The world has made significant progress in getting people connected to electricity and energy sources: more than 90% of people have access to electricity (though reliability remains a problem in many places).
Acumenās Hardest to Reach energy initiative focuses on the remaining 670 million unconnected people, most of whom are in Africa. The impact investor has raised $246.5 million for the flexible financing strategy. Its goal is 250 million.Ā
āAt a time when many are pulling back, this coalition is stepping up with capital designed not just to invest, but to solve,ā said Acumenās Jacqueline Novogratz.
Working capital
Hardest to Reach, or H2R, was launched in 2023 at COP28 in Dubai, as a blended-finance initiative to deliver off-grid solar products and systems to households and businesses in Somalia, Benin, Lesotho, the Democratic Republic of the Congo and other energy-poor frontier economies. It was anchored with $65 million from the Green Climate Fund. Other early funders include South Korea-based Shinhan Bank, the now defunct USAID, the Global Energy Alliance for People and Planet, and British hedge fund manager Christopher Hohn.
Funding is deployed via two vehicles. H2R Amplify is a debt facility that provides impact-linked loans and receivables-backed financing to help solar companies cover their working capital and growth capital needs. It has $189 million in commitments from the International Finance Corp., British International Investment (which invested $20 million), the Soros Economic Development Fund ($15 million), the Nordic Development Fund (which provided a $10.5 million grant), Signify Foundation, ImpactAssets and others.
Market building
The second vehicle, H2R Catalyze, provides a mix of equity, debt and grants for early-stage solar companies working in H2Rās target markets. It has raised $57 million and deployed $10 million. Its portfolio includes Yellow in Malawi, KIMS in Somalia, and RDG Collective in Zambia.Ā
Catalyze backers include the Norwegian Agency for Development Cooperation, US-based Osprey Foundation, the UK governmentās Transforming Energy Access platform, Cazenove Capital, Good Energies, high-net-worth individuals and other investors.
