LeapFrog Investments, a renowned Profit with Purpose firm, has successfully raised $500 million to fuel its ambitious climate investing strategy in Africa and emerging Asia. The substantial investment comes from Temasek and has garnered support from the European Investment Bank, pending approval from its governing bodies.
In 2021, Temasek committed $500 million to LeapFrog to anchor its future investing activities, including a $100 million commitment to the newly unveiled climate investing strategy. The European Investment Bank, a long-term partner of LeapFrog in emerging market impact investing, is considering its fifth investment with the firm, subject to ongoing appraisal.
A recent report, the Investor Roadmap for Inclusive Green Growth, jointly released by LeapFrog, Temasek, and the World Bank’s CGAP think tank, underscores the urgency of addressing climate change in South Asia, Southeast Asia, and Africa. These regions currently contribute 25% of global climate emissions, a figure projected to surge to 73% by 2050 without prompt action.
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LeapFrog’s climate strategy focuses on channeling investments into companies providing green tools and technologies targeting rising consumers. This includes sectors such as 2-wheeler electric vehicles, rooftop solar providers, and smart farming businesses in the energy, mobility, built environment, and agricultural sectors. The aim is to support low-carbon and resilient growth as incomes rise, with a specific focus on countries like India, Indonesia, and Kenya.
Dr. Andy Kuper, Founder and CEO of LeapFrog Investments, emphasized the global nature of the climate challenge, stating, “Climate has no borders, and so neither should global capital markets.” He commended the early support from Temasek and EIB, highlighting the understanding of long-term and progressive investors in tackling climate change holistically.
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Benoit Valentin, Head of Impact Investing at Temasek, expressed optimism about the potential for emerging markets to leapfrog traditional technologies with access to clean technology. He stressed the need for urgent action to tap into the green discount and seize investible opportunities for a greener and more inclusive future.
Markus Berndt, Acting Managing Director of EIB Global, expressed excitement about the strategy’s objectives to invest in concrete solutions for private sector development and a green transition in transport, energy, and the environment in Asia and Africa.
LeapFrog’s climate team has already built a robust pipeline of green businesses in Africa and emerging Asia, with plans to announce initial investments in 2024. The firm’s previous funds have supported successful climate companies, such as Sun King, the largest pay-as-you-go solar financier in Africa.
The recent backing from Temasek and EIB follows LeapFrog’s $500 million climate commitment, announced four months ago at the US-UK Climate Mobilisation Forum. This forum, attended by key global figures including LeapFrog’s Dr. Kuper, aimed to tackle climate change in developing economies and accelerate a net-zero, resilient transition.
LeapFrog Investments, known for its profit with purpose approach in financial services and healthcare, has raised four growth equity funds and two separate accounts, spanning dozens of investments in 30 countries to date. With a portfolio that has generated 24% annual revenue growth on average, LeapFrog companies currently reach 492 million people across the globe, delivering healthcare, financial tools, or climate solutions to over 6% of the world’s population.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard