Empowering Africa: NDF's $10.5 million push for clean energy in Hardest-to-Reach regions
Nordic Development Fund, Green Climate Fund, IFC, Shinhan Bank, BII, SEDF, and others back effort to reach 70 million people in sub-Saharan Africa’s hardest-to-reach markets. Photo: Acumen
Acumen, a new strategic partner for NDF, announces the public launch of the now fully operational Hardest-to-Reach Initiative (H2R), supporting energy-poor communities in Africa.
"NDF is proud to support the Hardest-to-Reach Initiative and Acumen’s efforts to align diverse financing streams for expanding energy access in underserved regions,” says Satu Santala, Managing Director of Nordic Development Fund.
Acumen, a trusted partner for NDF, announced today it has secured USD 246.5 million in approved and committed capital for its Hardest-to-Reach Initiative (H2R), a first-of-its-kind blended finance strategy to scale clean and inclusive energy solutions in Sub-Saharan Africa’s most underserved regions.
The milestone reflects approximately USD 189.5 million in approved capital for H2R Amplify, the initiative’s debt vehicle designed to provide reliable growth capital, including USD 123 million committed in its first close, alongside USD 57 million already committed through H2R Catalyze, its flexible, market-building facility. H2R Catalyze is already investing in early-stage companies in priority markets. Together, these approaches position H2R to expand electricity access in places where traditional capital has long failed to reach.
“We applaud for achieving the milestone of launching H2R Amplify. Our innovative USD 10.5 million concessional funding portion, including USD 10 million already committed and an additional USD 500,000 subject to finalisation, will be particularly used to incentivise the Off-Grid Solar companies to bring affordable energy to currently unserved — or first-time — lowest-income customers. The NDF funding will also create positive impacts on gender, inclusion, adaptation, and resilience. With H2R now fully operational, we look forward to transforming lives in sub-Saharan Africa in cooperation with our like-minded investors," Santala continues.
Aims to reach 70 million people
Launched at COP28 in 2023, H2R is anchored by an award from the Green Climate Fund (GCF) and represents Acumen’s most ambitious energy effort to date. The initiative aims to reach 70 million people across 17 countries, including 50 million first-time energy users in areas with some of the lowest electrification rates in the world, according to the World Bank, such as Malawi (16%), Burkina Faso (22%), Sierra Leone (36%), and others. In 2023, 600 million sub-Saharan Africans still lacked access to electricity.
Using a creative approach to finance, the initiative invests in off-grid solar companies working to provide energy access for unelectrified households.
“At a time when many are pulling back, this coalition is stepping up with capital designed not just to invest, but to solve,” says Jacqueline Novogratz, Acumen’s Founder and CEO.
“This is the first time public, private, and philanthropic partners have come together behind a model built to reach the hardest-to-reach. It’s a clear example of what’s possible when capital aligns with purpose to tackle energy poverty at scale,” Novogratz continues.
A coalition built for scale
Besides Nordic Development Fund, a growing group of investors joins forces to scale its impact. With the first close of H2R Amplify, a diverse set of public and private institutions, including the GCF, International Finance Corporation (IFC), Shinhan Bank, British International Investment (BII), Soros Economic Development Fund (SEDF), Signify Foundation, and ImpactAssets, are part of the initiative’s next chapter.
These partners build on the foundation laid by H2R Catalyze partners including the Green Climate Fund (GCF), the Norwegian Agency for Development Cooperation (Norad), Global Energy Alliance for People and Planet (GEAPP), Osprey Foundation, the UK government via the Transforming Energy Access platform, Cazenove Capital, Good Energies, and several individual philanthropists and high-net-worth supporters. Together, this coalition represents a unique alignment of philanthropic, development, and commercial capital, working in concert to solve one of the most pressing challenges of our time.
With funding secured, Acumen is now sourcing new investment opportunities, prioritising solutions that expand affordability, unlock underserved markets, and move millions up the energy ladder.
To learn more, read Acumen's full press release here.