Zafiri, a pioneering decentralised renewable energy fund, has selected Inspired Evolution as investment manager for its $300 million launch, a move set to catalyse energy access and sustainable livelihoods for millions across Africa.
Backed by global heavyweights like the African Development Bank (AfDB), International Finance Corporation (IFC), The Rockefeller Foundation, Trade and Development Bank Group (TDB Group), and the Nordic Development Fund (NDF), Zafiri aims to bring electricity and clean cooking access to more than 30 million people by 2030.
The mission sounds ambitious. But with Inspired Evolution steering the wheel, the odds might just be in its favour.
The Stark Reality of Africa’s Energy Gap
Sub-Saharan Africa remains the global epicentre of energy poverty. Roughly 570 million people still live without electricity, according to the World Bank, nearly half the region’s population.
For clean cooking, the gap is even wider, with families relying on biomass and kerosene, costing an estimated $29 billion a year in lost productivity and health impacts.
To counter this, the World Bank Group and AfDB have launched Mission 300, a pledge to connect 300 million Africans to reliable power by 2030.
Within that framework, Zafiri is designed to fill a critical missing link: funding the “missing middle” of off-grid energy innovator companies too big for microfinance but too small for traditional institutional capital.
What Makes Zafiri Different
Launched in early 2025, Zafiri isn’t a typical climate fund. It’s structured as a permanent capital vehicle, meaning it can hold investments indefinitely rather than chase short-term exits.
That structure provides patient equity to mini-grid developers, off-grid solar providers, clean cooking startups, and battery storage firms all sectors often suffocated by high-cost debt.
The fund’s first close stands at $300 million, with ambitions to mobilise $1 billion over time. Early commitments include:
- IFC: Up to $120 million (senior equity)
- AfDB & SEFA: $40 million combined ($30M senior, $10M junior)
- The Rockefeller Foundation: $10 million plus catalytic grant funding
- TDB Group & NDF: Junior equity for risk cushioning
By layering concessional capital beneath commercial capital, Zafiri de-risks the pool for private investors wary of frontier markets. Headquartered in Mauritius, operations are expected to begin in early 2026.
For small Decentralised Renewable Energy (DRE), this model could be transformative. A mini-grid developer in Kenya, for instance, could scale from powering 500 to 5,000 homes without the burden of expensive loans.
Over time, Zafiri’s projects aim to connect 30 million people, accounting for roughly 10% of Mission 300’s total target while cutting carbon emissions equivalent to taking millions of cars off the road.
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Why Inspired Evolution?
Founded in 2007, the Cape Town-based investment firm has financed more than 10 GW of renewable projects, backed 29 companies across 18 countries, and currently manages $850 million in assets.
Their resume includes investments like Cold Solutions East Africa, a $20 million play in climate-resilient logistics. Co-founder Wayne Keast sums it up:
“We’re ready to grow high-impact businesses for sustainable development.”
The firm’s advantage lies in blending public and private capital efficiently, understanding local market realities, and scaling energy access projects that survive beyond the pilot phase.
Voices from the The Front
Fund partners are bullish about what Zafiri represents.
- Ethiopis Tafara (IFC): “This is a pivotal step to scale clean energy access.”
- Kevin Kariuki (AfDB): “Zafiri drives commercial maturity for distributed renewables.”
- Admassu Tadesse (TDB Group): “It complements debt tools, catalysing sustainable growth.”
- Satu Santala (NDF): “Speed is critical for hitting Mission 300 milestones.”
- Ghita Benabderrazik (Rockefeller Foundation): “We’re proud to support Inspired Evolution in accelerating access.”
Challenges on the Horizon
Ambition alone won’t close the gap. Africa’s energy markets remain uncertain with currency swings, regulatory red tape, and political uncertainty. Returns for off-grid projects typically range between 10 and 15%, far below what mainstream investors demand.
Zafiri’s permanent capital structure helps soften those pressures, allowing longer holds and patient growth. Inspired Evolution’s track record of averaging 2x returns on past exits offers credibility.
And with Mission 300’s $10 million in technical assistance from Rockefeller and GEAPP, the groundwork for smoother implementation is being laid.
If all goes to plan, early projects in 2026 could connect 5–10 million people in the first year, setting the tone for full-scale deployment.
About Zafiri and Inspired Evolution
Zafiri is a blended finance initiative developed in collaboration with the IFC and World Bank, designed to accelerate clean energy investment across Africa through flexible equity financing.
Inspired Evolution, based in Cape Town with a regional office in Nairobi, specialises in renewable energy and sustainable infrastructure investments.
The firm manages multiple funds under the Evolution platform and actively recruits professionals passionate about climate finance via its Inspired Evolution careers portal and LinkedIn updates.
Together, they represent the frontier of Africa’s sustainable energy transformation.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
