Cleantech - Afrikan Heroes

Energy Access Ventures Launches New Climate Fund For African Cleantech Startups

January 12, 2022

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Energy Access Ventures (EAV) and Lion’s Head Global Partners have teamed together on a second venture capital fund focused on Africa, cleantech, resource-efficient next-generation firms, and associated B2B and B2C businesses.

The “E3 Low Carbon Economy Fund I,” as it is known, is the successor of the EAV fund, which has a track record of investing in early-stage renewable energy enterprises and energy efficiency in Africa. The EAV fund, which was formed in 2015 and recently closed, raised 75 million euros. It invested in Ziz Energie, a Chadian supplier of solar mini-grids, in July 2020. Following that, EAV invested in SolarX, a firm situated in Bamako (Mali) that specializes in solar energy supply to enterprises.

E3, which stands for Enabling Emerging Entrepreneurs and is billed as a venture capital fund, would invest in next-generation climate-smart enterprises in Africa that are transitioning to a green economy.

The fund will provide initial financing to promising companies that propose carbon-neutral solutions, and it will rely on its partners’ African investing experience.

Energy Access Ventures is an African early-stage investment firm. Its first fund (EAV I) was launched in February 2015 and has a total of €75 million in assets under management, with 14 portfolio firms and one exit.

Lion’s Head is a frontier and emerging markets investment bank with two primary lines of business: asset management and investment banking. In Africa, the Middle East, and Asia, the organization manages roughly $600 million in assets in four African credit funds with a focus on renewable energy, decarbonization, and capital markets.

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French Investors Back Ivory Coast Ecommerce Startup ANKA In $6.2m Pre-Series A Round

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

Nigerian Cleantech Startups May Apply For The 2021 Edition Of $2m Off-Grid Energy Challenge.

January 18, 2021

The U.S. African Development Foundation (USADF) and All On has announced the official opening of the 2021 Nigeria Off-Grid Energy Challenge, which will provide up to $100,000 in blended finance per enterprise for successful applicants. The Rockefeller Foundation is also providing support via the All On Hub for the program whose application window opens on January 15 and closes on February 28, 2021.

“We are proud to be partnering again with All On for the fourth edition of an initiative that is fostering the growth of local enterprises committed to bringing power and connectivity to underserved Nigerians,” said C.D. Glin, President & CEO, USADF. “This partnership pioneered a blended finance model that combines grant capital and private sector investment funding that increases access to power and ultimately impacts lives.”

“We are particularly pleased that in spite of a remarkably difficult year in which tough business decisions are being made, the Challenge has been expanded for an additional two years till 2022,” said Wiebe Boer, CEO, All On. “We look forward to more innovative solutions from entrepreneurs in the Nigerian off grid sector.”

Here Is What You Need To Know

The annual Challenge is a multi-year partnership that identifies and helps scale innovative off-grid solutions to “power up” unserved and underserved areas in Nigeria. It was established by USADF, a founding member of the United States Power Africa initiative and an independent U.S. Government agency established by Congress to support and invest in African-owned and led enterprises and All On, a Nigerian impact investing company seeded by Shell, that invests in off-grid energy solution providers in Nigeria.
Entering the fourth year of the recently expanded five-year partnership, the parties will jointly provide funding to 100% African-owned and operated small and medium enterprises that improve energy access through off-grid energy solutions spanning solar, wind, hydro, biomass, and gas technologies.
The Challenge has awarded funds to 24 companies to date, totaling $2.4 million in blended finance. This year’s $2,000,000 Challenge will provide up to $100,000 per award for up to 20 enterprises.
The enterprises may be developers of their own technology and/or acquiring and implementing technologies developed elsewhere. All applicants must be legally registered in Nigeria, demonstrate the capacity to track and manage project resources, and operate in good standing with the local governments in their areas of operation.
Up to $50,000 will be provided in the form of convertible debt from All On along with up to $50,000 in grant capital from USADF for each selected company.
Participants will be selected based on their demonstrated abilities to increase sustainable energy access, specifically off-grid solutions, and extend the delivery of electrification to unserved and under-served communities throughout Nigeria.

Nigeria Off-Grid Energy Challenge

What Are Required Of Startups?

Registered Business: Must be registered with the Corporate Affairs Commission
Market Potential: Business concept that has existing instances of deployment and/or has been deployed successfully in multiple areas; as well as an identified customer base
Climate/Social Impact: Differentiated solution providing greater access and productive uses as well as notable climate impact benefit
Innovation or Technology Potential: Product type is innovative and differentiated from existing products
Qualified Management Team: Experienced team with complimentary or supplementary skill sets and/or experience to successfully develop concept; gender diversity encouraged

“These unprecedented times of crisis have shown us how critical innovation is to solving global challenges. The Rockefeller Foundation is proud to continue its support to All in identifying and nurturing innovative entrepreneurs and businesses that are addressing Africa’s energy poverty by scaling Nigeria’s off grid sector,” said Joseph Nganga, the Executive Director of The Rockefeller Foundation’s Power & Climate initiative in Africa.

