A landmark investment vehicle is launching this July in Mauritius with a clear purpose: to attract long-term capital into off-grid and distributed renewable energy solutions across Sub-Saharan Africa. Named Zafiri, the platform has already secured $300 million in its first phase—split evenly between senior and junior equity—from a coalition of development financiers and philanthropies. The International Finance Corporation (IFC) is contributing up to $120 million, while the African Development Bank (AfDB) and Rockefeller Foundation are backing the initiative as foundational partners
Zafiri is designed to serve as a blended finance vehicle, combining patient concessional capital and commercial equity to fill a critical gap in infrastructure funding. Unlike traditional debt-heavy models, Zafiri provides long-term equity financing that targets distributed renewable energy (DRE) projects such as mini-grids, metro-grids, clean cooking, and solar home systems. These decentralized energy solutions are essential to powering rural regions where more than 570 million people remain without electricity
Structure and Strategy
Establishing itself in Mauritius, Zafiri will operate through an independent investment manager, yet to be appointed. Its initial $300 million funding round includes $150 million in senior equity and $150 million in junior equity from multilateral development banks, DFIs, and philanthropic donors. Additional funding of up to $300 million is expected in a second round once the fund demonstrates strong traction. The vehicle aims for a bold target—a $1 billion net asset value over 10–15 years through portfolio growth and capital reinvestment
Zafiri will concentrate on mini- and metro-grid developers, especially those anchoring their revenues with commercial and industrial offtakers. These C&I clients offer stable cash flow, addressing key revenue predictability challenges for early-stage DRE firms.
Mission 300: A Catalyst for Energy Equity
Zafiri is a flagship component of Mission 300—a joint initiative by the World Bank Group and AfDB aimed at providing electricity to 300 million Africans by 2030. The program recognizes off-grid solar as a cost-effective solution for reaching remote communities, projecting household savings of $5.6 billion and support for two million micro-enterprises. Zafiri complements broader efforts to build enabling policies, grant technical assistance, and mobilize investment through platforms like SEforALL and GEAPP.
Bridging Risk and Attracting Capital
One of Zafiri’s key innovations lies in derisking investments. By deploying concessionary capital at the junior level, the fund can absorb early losses and offer protection to commercial equity partners, thus unlocking large-scale private capital. This structure helps overcome long-standing barriers to fundraising in rural clean energy, where projects often take years to become profitable.
Moreover, Zafiri provides patient equity, giving developers the time they need to prove and scale their business models. This is in sharp contrast with short-term debt structures that have constrained the growth of many early-stage DRE companies.
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What Success Looks Like
To be considered successful, Zafiri must:
- Appoint a strong investment manager capable of building a pipeline of viable DRE projects across multiple countries.
- Deliver measurable impact by increasing energy access and emissions reductions.
- Catalyze a second wave of funding surpassing the initial capital, ideally from large institutional investors.
If it achieves operational success, Zafiri could not only potentially power tens of millions by the end of the decade but also chart a new roadmap for energy infrastructure investing in emerging markets. It would prove that catalytic capital, when structured thoughtfully, can unlock enduring private sector engagement.
A Turning Point
Zafiri’s emergence marks an inflection point in Africa’s energy finance story. With its combination of concessional support, patient equity, and pragmatic focus on distributed infrastructure, it could revolutionize how governments, DFIs, and private investors converge around Africa’s off-grid opportunity.
As the vehicle begins investing this July, stakeholders from the IFC to the Rockefeller Foundation—and ultimately millions of off-grid users—will be watching closely. If Zafiri can transform patient capital into real-world electrification, it may well kindle a broader surge of investment in climate-resilient infrastructure across developing economies.
