KawiSafi Ventures
Awarded to funders deploying capital to support impact projects. Pension funds, endowments, corporations, banks, governments, development finance institutions, high net-worth individuals and public funders are eligible for consideration. The award highlights funders with an innovative funding approach, either as a provider of catalytic capital or a third party investor deploying capital into an innovative structure.
Overview
KawiSafi Ventures Fund I focuses on scaling companies that deliver clean, affordable energy and climate solutions to low-income populations in Africa, particularly in East Africa. The fund invests in businesses whose products and services inherently generate positive social and environmental impact, such as mitigating CO2 emissions, improving resilience for lower-income communities and supporting climate change adaptation.
The problem
Africa is estimated to need $2.4tn in climate finance by 2030 to meet its climate goals – yet only 12% of that funding is currently secured. One of the most critical gaps lies at the early growth stage, where many promising green economy businesses struggle to access capital. While private investment often targets either early-stage start-ups or well-established companies, those in the “missing middle” are frequently overlooked. As a result, high-impact businesses are unable to scale, limiting their ability to deliver meaningful climate solutions.
Innovative solution
By mobilising private investment through its two funds – KawiSafi Fund I and II – the firm targets scalable, low-carbon technologies that
directly serve underserved communities across Africa. What sets KawiSafi apart is its focus on companies that are beyond the startup phase
but still require support to scale their impact. By investing in off-grid energy and other climate smart innovations, KawiSafi not only bridges
the financing gap but also reduces emissions, builds climate resilience and fosters inclusive economic growth across the continent.
Delivering impact
KawiSafi tracks and reports on key impact metrics, including the number of people reached and CO2 emissions averted at the portfolio level. Each portfolio company is guided by a tailored impact thesis, aiming to maximise outcomes such as increased renewable energy use, job creation, income growth and gender diversity. Since 2018, KawiSafi has exceeded its impact targets, averting 45m tonnes of CO2 and positively affecting over 213m people worldwide as of September 2024. In its core markets, the fund has offset 8% of annual emissions, reached nearly half of the population living in poverty and advanced universal energy access goals.
Scaling up
Its successor fund, KawiSafi II is raising $140m to support climate solutions across Africa. Using a blended finance model, the fund
brings together public and private capital to invest in 10 to 15 companies. Each investment will range from $1m to $5m and focus on
clean energy, productivity, transport and logistics and nature-based climate solutions. The goal is to reduce 50m tonnes of CO2, reach 50m people and strengthen climate resilience for 4m more. In addition to funding, KawiSafi II provides technical assistance to its portfolio companies through a $5m Technical Assistance Facility. Backed by the Green Climate Fund and other partners, the TAF supports activities like developing gender and ESG action plans, training women, funding research for female engineers and strengthening local incubators.
Fund II uses a new finance structure designed to encourage more commercial investment and grow impact in Africa’s clean energy sector. Supported by the Green Climate Fund, Fund II includes a Junior Equity layer with two key features: first-loss protection and a different preferred return. First-loss protection covers early losses, lowering risk for investors. The preferred return means senior investors get paid first at a higher rate, while junior investors receive a lower return after.
This structure balances risk and reward better for private investors, addressing common concerns about investing in emerging markets and climate projects. So far, Fund II has secured over $30m from family offices and wealthy individuals in the US and Europe. To keep attracting investors, the fund needs to maintain their confidence by providing clear performance information. Because the structure is complex, clear communication and strong governance are also important.
KawiSafi’s scaling strategy has evolved from initially supporting the off-grid energy sector in East Africa through targeted investments
across the value chain. As portfolio companies grew and expanded, KawiSafi adapted its approach to meet changing needs. With Fund
II, it has:
- Broadened geographic focus to invest across the whole of Africa, reflecting the continent’s evolving clean energy landscape.
- Improved impact measurement, especially for projects beyond solar home systems, with greater emphasis on climate adaptation and resilience.
- Increased fund size to nearly double Fund I, addressing the need to support companies in later growth stages. Fund II also uses
blended finance tools, including first-loss capital, to reduce risk and attract more institutional investors.
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