IFC, AfDB Launch $1bn Zafiri Investment Platform to Power Africa’s Off-Grid Energy Transformation
In a bold move to close Africa’s off-grid energy financing gap, the International Finance Corporation (IFC), the African Development Bank Group (AfDB), and partner institutions have jointly appointed Inspired Evolution as investment manager for Zafiri, a new $1 billion decentralized renewable energy (DRE) investment vehicle.
The initiative marks a major leap under Mission 300 (M300) — a joint platform by the World Bank Group and AfDB — aimed at delivering first-time electricity access to 300 million people in Sub-Saharan Africa by 2030.
Bridging Africa’s Energy Financing Gap
Zafiri will provide long-term equity financing to small-scale and distributed renewable energy companies that remain underserved by traditional lenders, including firms focused on off-grid solar, mini-grids, and clean cooking solutions. Its founding partners include IFC, AfDB, The Rockefeller Foundation, the Trade and Development Bank Group (TDB Group), and the Nordic Development Fund (NDF).
Driving Impact Through Equity Financing
“A key challenge slowing Africa’s energy transition is the lack of equity financing for distributed energy companies—those expanding power generation and improving access for millions,” said Ethiopis Tafara, IFC Vice President for Africa. “Zafiri addresses this missing middle by offering long-term equity to these providers, helping scale innovative business models.”
IFC noted that the initiative is expected to reach 30 million people and generate thousands of jobs while deepening its support for scalable, impactful energy solutions.
Echoing this, Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, said Zafiri would “inject the much-needed risk capital to take the DRE sector to the next level in terms of commercial maturity and community impact.”
Inspired Evolution to Lead Implementation
Founded in 2007, Inspired Evolution is a Cape Town-based clean energy investment firm with over $850 million in managed assets. The company has financed more than 10GW of renewable energy projects and supported 29 companies across 18 African countries.
Co-Founder and Managing Partner Wayne Keast stated, “We are honored to lead this initiative. Zafiri will focus on building and scaling high-impact businesses capable of delivering clean, affordable, and reliable energy while driving inclusive and climate-resilient growth.”
Long-Term Vision for Sustainable Access
Zafiri will begin operations in early 2026 with an initial capitalization of $300 million and plans to scale to $1 billion. Structured as a permanent capital investment vehicle, it will use concessional junior equity to de-risk private sector participation and attract commercial investors.
According to Ghita Benabderrazik of The Rockefeller Foundation, the Foundation’s $10 million investment reaffirms its commitment to expanding distributed renewable energy access. Meanwhile, Admassu Tadesse, President of TDB Group, emphasized that equity-based financing complements existing debt mechanisms, ensuring comprehensive support for small-scale DRE providers.
With Inspired Evolution at the helm, Zafiri is poised to become a transformative catalyst for Africa’s clean energy expansion—mobilizing private capital, fostering innovation, and lighting up millions of homes and businesses across the continent.
