Acumen has launched its second KawiSafi fund with $90 million in approved capital, including $40 million in committed funding, to expand climate solutions across Africa. The initiative builds on nearly a decade of experience in financing clean energy and resilience-focused ventures. It aims to advance Africa’s low-carbon transition at a time when the continent is highly exposed to climate risks.
Building on the First Fund
KawiSafi Fund II follows the success of the original $67 million KawiSafi Clean Energy Fund, launched in 2016. The first fund supported pioneering off-grid energy companies, demonstrating the viability of distributed clean energy markets. With Fund II, Acumen is broadening its strategy to cover a wider range of climate and energy sectors.
Strategic Approach
The new fund pursues a for-profit investment strategy that blends catalytic equity with a focus on measurable climate outcomes. It targets entrepreneurs who can scale businesses that provide energy access, economic opportunity, and environmental resilience. By combining growth capital with impact objectives, the fund seeks to prove that climate action and financial returns can be mutually reinforcing.
Africa’s Climate Vulnerability
Africa contributes the least to global emissions yet faces the most severe consequences of climate change. Increasing droughts, floods, and sea-level rise threaten livelihoods and risk pushing millions deeper into poverty. With only 6 percent of global climate investment flowing to the continent, initiatives like KawiSafi aim to close this gap.
Target Sectors and Impact Goals
Fund II will invest in distributed renewable energy, clean transportation, clean cooking, and nature-based carbon solutions, alongside projects that expand access to carbon finance. These business models are expected to generate decent work and meet everyday needs while reducing emissions. The fund’s stated goal is to impact 50 million people and avert 50 million tons of CO₂.
Anchor Investors and Partnerships
Anchor backers include the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), the Green Climate Fund, the Schmidt Family Foundation, and the Quadrature Climate Foundation. Their participation reflects growing institutional support for blended finance models that de-risk climate investment. By leveraging concessional capital, the fund intends to crowd in more commercial and institutional investors.
Market Significance
The fund’s launch comes at a critical moment in Africa’s energy transition, as extending access requires investment beyond traditional grids. Many communities remain excluded from national energy systems, making distributed solutions essential. By channeling capital to locally rooted entrepreneurs, Fund II positions itself as a catalyst for systemic change.
Leadership Perspectives
Amar Inamdar, Managing Director of the KawiSafi funds, emphasized that raising $90 million signals the urgency of channeling capital toward inclusive climate solutions. João Duarte Cunha of the African Development Bank noted that the fund provides much-needed venture and growth capital to African businesses advancing energy access. Acumen’s founder and CEO Jacqueline Novogratz highlighted the coalition of partners and local insights underpinning the initiative’s long-term success.
KawiSafi Fund II underscores Acumen’s commitment to scaling climate resilience in Africa through for-profit, catalytic investment. By combining institutional backing, blended finance structures, and ambitious impact goals, the fund is designed to mobilize capital at scale. As climate impacts intensify, this effort represents a critical step toward building an inclusive, low-carbon future across the continent.