Africa-focused energy growth fund closes at $125m
The Energy Entrepreneurs Growth Fund (EEGF), a collaborative initiative by Shell Foundation and FMO, the Dutch entrepreneurial development bank, has completed its fundraising phase, raising an impressive $125 million. This substantial increase from its initial round, which closed at $45 million, marks a significant milestone in advancing clean energy access in underserved areas of Sub-Saharan Africa.
As of August 2023, EEGF has already provided financial support to 11 companies, with ambitious plans to invest in at least 25 enterprises operating in the access to the energy sector throughout the region during the fund's lifespan.
EEGF is jointly managed by Triple Jump, a Dutch impact investment manager overseeing the fund's portfolio, and Persistent, a prominent venture builder in the off-grid sector, providing valuable advisory assistance. Thanks to this partnership, EEGF has emerged as a pivotal catalyst for early and growth-stage companies operating within the access to energy ecosystem in Sub-Saharan Africa, contributing significantly to clean energy in Africa.
Key Takeaways
Sub-Saharan Africa faces a stark and persistent challenge: the lack of access to electricity. Over 600 million people in the region live without reliable access to electricity, which is approximately 57% of the population. This energy deficit hampers economic development, limits access to education and healthcare, and perpetuates a cycle of poverty. Clean energy solutions offer a ray of hope for addressing this gap. Funds like the Energy Entrepreneurs Growth Fund (EEGF), with their substantial investments in the clean energy sector, play a crucial role. EEGF's recent success is a testament to the growing interest and commitment to bridging the energy access divide in Sub-Saharan Africa. Investing in clean energy not only provides a sustainable source of power but also reduces greenhouse gas emissions, benefiting both the environment and public health. By supporting initiatives like EEGF, we can pave the way for a brighter future in Sub-Saharan Africa, where electricity becomes a widespread and transformative force, empowering communities and fostering economic growth.
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