| Work Detail |
At the 29th U.N. Climate Change Conference (COP29) in Baku, Azerbaijan, the International Finance Corporation (IFC), part of the World Bank Group, announced that its Board of Directors has approved an investment in Acumen’s Hardest to Reach (H2R) initiative. This project aims to bring clean and affordable energy to remote areas in Sub-Saharan Africa. It is the first blended finance initiative focused on providing solar energy systems to households in the most difficult-to-reach communities across Africa.
The Acumen H2R initiative will support off-grid solar companies with flexible, impact-focused loans and long-term investment. The 2024 Off-Grid Solar Market Trends Report by the World Bank and GOGLA highlights that off-grid solar solutions are the most affordable and quickest way to provide basic electricity to over 40% of people who still lack access to power globally by 2030. Between 2020 and 2022, distributed energy solutions contributed to 55% of new connections in Sub-Saharan Africa, home to 80% of the world’s unelectrified population, helping to boost economic opportunities and improve living standards.
Makhtar Diop, Managing Director, IFC, said in a statement, “IFC’s investment in Acumen’s H2R initiative underscores our commitment to addressing the critical energy access gap in Sub-Saharan Africa, where nearly 600 million people lack basic electricity. Initiatives like this one can help to catalyze off-grid solar markets in African countries, encouraging more international companies to expand into them, and supporting local companies to sustainably and efficiently scale up their operations.”
Jacqueline Novogratz, Acumen’s Founder and CEO, also mentioned, “Acumen’s Hardest-to-Reach initiative is a vital step toward solving energy poverty for communities often overlooked in the climate transition. For too long, we’ve under-invested in these areas and underestimated their potential. Hardest-to-Reach opens the door to a real pathway out of energy poverty. Since its launch, H2R has disbursed $10 million across six countries. With IFC’s partnership, we can scale this impact and move closer to clean energy access for all.”
With IFC’s support, the H2R initiative will help millions gain access to household solar power, reducing reliance on kerosene and diesel and lowering greenhouse gas emissions. It will also play a significant role in Mission 300, a joint effort by the World Bank Group and the African Development Bank to connect 300 million people to electricity in Africa by 2030. IFC plans to invest up to US$25 million in the Acumen H2R initiative. To reduce risks for private investors and lower costs for borrowers, IFC will also work to raise up to $20 million from the IDA Private Sector Window Blended Finance Facility.
This initiative is vital for achieving universal energy access (SDG7) and meeting global emissions reduction targets. It builds on Acumen’s nearly 20 years of experience in investing in companies and markets that bring energy solutions to off-grid, low-income communities in Africa. So far, Acumen’s energy portfolio includes over 40 companies, improving the lives of more than 300 million people and preventing over 50 million tons of greenhouse gas emissions. |
