Evolution Fund III
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.