…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.
WED JULY 31 2024-theGBJournal| 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.
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.”
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 and the Swiss Investment Fund for Emerging Markets, advised by ResponsAbility Investments AG.
“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,” says Gilles Vaes, Chief Executive Officer at InfraCo Africa.
”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.”
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.
Christopher Chijiutomi, Managing Director and Head of Africa at BII, said they 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 adds that 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.”
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