FinDev Canada and its 2X Canada facility have announced that the Energy Entrepreneurs Growth Fund would receive up to US$ 13 million in funding from FinDev Canada and its 2X Canada facility (EEGF).
The Energy Entrepreneurs Growth Fund provides early and growth-stage entrepreneurs with catalytic finance and technical assistance to improve access to clean, safe, dependable, and affordable energy for off-grid homes and businesses in Sub-Saharan Africa.
The EEGF was established in 2019 by Shell Foundation and FMO, the Dutch Entrepreneurial Development Bank, with support from the UK government.
The use of blended finance will enable the EEGF to acquire extra capital, which was a major challenge during the COVID-19 crisis, and to expand its positive impact on enhancing energy access and advancing women’s economic empowerment.
This is FinDev Canada’s first transaction under the recently formed 2X Canada: Inclusive Economic Recovery, a FinDev Canada-led and Global Affairs Canada-funded facility. The 2X Challenge will be met by at least half of the energy enterprises that receive EEGF funding. The Fund will address the specific energy demands of African women consumers and business owners through its investments. The Fund also pledges to promote inclusive practices among its portfolio companies, resulting in a positive impact on regional women’s economic empowerment.
“The pandemic has hindered electrification in Africa, which was already behind before the health crisis,” said Paulo Martelli, FinDev Canada’s Vice President, and Chief Investment Officer. FinDev Canada and its 2X Canada facility support energy companies committed to expanding access to clean and reliable energy for African households and businesses, resulting in inclusive and sustainable growth and the improvement of millions of lives by increasing EEGF’s capacity to invest in this sector.
EEGF supports energy entrepreneurs to scale and eventually become more appealing to conventional finance and equity markets by providing flexible and patient financing alternatives — catalytic debt, mezzanine debt, equity, and technical assistance – adapted to their needs.
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