Share the full article
Clean cooking in the Congo, solar in Somalia. There’s “more impact money, a bit more private capital, and a bit more local money,” moving in Africa’s most underinvested markets, as fund manager Barthout van Slingelandt of XSML Capital puts is (see, “Investors warm to small business investments in Africa’s most underserved markets”). Take a look at a pair of investments this week:
Clean cooking
Congolese commercial bank Rawbank and Switzerland-based energy company Vitol Energy are partnering to invest $2 million in clean cooking projects in the Democratic Republic of Congo. Rawbank’s new climate finance group aims to link international investors to climate-related projects in the country.
The bank’s Thibaut Deckers called the deal “a real proof of concept” that demonstrates Rawbank’s “ability to master the risks specific to projects in the DRC.” Poor governance, conflict and an ongoing humanitarian crisis, and deficiencies in digital connectivity and general infrastructure are some of the challenges investors face in the country.
The funding aims to save 6.6 million tons of carbon emissions over 10 years by curbing the use of charcoal and firewood for household cooking and heating. Rawbank and Vitol last year pledged to invest $20 million for forest protection and renewable energy projects in the DRC.
Energy poverty
The International Finance Corp. invested $25 million in Acumen’s Hardest to Reach fund, which provides patient and impact-linked debt to solar companies in Somalia, Malawi, the DRC, Benin, Zambia, Burundi and 10 other African countries with very low electrification rates.
The planned $250 million fund was launched at COP28 in Dubai last year with a $65 million investment from the Green Climate Fund. Its portfolio includes Yellow, a solar home system distributor in Malawi, and Zambian off-grid solar provider RDG Collective.
