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The Alliance for Entrepreneurship supports early-stage companies to enhance access to electricity through low-carbon innovative business models
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PROPARCO and IFC, two core members of the Alliance for Entrepreneurship in Africa (AforE), announce their intent to support the scale up of Nuru, an early-stage company which provides decentralized and low-carbon power solutions in DRC. At the same time, during the Summit for a new global financing pact in Paris, PROPARCO also announces its investment in the first close of E3 Low Carbon Economy Fund I (LCEF), based in Kenya. The alliance is fully focused on supporting early-stage companies that need assistance to scale up.
In the light of the strategic Alliance for Entrepreneurship in Africa (AforE), PROPARCO and IFC, two core members of the AforE, announce during the Summit for a new global financing pact in Paris, their plan to join Nuru’s series B fundraising to contribute to the development of new decentralized models for the distribution of sustainable, reliable and low-carbon renewable energy in cities where access to electricity is a major issue for economic and social development. Nuru develops and operates commercially viable isolated solar-hybrid “metrogrids” (utility-scale urban mini-grids) that provide reliable, affordable and clean energy in the Eastern region of the Democratic Republic of Congo to commercial industrial (“C&I”) and retail household customers. The start-up closed its first financing round of USD 4.3 million in December 2018 from which it implemented its pilot project in Goma and installed 1.3 MWp capacity in 2020. Being an early-stage company active in the challenging environment of Eastern DRC, Nuru however aims at delivering truly wide scale and transformational impact in one of the world’s poorest countries.
The current and only second institutional fundraise provides essential access to capital to the company and will help to accelerate the implementation of at least three nationally strategic development projects in Goma, Kindu and Bunia, with an aggregate installed capacity of 13.7 MWp. Proparco plans to make its series B investment under the “African Renewable Energy Scale-Up facility” (ARE Scale Up facility), which is supported by the European Union to boost private sector investment in on–grid and off-grid renewable energy production in Africa. Jonathan Shaw, founder and CEO of Nuru: “Nuru is thrilled to have partners like PROPARCO and the IFC empowering us to deliver life-changing energy access in an extremely challenging environment. As an entrepreneur leading a business in the challenging phase of scaling, support from institutions like PROPARCO, the IFC and REPP and EAVF are key to help Nuru achieve its mission of delivering reliable, affordable, renewable energy to 5 million people in the DR Congo.”
PROPARCO equally announces its USD 6 million investment in the first close of E3 Low Carbon Economy Fund I (“E3 LCEF”), based out of Nairobi, Kenya. E3 LCEF focuses on innovative entrepreneurs that set up early-stage businesses offering low carbon decentralized and smart services across Sub Saharan Africa. The E3 Capital team behind this fund has also been managing the Energy Access Ventures Fund (EAVF), who supported Nuru early on and has been a true pioneer in offgrid renewable energy investments in Africa. PROPARCO has equally been an investor in EAVF through its FISEA program. E3 Capital and the general partner, Cygnum Capital Group (previously Lion’s Head Global Partners), have announced a first close for the E3 Low Carbon Economy Fund for Africa at USD 48 million last month and seeks further financing to get to its final close of up to USD 100 million within 12 months, targeting investors that can support the innovative potential of vibrant African entrepreneurs in the challenging but high-impact pioneering space of climate tech in Africa.
More information here: https://e3-cap.com/e3-capital-and-lions-head-global-announcement/
Françoise Lombard, Proparco’s CEO, said: “We are proud to support Nuru and E3 LCEF, which are great examples of Proparco’s investments into early-stage companies that can be transformational for the continent but need financial assistance to scale up. Together with the other members of the Alliance, we are committed to promoting this type of projects and we trust that we will be going even further in the months to come."
Makhtar Diop, IFC’s Managing Director, said, “Increasing access to reliable, affordable, and clean energy is a priority for IFC in Africa. Our support for Nuru, delivered with partners through the Alliance for Entrepreneurship in Africa, will do exactly that by helping the company scale up its model to become an important player in the DRC’s power sector, benefitting thousands of households and businesses.”