Energy Access Relief Fund (EARF), a newly formed fund, has attracted $68 million in capital. The Social Investment Managers and Advisors (SIMA)-managed vehicle will provide finance to almost 90 energy-related businesses in Sub-Saharan Africa and Asia in the form of short-term loans.
The creation of the EARF was sparked by a coalition of development investors and financial institutions. These mostly African-based investors hope to raise $ 80 million in total to ensure that at least 20 million people in Sub-Saharan Africa and Asia have access to energy.
“The EARF’s Flexible and Innovative Financial Structure brings together different types of capital to provide low-interest loans and […] liquidity […] institutions like the CDC Group, the CFB, the FMO, and many others mobilize capital to ensure the survival of small and medium-sized businesses and expand energy access to 800 million people without electricity,” Geoff Manley explained.
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Due of the economic and health circumstances caused by the COVID-19 epidemic, the Fund will assist enterprises providing energy solutions that are having difficulty obtaining funding. According to a SIMA analysis of energy companies eligible for short-term financing in 50 countries, 77% of potential borrowers require immediate financial help in order to stay afloat and avoid taking severe measures, such as shutting down their operations.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer