The Dutch development bank FMO has joined Energy Access Ventures (EAV), a venture capital firm focused on Africa, in raising its Fund I vehicle to €75 million.
FMO has increased the fund’s capital with the support of its existing partners, Schneider Electric and UK development finance institution CDC.
“We believe EAV represents a unique opportunity to invest in an existing operational team with a thorough understanding of the energy market in Sub-Saharan Africa, combined with solid expertise in early-stage investing. This investment fits with FMO’s strategic agenda in terms of promoting renewable energy, inclusive growth and innovation,” said Marieke Roestenberg, senior investment officer at FMO.
Roestenberg explained that the investment will allow FMO to gain exposure to and improve an understanding of the dynamic and rapidly expanding energy access market.
“Not only will the fund aim to provide improved access to energy to several million underserved consumers in Sub-Saharan Africa, but it is also actively exploring innovative businesses promoting the productive use of solar energy and other transformational business models,” she added.
According to the World Bank, under a quarter of the sub-Saharan African population has access to electricity. The region faces unreliable electricity services, and African manufacturing enterprises experience power outages amounting to an average of 56 days per year.
Roestenberg said that FMO will invest in large-scale on-grid renewable energy, such as wind and solar but also to address people’s needs in remote areas, FMO will support off-grid solutions, such as mini-grids and solar home systems, to provide power to people who previously did not have a stable supply.
EAV Fund I is sponsored by the leading French multinational Schneider Electric and is managed by Aster Capital.
Additional investors include CDC Group, the European Investment Bank, the Fonds d’Investissement et de Soutien aux Entreprises en Afrique (FISEA) held by Agence Française de Développement (AFD) and managed by Proparco,and the Fonds Français pour l’Environnement Mondial (FFEM), administered by AFD and the OPEC Fund for International Development (OFID).