FinDev Canada Supports The Energy Entrepreneurs Growth Fund With $13 million to Boost Access to Clean Energy in Africa
The Energy Entrepreneurs Growth Fund will receive up to US$ 13 million in funding from FinDev Canada and its 2X Canada facility, according to an announcement made by FinDev Canada and its 2X Canada facility (EEGF).
The Electricity Entrepreneurs Growth Fund provides catalytic capital and technical assistance to early and growth-stage entrepreneurs in Sub-Saharan Africa to enhance access to clean, safe, dependable, and affordable energy for off-grid homes and enterprises.
The EEGF was founded in 2019 by the Shell Foundation and FMO, the Dutch Entrepreneurial Development Bank, with funding from the UK government.
The use of blended finance will allow the EEGF to acquire additional funding, which was a key difficulty during the COVID-19 crisis, as well as to expand its positive influence on improving energy access and boosting women’s economic empowerment.
This is FinDev Canada’s first transaction under the recently founded 2X Canada: Inclusive Economic Recovery facility, which is led by FinDev Canada and funded by Global Affairs Canada. At least half of the energy firms that receive EEGF funding will meet the 2X Challenge. Through its investments, the Fund will address the special energy needs of African women consumers and business owners. The Fund also promises to encourage inclusive practices among its portfolio companies, which will have a positive influence on the economic empowerment of women in the region.
“The epidemic has hampered electricity in Africa, which was already lagging before the health crisis,” said Paulo Martelli, Vice President and Chief Investment Officer of FinDev Canada. By increasing EEGF’s capacity to invest in this sector, FinDev Canada and its 2X Canada facility support energy companies committed to expanding access to clean and reliable energy for African households and businesses, resulting in inclusive and sustainable growth and the improvement of millions of lives.
The EEGF assists energy entrepreneurs in scaling and eventually becoming more acceptable to traditional finance and stock markets by providing flexible and patient financing solutions — catalytic debt, mezzanine debt, equity, and technical help — tailored to their needs.
