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Acumen, a renowned impact investor, unveiled its groundbreaking $250 million initiative, Hardest-to-Reach, aimed at catalyzing clean energy markets in underserved regions across Africa. The initiative, dedicated to realizing universal energy access, was introduced at COP28’s SDG7 Pavilion, garnering support from key backers, including the Green Climate Fund (GCF). Hardest-to-Reach represents the inaugural blended finance endeavor exclusively committed to expanding clean and affordable energy access for low-income populations in overlooked African markets.
Notable contributors to the initiative include USAID Power Africa, Sir Christopher Hohn, The Global Energy Alliance for People and Planet (GEAPP), and Shinhan Bank.
Jacqueline Novogratz, Founder and CEO of Acumen, emphasized the urgent need to address a significant market failure hindering Africa’s clean energy future. The initiative aims to rectify this gap, recognizing the profound impact clean energy can have on both adaptation and long-term mitigation. Hardest-to-Reach builds on Acumen’s successful track record in providing energy access to low-income communities beyond the grid in sub-Saharan Africa.
Novogratz stated, “Bringing clean energy to those without electricity today is one of the most powerful things we do for both adaptation and long-term mitigation.” She expressed enthusiasm about multiplying successes, with the overarching goal of achieving universal energy access and averting millions of tons of carbon emissions in the coming years.
In many developing countries, ambitious climate goals are hampered by significant energy deficits. Approximately 675 million people live without electricity access, with 80 per cent residing in sub-Saharan Africa, relying on traditional fuels like kerosene and wood. Hardest-to-Reach aims to uplift sub-Saharan countries with low electrification and high poverty rates by offering flexible, impact-first financing to support off-grid solar companies.
The Green Climate Fund, contributing $65 million in direct funding, collaborates with Acumen to accelerate inclusive energy transitions in sub-Saharan Africa’s poorest regions. Mafalda Duarte, Executive Director of the Green Climate Fund, highlighted the program’s blend of debt, equity, grants, and technical assistance, set to provide clean energy for over 60 million people across 16 countries.
Jonathan Cedar, co-founder and CEO of BioLite, a company supported by Acumen, emphasized Acumen’s crucial role as a long-term strategic partner, enabling BioLite to grow exponentially, impacting millions of lives, and offsetting millions of tons of carbon.
Sir Christopher Hohn, co-founder and Chair of The Children’s Investment Fund Foundation (CIFF), expressed excitement about partnering with Acumen, highlighting the initiative’s unique focus at the intersection of poverty and climate.
Acumen’s proven commitment to serving marginalized communities in the clean energy transition has resulted in investments in 40 companies, positively impacting over 223 million lives and preventing 58.5 million tons of greenhouse gas emissions. The Hardest-to-Reach initiative received early support from various foundations and entities, including the Fourdoves Foundation, Good Energies Foundation, The Osprey Foundation, UK aid from the UK Government via the Transforming Energy Access (TEA) Platform, The Bill & Melinda Nussey Foundation, Reed Hastings, and Chris Anderson & Jacqueline Novogratz. |
