On the sidelines of the recently concluded Energy Access Investment Forum (EAIF) in Abidjan, Ivory Coast, several investors and companies have joined forces to launch Gaia Energy Impact Fund II. This fund will invest in energy transition and electrification in Africa.
A new mechanism is being created to finance access to electricity in Africa. It is Gaia Energy Impact Fund II (GEIF II) recently launched by the French company Schneider Electric, as well as investors Gaia Impact, Capital Croissance, Capelan and Investisseurs & Partenaires. The fund is targeting a capitalization of €80 million by 2024.
The first financial closing of the fund will take place before the end of 2023. As part of the implementation of this new financing mechanism, Schneider Electric and Capelan will contribute €15 million each. GEIF II will also be funded by families and managers of large assets, companies and institutional investors “willing to reconcile economic return, social impact and environmental impact,” says Gaia.
Creating 20,000 jobs
GEIF II is invested in equity and quasi-equity with tickets ranging from 500,000 to 5 million euros. These investments will be made in some 20 companies in the seed or growth phase (Series A and Series B) that are active in access to electricity, productive use of energy, electric mobility, new energies, etc.
According to Gaia Impact, which will be the “Exclusive Advisor” of GEIF II, this financing mechanism should bring energy to 4 million people while creating 20,000 jobs. According to Gaia Impact, these investments will avoid the emission of 4 million tons of CO2 equivalent.
“We are convinced that this new coalition of expert, complementary actors aligned on the same vision will enable the Gaia team to strengthen its social and environmental impact, by promoting the conditions for economic development,” says Hélène Demaegdt, Gaia Impact’s founding president. GEIF II follows Gaia Impact Fund I, which was launched in 2017 by Gaia Impact and financed by large fortune manager Capelan. This first fund financed energy access in Africa and elsewhere in the world.
Jean Marie Takouleu