Catalytic financing in Sub-Saharan Africa
Energy Entrepreneurs Growth Fund for Clean Energy Access, Sub-Saharan Africa
Who is our client
Shell Foundation and FMO have launched the Energy Entrepreneurs Growth Fund (EEGF) providing catalytic financing to early growth stage companies in Sub-Saharan Africa (SSA). Triple Jump is acting as portfolio manager and Persistent serves as investment advisor to the fund. FMO provides USD 7.5 million from AEF and USD 7.5 million from Building Prospects.
Funding objective
With a fund life of 12 years, EEGF provides a longer investment holding and support period, recognizing the inherent need for such businesses in emerging economies to unlock value creation to their stakeholders.
The fund has a flexible product offering, providing equity and debt financing (including mezzanine and subordinated debt) to high impact energy enterprises that are primarily active in off-grid and/or decentralized energy solutions. EEGF aims to become a USD 120 million fund. In addition, through the unique partnership between Triple Jump and Persistent, EEGF’s investee companies will be able to benefit from hands-on operational support and advice in order to help them transition into the next stages of development.
Why we fund this project
The access to clean energy space is still a rather small but fast-growing industry. The EEGF will help bridge the funding gap which today prevents early stage energy companies from accessing the range of risk capital and business support they need to develop to the next stage and ultimately attract commercial capital.