressing one of the most persistent barriers to energy access.

By providing catalytic capital, the foundation aims to help reduce investment risks, attract additional long-term funding, and strengthen the overall financing ecosystem for distributed renewable energy businesses operating in underserved markets.Trade and Development Bank Group also emphasised the importance of increasing equity investment in renewable energy and clean cooking companies.

The institution noted that many of these businesses face significant capital constraints that limit their ability to expand and leverage additional debt financing. By providing patient capital, Zafiri is expected to strengthen the financial foundations of these companies and support sustainable long-term growth.

Similarly, the Nordic Development Fund highlighted the platform’s potential to mobilise greater levels of commercial investment into sectors that have historically received insufficient funding. The organisation believes successful implementation could improve the lives and livelihoods of climate-vulnerable communities while accelerating the adoption of clean energy technologies.The MacArthur Foundation also expressed support for the initiative, noting that expanding access to affordable, reliable, and sustainable energy remains one of the world’s most important development priorities.

Through collaboration with impact investors and development institutions, the foundation expects Zafiri to accelerate the flow of capital toward projects that can generate both social and environmental benefits.FirstRand Limited, the only commercial bank among the founding investors, described its participation as part of a broader strategy to work alongside global development finance institutions and capital providers to address Africa’s energy challenges.

The bank believes innovative financing structures such as Zafiri will play an increasingly important role in meeting the continent’s growing demand for clean and reliable energy.With millions of people across sub-Saharan Africa still lacking access to electricity, Zafiri represents a significant effort to unlock new investment and scale proven renewable energy solutions.

By combining public, private, and philanthropic capital, the platform aims to accelerate electrification, support economic development, create employment opportunities, and contribute to a more inclusive and sustainable energy future for communities across the region.

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