The Helios Climate, Energy Access, and Resilience (CLEAR) Fund has successfully raised $200 million in its initial funding phase, thanks to catalytic support from the United Kingdom. This significant financial backing aims to bolster African enterprises dedicated to climate mitigation and adaptation efforts.
Helios Investment Partners, the fund’s manager, is steering the CLEAR Fund towards becoming the largest climate-focused investment fund on the African continent, with a target size of $400 million. The fund’s mission is to empower African climate innovators, focusing on five critical sectors: green energy solutions, climate-smart agriculture and food, green mobility and logistics, recycling and resource efficiency, and digital and financial climate enablers.
Research by MOBILIST reveals that the renewable energy market in sub-Saharan Africa represents a staggering $193 billion investment opportunity by 2031. Despite this potential, the International Renewable Energy Agency notes that Africa currently attracts a mere three per cent of global energy investment.
UK Minister for Development, Anneliese Dodds, emphasized the urgency of climate action, stating, “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.”
Gilles Vaes, CEO at InfraCo Africa (PIDG), highlighted the significance of this funding milestone, saying, “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.”
Vaes added that the CLEAR Fund will facilitate essential financial access and exit routes for climate entrepreneurs, providing investors with confidence that their investments will yield expected growth and support global climate change efforts, aligned with PIDG’s 2023 strategy.
Christopher Chijiutomi, Managing Director and Head of Africa at BII, expressed enthusiasm for the partnership, saying, “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 reinforces BII’s commitment to supporting Africa’s green transition.”
Ross Ferguson, leader of the MOBILIST programme at the FCDO, underscored the critical need to bridge Africa’s climate financing gap. He stated, “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. 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.”
This initial funding success marks a promising step towards fostering sustainable development and climate resilience across Africa, leveraging both public and private sector collaboration.