Shell-founded startup fund receives $13 million from Canadian DFI to accelerate clean energy access in Africa

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FinDev Canada Invests $13 Million in Energy Entrepreneur Growth Fund (EEGF), which invests in early and growth-stage energy startups in sub-Saharan Africa. Part of the funding will go towards increasing access to clean energy for off-grid homes and businesses in the region.

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The $120 million EEGF, which was co-founded in 2019 by the Shell Foundation – and co-funded by UKaid and Dutch Entrepreneurial Development Bank FMO, provides financing in the form of debt (catalyst or mezzanine) or equity for businesses in energy. Is. Area. EEGF is managed by Triple Jump; Mentored by an Impact Investment Manager and Persistent; A climate venture manufacturer.

FinDev Canada participated in the fundraising through 2X Canada, an impact investment facility that drives economic empowerment of low-income and underserved populations in sub-Saharan Africa, Latin America and the Caribbean.


Paulo Martelli, Vice President and Chief Investment Officer, FinDev Canada, in Statement said the funding will help accelerate innovation in the clean energy industry in the aftermath of the Covid-19 recession.

“The pandemic has slowed electrification in Africa, which was already behind the health crisis. By increasing EEGF’s ability to invest in this sector, FinDev Canada and its 2X Canada facility support energy companies committed to increasing access to clean and reliable energy for African households and businesses, leading to inclusive and sustainable development and millions of lives. life improves. They said.

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The fund invests in at least half of companies that explicitly address the energy needs of women consumers and entrepreneurs in Africa, and that provide renewable energy solutions for businesses and homes. it is estimated that 75% of the world’s population lives in sub-Saharan Africa Without access to electricity and renewable energy solutions can be taken to bridge that gap.

Gareth Zahir, Director of Operations at the Shell Foundation, said, “An equitable and inclusive energy transition, one that alleviates energy poverty and mitigates climate change, requires an understanding of the financial needs of entrepreneurs, who rely on the energy resources of the world. are dependent on meeting the reach goals.” – Bill.

“FinDev Canada’s investment in the fund will help it expand its provision of flexible financing solutions for entrepreneurs, accelerating access to clean and reliable energy for millions of people in Africa.”

Last year EEGF invested in Baobab+ and Yellow, both of which offer pay-to-own solar energy solutions, and Redavia, which designs and installs mobile solar farms for businesses.

Redavia, which has clients in Ghana, Kenya and Tanzania, received a $3.7 million mezzanine investment from the fund. The startup aims to install over 85 MWp of solar power across the continent. Till September last year, it had “installed around 90 solar units for 7 MWp solar capacity”.

Yellow, which has operations in Malawi and Uganda and allows homes and small businesses to pay for solar systems through installments, received $4 million, while Baobab+ received $2.3 million. Baobab+ has operations in Mali, Senegal, Madagascar, Cte d’Ivoire, and plans to enter the markets of Nigeria and the Democratic Republic of the Congo.

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