Africa Frontier Capital secures IFC backing to expand off-grid solar

The International Finance Corporation (IFC) is considering a $30 million senior loan investment in a new financing platform led by Mauritius-based social impact-focused asset management company, African Frontier Capital (AFC), aimed at scaling off-grid solar access across Sub-Saharan Africa and mobilizing up to $125 million in total funding.

The proposed investment, disclosed under IFC’s Summary of Investment Information framework, targets a multi-originator warehouse facility designed to provide off-balance-sheet financing to distributed energy service companies (DESCOs) operating under the pay-as-you-go (PAYGo) model. The facility is expected to include up to $100 million in senior debt and $25 million in subordinated capital.

Unlocking capital for clean energy access
The warehouse facility will enable DESCOs to convert future customer payments into upfront liquidity, addressing a key financing bottleneck in the off-grid solar sector. By improving access to working capital, the platform is expected to accelerate the rollout of affordable solar solutions to low-income households and small businesses.

Since 2020, AFC, founded and led by Eric De Moudt, has deployed more than $400 million across similar facilities in Kenya, Tanzania, Nigeria, and other markets, positioning it as a key player in receivables-backed financing for energy access companies. The new platform is designed to scale that model across multiple African markets, expanding access to electricity while reducing reliance on polluting fuels.

Catalyzing private capital into PAYGo sector
IFC’s role as an anchor investor is expected to crowd in additional institutional funding while introducing a structured financing solution that remains largely unavailable to smaller PAYGo operators. The facility also aims to demonstrate the viability of securitizing receivables from off-grid solar customers, encouraging replication by private investors.

Beyond financing, IFC will provide advisory support and apply international environmental and social standards to strengthen AFC’s risk management systems. The project is classified as FI-2, reflecting moderate environmental and social risks tied to portfolio companies, including labor practices and operational oversight in remote markets.

Driving energy transition in underserved markets
Founded in 2010, AFC, an impact investment group, uses technology, data analytics and financial innovation to bring financial inclusion to people living off-grid at the bottom of the pyramid in Africa and globally. It currently provides receivable financing to pay-as-you-go (PAYGO) off-grid solar (OGS) companies.

The investment is expected to expand electricity access for underserved populations while supporting climate goals through increased adoption of off-grid solar technologies. By unlocking capital for energy access companies and strengthening market confidence, the facility could play a pivotal role in scaling Africa’s decentralized energy ecosystem.

With a projected board date of April 2026, the proposed transaction underscores IFC’s strategy of using blended finance and structured capital to accelerate clean energy adoption and deepen financial markets across emerging economies.