UK backing enables new Africa-focused climate fund to achieve US$200mfirst close
The Helios Climate, Energy Access, and Resilience (CLEAR) Fund has achieved its first close.
CLEAR Fund has secured approximately US$200 million in anchor investment from eight leading institutions.
This includes investment from PIDG company InfraCo Africa, the Foreign, Commonwealth and Development Office (FCDO), and British International Investment (BII).
CLEAR aims to become the largest Africa-focused climate fund with a target size of US$400 million.
31 July, London - Catalytic backing from the United Kingdom has enabled the Helios Climate, Energy Access, and Resilience (CLEAR) Fund to raise approximately US$200 million in its first close for investment in African businesses focused on climate mitigation and adaptation. The Fund, managed by Helios Investment Partners, intends to become the largest Africa-focused climate fund with a target size of US$400 million.
Following initial catalytic backing by PIDG company InfraCo Africa and the UK’s FCDO, through the MOBILIST programme, a further six leading climate investors committed to anchor CLEAR’s first close. Among them are:
British International Investment, the UK’s development finance institution and impact investor
The European Investment Bank
The Emerging Markets Climate Action Fund, advised by EIB and managed by Allianz
Global Investors
The Dutch Development Bank
The Swiss Investment Fund for Emerging Markets, advised by ResponsAbility Investments AG
Helios, which is the largest Africa-focused private investment firm, will begin investing the capital with immediate effect. The Fund’s ambition is to support and scale African climate champions. It will focus on five key areas:
Green energy solutions
Climate-smart agriculture & food
Green mobility and logistics
Recycling and resource efficiency
Digital and financial climate enablers
Research commissioned by MOBILIST shows that sub-Saharan Africa’s renewable energy market already represents a potential investment opportunity of $193 billion by 2031. Despite the scale of the opportunity, the International Renewable Energy Agency estimates that Africa currently attracts only 3% of global energy investment.
Anneliese Dodds, UK Minister for Development said: “This Government is determined to restore the UK’s reputation as a world leader on climate. We need to act now to avoid further environmental devastation that will fuel illegal migration, conflict, and famine across the world. The UK-supported CLEAR Fund is a first of its kind to invest in mid-sized African companies seeking to avoid and reduce carbon emissions, helping people to become more resilient and to adapt to the climate crisis. It is a great example of how UK innovation is helping to mobilise climate finance for Africa, enabling businesses on the continent to deliver climate-friendly solutions. It’s one more step towards realising our mission of a world free from poverty on a liveable planet.”
Gilles Vaes, Chief Executive Officer at InfraCo Africa (PIDG), said: “Today’s announcement marks a key milestone for CLEAR – a Fund conceived by PIDG company InfraCo Africa, through its investment arm InfraCo Africa Investment Ltd, and Helios Investment Partners, with support from ThirdWay Partners and FCDO’s MOBILIST. It is also a watershed moment for African growth businesses – and the associated infrastructure – seeking to address the climate crisis. CLEAR will unlock much-needed access to finance and exit routes for climate entrepreneurs whilst giving investors comfort that their investments will generate the growth they expect and support global efforts to address climate change, in line with the PIDG strategy, which was launched in 2023.
Christopher Chijiutomi, Managing Director and Head of Africa at BII, said: “We are delighted to once again partner with Helios Investment Partners to support the growth of African companies. As the UK’s development finance institution, this investment also reinforces BII’s commitment to supporting Africa’s green transition. Mobilising much-needed private capital into green sectors through this Fund will help to drive innovation and create new opportunities, contributing to a resilient and prosperous future for Africa.”
Ross Ferguson, who leads the MOBILIST programme at the FCDO said: “Africa must overcome a significant climate financing gap to realise its climate transition and MOBILIST will act wherever there are opportunities to unlocking climate and development finance, including through faster reform of the global financial system. As such, FCDO, through MOBILIST, is proud to partner with Helios Investment Partners, one of Africa's foremost private equity managers with deep expertise in creating secondary market liquidity for investors in Africa, including through Helios Towers and Vivo Energy. Joining MOBILIST and InfraCo Africa Investment Ltd , a powerful consortium of development finance practitioners is now anchoring this landmark fund to mobilise commercial capital toward addressing Africa's climate mitigation and adaptation needs.”
About the Foreign Commonwealth & Development Office
The Foreign, Commonwealth & Development Office (FCDO) pursues the UK’s national interests and projects the UK as a force for good in the world. We promote the interests of British citizens, safeguard the UK’s security, defend our values, reduce poverty and tackle global challenges with our international partners.
www.gov.uk/government/organisations/foreigncommonwealth-development-office
About The Private Infrastructure Development Group (PIDG)
PIDG is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and South and Southeast Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). Since 2002, PIDG has supported 233 infrastructure projects to financial close, which provided an estimated 228 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Global Affairs Canada, Germany, and the IFC.
www.pidg.org
About InfraCo Africa
InfraCo Africa is part of PIDG and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects and by providing development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO).
www.infracoafrica.com
About MOBILIST
A flagship UK government programme, MOBILIST supports investment solutions that help deliver the climate transition and the United Nation’s Global Goals in developing economies. MOBILIST focuses on mobilising institutional capital to spur new scalable and replicable financial products. MOBILIST invests capital, delivers technical assistance, conducts research and builds partnerships to catalyse investment in new listed products.
www.mobilistglobal.com
About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022 and 2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk
About the Emerging Market Climate Action Fund (EMCAF)
EMFCAF is an innovative blended finance fund initiated by the EIB and AllianzGI and launched at COP26. It provides catalytic early-stage equity financing to greenfield climate mitigation and adaptation projects as well as companies with a green business model in emerging and developing markets. EMCAF is expected to invest in about twelve to fifteen funds, which should support around 150 climate change mitigation, adaptation and environmental sustainability projects. Anchor investors in EMCAF since the start include the governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, Folksam Group and EIB. EMCAF recently held its third close at €385 million, with commitments from FCDO and Kreditanstalt für Wiederaufbau (KfW) on behalf of Germany’s Ministry for Economic Affairs and Climate Action.