ImpactAlpha, January 19 – Lion’s Head’s Facility for Energy Inclusion launched in 2017 to finance off-grid renewable power producers in Africa with projects of 25-megawatts or smaller. The facility has raised nearly $400 million in mixed financing, including $145 million in equity. It has committed $100 million in debt, bridge loan and mezzanine investments to projects in nine countries.
A new $24 million commitment brought Germany’s KfW equity investment in the fund to $52 million. Other backers include Norway’s Norfund, the African Development Bank, and the European Commission.
Africa’s energy development has been largely driven by fossil fuels. Recent research found that new financial and policy incentives will be necessary to scale renewables development on the continent.