Charm Impact wants to accelerate the financing of renewable energy providers in Africa. The platform has just signed a partnership with the Signify Foundation which also wants to make impact investments in the electricity sector. Under the new partnership, “the Signify Foundation’s capital will be integrated alongside private investors, but in a subordinate position. In this way, the funds will encourage private investment in projects that are perceived to be riskier,” explains Charm Impact.
For the UK platform, the partnership will provide the capital to support the next phase of its lending roll-out in Africa. The electrification of the continent is now accelerating thanks to off-grid solution providers that rely on available renewable energy sources such as solar, wind or hydro. With nearly 600 million Africans still without access to electricity, green off-grid should help improve the situation, especially in rural areas.
Read also- AFRICA: universal electrification through off-grid solar mini-grids
“For energy access to really take off in the long term, we need to promote the growth of profitable, sustainable and local businesses. Charm is mission-driven and focused on creating large-scale impact. This means we need to challenge traditional donation models to ensure they promote commercially viable and scalable outcomes,” says Gavriel Landau, co-founder of Charm Impact.
The platform focuses on funding start-ups and providing clean electricity and cooking solutions, “with a particular emphasis” on supporting local entrepreneurs and taking a gender approach. The platform has already provided 10 loans to businesses, mainly in East and West Africa. Less than a year ago, Charm Impact raised £273,520 (almost $356,000) to finance start-ups in sub-Saharan Africa.
Jean Marie Takouleu