USAID’s Power Africa Country Lead David Rogers added:

“We’re extremely excited to partner with the Challenge. Through the Nigeria Power Sector Program, we are supporting finalists with financial modeling to advance our shared goal of bringing clean and reliable electricity to Nigerian households and businesses.”

How To Apply

To access the application form, visit: www.all-on.com/the-all-on-hub or www.usadf.gov/apply

All general inquiries and applications should be sent to: OffGridChallengeNigeria2021@usadf.gov

Application closes on February 28 , 2021.

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

A New $160m Energy Inclusion Fund Launched for Solar Energy Startups In Africa

March 18, 2020

Wale Shonibare,Vice-President of power, energy, climate & green growth at African Development Bank

Cleantech startups in Africa have a new Energy Inclusion fund in place to pitch to. The African Development Bank (AfDB), the European Commission, KfW, the Clean Technology Fund, Norfund, and other investors have committed nearly $160 million to the first close of the Facility for Energy Inclusion (FEI). Facility for Energy Inclusion Fund is a targeted $400 million fund to improve energy access across Africa through small-scale renewable energy and mini-grid projects.

“After three years of hard work, we are pleased to see the second and larger piece of our energy access debt funding platform — FEI — up and running on the back of very significant commitments from our partners. We look forward to seeing FEI catalyse financing for new energy sector business models and accelerate our efforts to electrify Africa,” said Wale Shonibare,Vice-President of power, energy, climate & green growth at African Development Bank.

Here Is All You Need To Know

The project led by the AfDB, Facility for Energy Inclusion Fund serves as a financing platform to catalyze financial support for innovative energy access solutions and startups in Africa.
The bank, as the Facility’s anchor sponsor, has put up $90 million in financing.
That sum includes $20 million that the Bank is providing in its capacity as the implementing agency of the Clean Technology Fund.
In addition to the Bank’s commitment, the European Commission committed €25 million to the Fund, the Norwegian Investment Fund (Nofund) committed $23 million, and German Development Bank KfW committed €25 million.
Facility for Energy Inclusion Fund will also include a $10 million Project Preparation Facility from the Global Environment Facility that will provide reimbursable grants for transaction advisory to facilitate financial close.

Read also: Solar Startups and Businesses In Burkina Faso To Get Up To $200k From UN-backed Fund

Why The Investors Invested

“Norfund is pleased to participate in this new facility which makes debt financing available to smaller-scale renewable power projects in Africa. We anticipate that the facility will be successful in attracting private capital to this segment of the market”, said Mark Davis, Executive Vice President, Clean Energy at Norfund.

“With our investment in this flagship fund, KfW on behalf of the German Government emphasises its commitment to work with other development finance institutions to improve access to clean energy in Africa. Our junior equity investment aims at mobilising public equity and private debt investors to scale up the financial means available for innovative renewable energy projects like new mini-grids to electrify Africa” said Babette Stein von Kamienski, Head of Division Infrastructure, Southern Africa at KfW.

Cleantech Startups And Businesses The Fund Would Be Targeting

The debt financing Energy Inclusion Fund will support small-scale Independent Power Producers and startups delivering power to the grid, mini-grids and captive power projects across Africa.
Projects in sub-Saharan African countries where electricity access rates are comparatively lower receive priority.
Other eligibility criteria include the requirement to use renewable energy technology, to have capital expenditure of less than $30 million and generation capacity below 25MW.
Initial pipeline projects have been identified in Burundi, Cape Verde, Madagascar, Malawi and Mozambique.

Who Manages The Fund

The Facility for Energy Inclusion Fund is managed by LHGP Asset Management, part of Lion’s Head Group, a fund manager focused on bringing innovative financial solutions to emerging markets and selected through an internationally competitive process.

“As Fund Manager, we are excited that the limited partners have given us a flexible mandate to provide tailored financing solutions to this exciting industry which has the potential to make green growth a reality in Africa. By focusing on smaller renewable energy producers, FEI will contribute to the electrification of Africa, in particular in more remote and traditionally neglected parts of the continent,” said Clemens Calice, Co-CEO of LHGP Asset Management, the Fund Manager of FEI.

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.
He could be contacted at udohrapulu@gmail.com