Off-Grid Energy Access Fund

Overview

The Off-Grid Energy Access Fund (OGEF) is a blended finance facility established to support the expansion of off-grid renewable energy solutions across Sub-Saharan Africa. Managed by Cygnum Capital Group, OGEF aims to provide flexible financing to companies delivering affordable and sustainable energy to underserved communities. The fund focuses on scaling access to clean electricity for off-grid and underserved households, with a particular emphasis on mobilizing local currency financing and engaging local financial institutions as co-lenders. OGEF employs a range of debt instruments, including receivables lending, inventory finance, working capital lending, and corporate debt, to enhance the availability of local currency debt and strengthen local capital markets. The fund's investment strategy is technology-agnostic, supporting various renewable energy solutions that contribute to mitigating greenhouse gas emissions. It targets small-scale distributed power projects, such as off-grid solutions, mini-grids, and grid-tied installations, with a capacity of up to 25 MW. Since its inception, OGEF has made significant investments in companies like M-KOPA, a fintech platform providing digital financial services to underbanked consumers. By investing in such companies, OGEF aims to drive a low-carbon paradigm shift and leapfrog fossil fuel grids to clean energy, leveraging equity capital to attract additional investment and grant capital to establish a Technical Assistance Facility. The fund's approach aligns with the African Development Bank's High 5 promise of Lighting Up and Powering Africa by 2025, contributing to the continent's sustainable development goals.

Investment Focus

• Companies providing affordable renewable energy off the grid in Sub-Saharan Africa
• Projects with a capacity of up to 25 MW
• Technologies that mitigate greenhouse gas emissions
• Engagement with local financial institutions as co-lenders

Portfolio Companies