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In sub-Saharan Africa, support to climate technology entrepreneurs

Project

Signature date
Location
Multi-country Global, Kenya
Financing tool
Equity investment
Financing amount (Euro)
5528934 EUR
Financing details
USD 6m Equity Investment
Customer
E3 Low Carbon Economy Fund I SCS SICAV-RAIF
Type of customer
Investment fund
Country of headquarters
Luxembourg
Project number
IZZ1111
Environmental and social ranking
IF-B
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

Proparco (through FISEA+) has invested in the E3 LCEF fund to support early stage businesses offering low carbon decentralized and smart services across Sub Saharan Africa.

Client presentation

E3 Capital and Cygnum Capital Group (formerly Lion’s Head Group) combined forces to leverage their respective experience and footprint in Africa, from their home base in Kenya. They provide essential capital and other support to entrepreneurs in Africa at an early stage, boosting innovative solutions to for example climate change and energy production.

E3’s first fund has been one of the very few forerunner investors in the energy access and climate space in Africa and has managed to fulfil its impact mandate, while anticipating fundamental market shifts. Unlike any other initiative, E3 has been able to deploy investments in very early stage companies and several in fragile states.

The fund is backed by KfW (in collaboration with BMZ, the German Ministry for Economic Cooperation and Development), FMO, the Dutch entrepreneurial development bank, Swedfund International AB (the Swedish development finance institution), and Proparco (through FISEA+). 

Project description

E3 Capital and Lion's Head Global Partners (renamed Cygnum Capital Group) have announced a first round of funding for the E3 Low Carbon Economy Fund for Africa, raising $48 million in May 2023. The two investors are seeking further funding to reach $100 million over the next 12 months.

Project impact

The project has strong impact ambitions: 

  • Support to at least 16 start-ups specializing in renewable energies and related services (e-mobility, connectivity, energy efficiency tools and services).  
  • Creation and preservation of at least 1,120 direct jobs and contribution to the creation of skilled jobs.
  • Contribution to the reduction of CO² emissions.
  • Support to the digital transition in Africa. 

The project contributes to the Sustainable Development Goals (SDGs): SDG 7 ("clean and affordable energy"), SDG 8 ("decent work and economic growth"), SDG 9 ("innovation and infrastructure"), potentially SDG 11 ("sustainable cities and communities") and SDG 13 ("action to combat climate change and its impacts").