Acumen secures $246.5M to tackle energy poverty in Sub-Saharan Africa

Global impact investor Acumen has successfully raised $246.5 million for its landmark Hardest-to-Reach (H2R) Initiative, a blended finance strategy aimed at accelerating clean energy access in sub-Saharan Africa’s most underserved regions. Launched at COP28, the initiative is now backed by a powerful coalition of development finance institutions, commercial banks, and philanthropic organizations, including the Green Climate Fund (GCF), International Finance Corporation (IFC), British International Investment (BII), and Shinhan Bank of South Korea.

The H2R Initiative targets 17 African countries, with the goal of delivering electricity to nearly 70 million people living in areas where traditional commercial investment has been limited due to high perceived risks. These include countries with extremely low electrification rates, such as Malawi (16%) and Burkina Faso (22%).

To address the diverse needs of energy startups operating in frontier markets, the H2R Initiative employs a two-pronged financing structure:

• H2R Amplify – $189.5 million approved
  This debt-focused vehicle supports growth-stage companies with proven business models. It offers impact-linked loans, where repayment terms are tied to measurable social outcomes. The fund has already reached a first close of $123 million, and is designed to attract commercial capital by offering risk protection and enhanced returns through a tiered blended finance model.
• H2R Catalyze – $57 million committed
  Active since early 2024, this flexible facility supports early-stage ventures through a mix of equity, debt, grants, and technical assistance. It aims to help startups overcome barriers that traditional financing cannot address, paving the way for future scale-up through H2R Amplify.

The initiative is supported by a diverse group of public and private institutions, reflecting a coordinated effort to tackle energy poverty at scale. Key partners include:

• IFC, whose Vice President of Industries, Mohamed Gouled, stated: “Expanding access to affordable, reliable, and clean energy is essential for unlocking economic opportunity. [H2R] is an innovative financing and reach model that blends public, private, and philanthropic capital to deliver impact where it is needed most.”
• BII, the UK’s development finance institution, which emphasized the initiative’s alignment with the 2X Challenge, promoting gender equity.
• Shinhan Bank, a major Korean commercial bank, whose Deputy President Seung Hyeon Seo noted: “The blended finance structure enables us, as a leading Korean bank, to channel capital into the toughest markets.”

Other notable contributors include the Soros Economic Development Fund (SEDF), Nordic Development Fund (NDF), and the Global Energy Alliance for People and Planet (GEAPP).

Africa’s energy frontier has long been constrained by high investment risk and currency volatility, deterring commercial investors. Acumen’s blended finance model directly addresses these challenges:

• H2R Catalyze absorbs early-stage risks, helping companies establish a foothold.
• H2R Amplify provides scalable debt financing once models are proven, enabling rapid expansion.

This de-risking strategy is essential for unlocking the private capital needed to close Africa’s energy gap.

H2R Catalyze has already deployed over $10 million across seven companies, showcasing its impact-driven approach:

• Yellow Malawi – $2 million
  Structured in local currency to mitigate FX risk for a pay-as-you-go solar provider.
• RDG Collective – $1.25 million
  An impact-indexed loan to expand clean lighting in Zambia via last-mile distribution.
• KIMS Microfinance – $1 million
  A Sharia-compliant debt investment to support energy financing in Somalia, a market largely overlooked by global investors.

With the first close of H2R Amplify complete, Acumen is actively sourcing new opportunities to accelerate its mission of lifting millions out of energy poverty and into economic empowerment.