Schneider Electric in partnership with, CDC Group, FISEA, PROPARCO, OFID, and FFEM, has launched the Energy Access Fund to improve access to sustainable energy in sub-Saharan Africa.
The new fund’s aim is tol transform lives and stimulate economic development across Africa by providing access to electricity for a million people by 2020.
The Professional Private Equity Fund which will be managed by Aster Capital and advised by Energy Access Venture (EAV) company based in Africa, has secured commitments of EUR54.5 million to invest in five-year instruments for around 20 African SME.
Some 625 million people living in sub-Saharan Africa lack access to electricity. Lack of electricity holds back social progress, economic growth and environmental improvements. The Energy Access Ventures Fund will to provide long-term funding to support access to energy for the poorest populations by strengthening local energy infrastructure.
The Fund will target smaller businesses in Africa that specialise in promoting low-carbon and low cost electricity access solutions in rural areas and close to main towns and that cannot access regular finance. It will focus in a first instance on Burundi, Ethiopia, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia and Zimbabwe.
In addition to funding, a range of technical support will be provided to offer practical help and advice for local businesses concerning management, governance, energy efficiency, and environmental best practices.
