Hunton Andrews Kurth LLP advised a consortium of founding investors on the USD 176 million commercial launch of Zafiri, a blended permanent-capital vehicle focused on expanding access to electricity for tens of millions of people across Sub-Saharan Africa.
Inspired Evolution, a leading African climate investment firm, was mandated by the investors to be the investment manager of Zafiri. Founding shareholders include IFC, a member of the World Bank Group; the African Development Bank Group (AfDB), including its Sustainable Energy Fund for Africa (SEFA); The Rockefeller Foundation; Trade and Development Bank Group (TDB Group); Nordic Development Fund (NDF); the John D. and Catherine T. MacArthur Foundation; and FirstRand Limited.
Hunton represented all of the initial investors in connection with the establishment and launch of Zafiri, other than the John D. and Catherine T. MacArthur Foundation.
This launch underscores Zafiri’s role in investing in and supporting the private sector as part of Mission 300, a joint initiative co-led by the World Bank Group and the African Development Bank Group, with support from The Rockefeller Foundation, the Global Energy Alliance for People and Planet, and Sustainable Energy for All, to expand electricity access to 300 million people in Sub-Saharan Africa by 2030. Zafiri will spur job creation, help connect more businesses to power and put electricity to productive use that drives local economic activity.
Zafiri will deploy patient equity into distributed renewable energy (DRE) companies and projects across Sub-Saharan Africa, including mini-grids, solar home systems, productive-use energy solutions and clean cooking enterprises. At least 50% of the platform’s capital is expected to support mini-grids, solar home systems and clean cooking.
Zafiri addresses one of Africa’s toughest energy financing gaps by channelling long-term equity into DRE companies bringing reliable, affordable power to communities beyond the reach of traditional grids. By leveraging concessional junior equity provided by the AfDB’s SEFA, a multi-donor Special Fund established to de-risk private sector participation, the vehicle is designed to mobilise additional commercial capital into scalable off-grid and decentralised energy solutions. The African Development Bank’s USD 40 million commitment to Zafiri, including USD 10 million in junior equity from SEFA, advances the vehicle’s blended-finance structure and helps crowd in private capital at scale.
Following its commercial launch at USD 176 million, Zafiri expects to reach a final close of USD 300 million within 12 months, with a longer-term ambition to scale up to USD 1 billion to accelerate energy access in Africa. Zafiri is a blended finance vehicle that aims to invest in high-impact projects while maintaining financial sustainability.
The Hunton team was led by partners James Comyn and Amee Narayan and included attorneys Olamide Falomo and Feyi Olufon.
About Inspired Evolution
Inspired Evolution is a leading African climate investment firm focused on clean energy infrastructure, energy access and resource efficiency. Founded in 2007 and headquartered in Cape Town with offices in Nairobi, Abidjan, London and Mauritius, Inspired Evolution manages the Evolution funds and manages over USD 1.15 billion including co-investments for clean energy investments, with capital deployed across 21 African countries.
About International Finance Corporation (IFC)
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise and influence to create markets and opportunities in developing countries.
About the African Development Bank
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). The Bank contributes to the economic development and social progress of its 54 regional member states.
About the Sustainable Energy Fund for Africa (SEFA)
Managed by the African Development Bank Group (AfDB), the Sustainable Energy Fund for Africa (SEFA) is a multi-donor facility dedicated to unlocking private investment in renewable energy and energy efficiency. SEFA provides catalytic finance to accelerate universal access to clean, affordable, and reliable energy across the African continent.
About The Rockefeller Foundation
The Rockefeller Foundation is a global philanthropy focused on promoting the well-being of humanity through partnerships and innovative solutions across energy, food, health and finance.
About Trade and Development Bank Group
Established in 1985, the Trade and Development Bank Group (TDB Group) is an African regional multilateral development bank group of specialised entities working to finance and foster trade, regional economic integration and sustainable development in Africa.
About Nordic Development Fund
Nordic Development Fund (NDF) is the joint Nordic international finance institution of Denmark, Finland, Iceland, Norway and Sweden, focused on the nexus between climate change and development in lower-income countries and countries in fragile situations.
About FirstRand Limited
FirstRand’s portfolio of integrated financial services businesses comprises FNB, WesBank, RMB, Aldermore and Ashburton. The group operates in South Africa, certain markets in sub-Saharan Africa and the United Kingdom.
