UK Backing Enables Africa-focused Climate Fund To Achieve $200m First Close

Catalytic backing from the United Kingdom has enabled the Helios Climate, Energy Access, and Resilience (CLEAR) Fund to raise $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 $400 million.

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, and Digital and financial climate enablers

Research commissioned by MOBILIST showed 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 three per cent of global energy investment.

UK minister for Development, Anneliese Dodds 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.”

Chief executive officer at InfraCo Africa (PIDG), Gilles Vaes stated, “today’s announcement marks a key milestone for CLEAR, a Fund conceived by PIDG company InfraCo Africa, through its investment arm InfraCo Africa Investment Limited, 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.”

Also, the managing director and head of Africa at BII, Christopher Chijiutomi 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 unlock climate and development finance, including through faster reform of the global financial system.

“As such, FCDO, through MOBILIST, has partnered 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.”