Zafiri Launches $176m Blended Finance Platform for Africa’s Power Gap

A new $176 million blended finance platform, Zafiri, has been launched to accelerate electricity access across sub-Saharan Africa by providing long-term capital to companies developing distributed renewable energy solutions.

The launch was announced by climate investment firm Inspired Evolution during the Africa Energy Forum in Cape Town, South Africa. Inspired Evolution has been appointed as the investment manager for Zafiri, which is backed by a consortium of development finance institutions, philanthropic organisations and private-sector investors.

Founding shareholders include the International Finance Corporation (IFC), 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.

Zafiri has been established to support the goals of Mission 300, a joint initiative led by the World Bank Group and the African Development Bank Group that aims to connect 300 million people in sub-Saharan Africa to electricity by 2030.

The platform will provide patient equity capital to distributed renewable energy companies and projects, including mini-grids, solar home systems, productive-use energy solutions and clean cooking enterprises. At least half of the fund’s capital is expected to be directed toward mini-grid, solar home system and clean cooking investments.

According to the partners, Zafiri is designed to address one of the biggest challenges facing Africa’s energy access sector: the shortage of long-term equity financing required to help distributed energy businesses scale their operations.

Following its commercial launch at $176 million, Zafiri aims to reach a final close of $300 million within the next 12 months. Over the longer term, the platform intends to scale to $1 billion to support wider energy access across the continent.

IFC Vice President for Africa, Ethiopis Tafara, said the initiative demonstrates how partnerships can mobilise long-term capital to support private-sector energy access solutions.

He noted that by supporting distributed renewable energy companies, the platform could help expand access to clean electricity for up to 30 million people while creating jobs and stimulating economic activity across Africa.

The African Development Bank also described the launch as a timely intervention, noting that distributed renewable energy technologies such as mini-grids and stand-alone solar systems are expected to account for at least half of all new electricity connections in Africa by 2030.

Wayne Keast, Managing Partner at Inspired Evolution, said the platform would provide long-term blended finance to support energy inclusion and accelerate a just energy transition across the continent.

Other investors highlighted the importance of catalytic capital in reducing investment risks and attracting additional funding into underfinanced renewable energy sectors.

The launch comes as governments, development institutions and private investors increase efforts to close Africa’s electricity access gap, with distributed renewable energy solutions increasingly viewed as one of the fastest and most cost-effective ways to connect underserved communities to reliable power.