Shell Foundation sponsored Energy Entrepreneur Growth Fund (EEGF) has received $13 million from Canadian investor, FinDev for early-stage electricity access providers operating in sub-Saharan Africa.
The EEGF was created in 2019 by Shell Foundation, co-funded with UK aid from the UK government, and the Dutch Entrepreneurial Development Bank FMO, to provide financing to early and growth-stage companies operating in the access to energy ecosystem in Sub-Saharan Africa.
Report says FinDev is investing in this program through its 2X Canada: Inclusive Economic Recovery program, a recent mechanism established with funding from Global Affairs Canada. The program is designed to support the recovery of economies affected by the Covid-19 health crisis.
“The EEGF is committed to promoting inclusive practices within its portfolio companies, which will have a positive impact on the economic empowerment of women in the region,” says the Canadian financial institution in a statement.
The investment is expected to catalyze the deployment of renewable energy in Africa and thus enable electrification, according to FinDev Canada.
African Development Bank (AfDB) and the International Renewable Energy Agency (IRENA), through the Renewable Energy Market Analysis report published recently, said over 570 million Africans do not have access to electricity.
Among the barriers to electricity access identified by the AfDB and IRENA is the lack of financing that blocks the implementation of projects. Mechanisms such as the EEGF are providing a start in addressing this issue. The fund has already invested in several early-stage companies committed to the electrification of Africa.
These include solar system providers Baobab+ in Ivory Coast, Yellow in Malawi, and productive solar energy provider Redavia in West and East Africa.
In addition to FinDev Canada, the fund managed by Triple Jump and the consulting firm Persistent is also funded by the British government and the Netherlands Development Finance Corporation (FMO).
By Chibisi Ohakah, Abuja
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