Zafiri [C176]

OBJECTIVE

One of the key challenges slowing Africa’s energy transition is the lack of equity financing for distributed energy companies—those expanding power generation and improving energy access for millions of currently underserved people. Zafiri, a flagship investment company, initiated by IFC under Mission 300, addresses this ‘missing middle’ by channelling long-term equity into distributed renewable energy (DRE) companies to unlock debt financing and mobilise risk capital at scale to accelerate DRE market growth. 

Zafiri will invest in DRE companies and projects across Sub-Saharan Africa, including mini-grids, solar home systems, productive-use energy solutions, and clean cooking enterprises. Through its blended financing structure with sizable initial concessional equity, Zafiri aims to prove to commercial investors that the DRE sector generates attractive risk-return profiles, as sizable private capital flows are needed to close the energy access gap in Sub-Saharan Africa. Through investing patient equity and providing targeted technical assistance, Zafiri helps build and scale high-impact businesses that can deliver clean, affordable and reliable energy while driving inclusive and climate-resilient economic growth. Zafiri will help connect more households and businesses to renewable power, enabling productive uses that drive local economic activity and spur job creation, while transforming lives and livelihoods of climate-vulnerable communities.

Zafiri plays a central role in Mission 300, a joint initiative of the WBG and AfDB to provide first-time electricity access to 300 million people in Sub-Saharan Africa by 2030. At least 50% of the platform’s capital is expected to support sub-sectors that provide people with new or improved electricity connections. Zafiri aims to facilitate more than 10 million new electricity connections by 2030, rising to at least 30 million over its lifetime.

FINANCING

NDF provides concessional equity financing of USD 15 million and a technical assistance grant of USD 2 million. Together with other founding shareholders, Zafiri has achieved an initial commercial close of USD 176 million in June 2026. A final close of USD 300 million is expected within 12 months, with a longer-term ambition to scale up to USD 1 billion to accelerate energy access in Sub-Saharan Africa. In addition to NDF, the 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); the John D. and Catherine T. MacArthur Foundation; and FirstRand Limited.