After many years of progress, Africa still continues to face a number of issues, including persistent development challenges. It is for this reason that a powerful coalition of global financial institutions has announced the creation of Zafiri.
This new investment vehicle is designed to channel crucial funding into small-scale, decentralized renewable energy projects across sub-Saharan Africa. The African Development Bank Group, the International Finance Corporation, and partner organizations have appointed the Africa-based firm Inspired Evolution as the investment manager for this ambitious initiative.
Zafiri is the central pillar of “Mission 300,” the landmark joint initiative by the World Bank Group and the African Development Bank aiming to provide first-time electricity access to 300 million people in the region by 2030.
Its core mission is to address a critical financing gap that has long hindered energy access for millions. While distributed renewable energy companies are essential for reaching communities beyond the traditional grid, they often struggle to attract investment from mainstream capital markets, creating a middle in energy finance.
Zafiri is structured to provide the long-term, patient equity these companies need to scale their operations. The initiative will focus on this underserved segment in order to expand access not only to electricity but also to clean cooking solutions, thereby tackling two fundamental aspects of energy poverty simultaneously.
Inspired Evolution brings a formidable track record as manager. The Cape Town-based firm with a 17-year history and over Sh109.50 billion ($850 million) in managed assets, has been at the forefront of financing clean energy in Africa for nearly two decades.
According to Ethiopis Tafara, IFC Vice President for Africa, one of the key challenges slowing Africa’s energy transition is the lack of equity financing for distributed energy companies.
“Zafiri addresses this ‘missing middle’ by offering long-term equity to these providers, helping scale innovative business models. IFC is proud to support this initiative, which is expected to reach 30 million people and spur job creation across the continent. Through our commitment to the M300 platform, we are deepening our support for impactful solutions like Zafiri. Inspired Evolution brings strong local investment expertise and a proven track record, making it a valuable partner for M300 in delivering development impact through the private sector,” Ethiopis Tafara said.
The new vehicle will leverage concessional junior equity, often provided by development financiers as higher-risk, patient capital, to de-risk the investment for private sector participants and mobilize substantial commercial funding.
Backed by an initial capitalization target of Sh38.75 billion ($300 million) by 2026, the partners have a clear vision for Zafiri to scale up to Sh129.15 billion ($1 billion), dramatically accelerating the pace of energy access expansion.
According to Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth, this partnership is set to take the industry to the next level.
“By combining AfDB’s capital—including our Sustainable Energy Fund for Africa (SEFA)—with IFC and partners, Zafiri will inject the much needed risk capital to take the DRE sector to the next level in terms of commercial maturity, larger operational footprint, and ultimately impact on the many communities beyond the grid,” said Kevin Kariuki.
This collaborative effort is fueled by the commitment of its founding partners, including The Rockefeller Foundation, the Trade and Development Bank Group, and the Nordic Development Fund, each bringing a unique form of support and a shared conviction in the mission.
