Swiss Investment Fund
for Emerging Markets

Search
Close this search box.

Evolution III

The fund invests in renewable energy infrastructure and in growth-companies in the fields of energy efficiency, water treatment, agricultural value chain or other environmental projects. While its focus is on Sub-Saharan Africa, it considers investing in several LDCs and SIFEM-priority countries. This investment is fully aligned with SIFEM’s climate objectives and contributes to climate mitigation, adaptation, and the transition to clean energy economies. It directly impacts SDGs 7, 12, and 13. SIFEM commits USD 20m along several other DFIs.

Evolution III

The fund invests in renewable energy infrastructure and in growth-companies in the fields of energy efficiency, water treatment, agricultural value chain or other environmental projects. While its focus is on Sub-Saharan Africa, it considers investing in several LDCs and SIFEM-priority countries. This investment is fully aligned with SIFEM’s climate objectives and contributes to climate mitigation, adaptation, and the transition to clean energy economies. It directly impacts SDGs 7, 12, and 13. SIFEM commits USD 20m along several other DFIs.

About the fund

Africa was hit hard by the pandemic and more recently by the soaring food, energy, and commodity prices. The overlapping crises even reversed positive trends in improving access to modern energy, with 4% more people living without electricity in 2021 than in 2019. At the same time, demand for energy services in Africa grows rapidly both for economic activities and household use. Evolution Fund III not only helps fill the supply gap, but also contributes to the clean energy transition and hence climate change mitigation. It invests in grid-tied and distributed renewable energy generation, and finances companies contributing to resource efficiency such as waste management, water treatment and energy efficiency. These investments support adaptation to climate change in a region, which is even more affected than others. SIFEM’s investment is based on a long-term collaboration with the fund manager and aligned with commitments of several European DFIs.

Development Rationale

The fund addresses the growing need for more clean energy on the contintent: still over 40% of the population has no access to electricity, and urbanisation and growing economies require more reliable energy. The fund also tackles adaptation measures to climate change and is expected to create new jobs directly and indirectly. The fund manager appies a gender lens.

Investment Rationale

The fund addresses directly solutions to climate change mitigation and adaptation in Subsahara Africa, a region where the energy gap is still huge and private capital scarce. The manager has a proven trackrecord and is a longterm partner to SIFEM. SIFEM invests alongside other DFIs.

Contribution to strategic objectives

  • Gender equality: fulfilling criteria 3 (Employment) and 5 (Investment through Financial Intermediaries)
  • Contribution to essential goods/innovation: access to reliable & clean energy
  • Climate mitigation/adaptation: clean energy production
  • Contribution to LDC exposure: up to 11 LDCs
  • Priority countries: up to 18 countries

Additionality

  • Financial Additionality: provision of long-term capital
  • Sustainability Additionality: Fund manager’s ESMS system and focus on safe working conditions
Reference code
2023-01
Status
Committed
Date of commmitment
January 2023
Date of exit
-
Fund size
USD
400,000,000
SIFEM commitment
USD
20,000,000
Asset class
Private Equity
Investment strategy
Investment through Fund

Target focus

Renewable Energy
Energy Efficiency
Fund manager
Inspired Evolution Investment Management