The U.S. Corporation for International Development Finance (DFC) is again investing in renewable energy in Africa. The U.S. financial institution announces a $40 million investment in the Energy Entrepreneur Growth Fund (EEGF). This facility launched in 2019 supports the growth of renewable energy entrepreneurs in Africa through financing and technical capacity building.
According to DFC, its investment will allow the EEGF to continue acquiring assets by investing in about 10 companies in Africa south of the Sahara by the end of 2022. Additional investments are needed to improve access to electricity in Africa. Currently, 570 million Africans do not have access to electricity, according to the International Energy Agency (IEA).
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“DFC’s investment in EEGF will support companies that provide energy access to those currently without basic services across sub-Saharan Africa. By providing additional capital for this transformative work, EEGF will help communities in the region and spur economic growth and development,” said Scott Nathan, CEO of DFC. The 12-year EEGF is an initiative of the Shell Foundation and the Netherlands Development Finance Company (FMO). The fund is co-managed by the Dutch company Triple Jump and Persistent, a venture capital firm based in Nairobi, Kenya.
In January 2022, the investment firm FinDev Canada committed $13 million to the EEGF. In all, the facility has already raised $106 million to support clean energy providers in Africa. The fund has invested in several companies, including French solar home systems provider Baobab+, Yellow, which operates in East Africa, and Redavia, the German company that provides solar energy to commercial and industrial (C&I) companies in East and West Africa.
Jean Marie Takouleu