Zafiri fund targets $1B valuation with $120M off-grid push in Africa

World Bank Group, through its private sector arm, International Finance Corporation (IFC), is backing a new Africa-focused energy platform, Zafiri, with up to $120 million in equity, anchoring an ambitious push aimed at scaling distributed renewable energy solutions across Sub-Saharan Africa and expanding electricity and clean cooking access to millions.

The Mauritius-domiciled vehicle is targeting an initial $300 million raise, with plans to expand toward a $1 billion valuation over the next decade, as it deploys long-term capital into distributed renewable energy companies across Sub-Saharan Africa, aiming to widen electricity and clean cooking access.

Driving energy access across Africa

Zafiri, with a target of reaching at least 30 million people over its lifespan, will focus on distributed renewable energy (DRE) systems, including off-grid and mini-grid solutions, which are increasingly seen as critical to closing Africa’s energy access gap, particularly in underserved and rural communities.

Following board approval in October 2025 and agreement signing in April 2026, Zafiri is moving toward initial disbursements, with capital deployment expected to begin once final conditions are met. The initiative aligns with IFC’s broader strategy to support clean energy transitions while addressing energy poverty across Sub-Saharan Africa.

In addition to electricity access, the platform will also invest in clean cooking solutions, a key component in reducing reliance on biomass fuels and improving health outcomes.

Fund structure and capital strategy

Zafiri is targeting an initial capitalization of $300 million, split evenly between senior and junior equity. The capital base is expected to be anchored by multilateral development banks, development finance institutions, and philanthropic investors.

Subject to performance, the vehicle could raise an additional $300 million from commercial investors, with a long-term ambition of reaching $1 billion in net asset value over a 10- to 15-year horizon.

IFC’s proposed investment will span both senior and junior equity tranches, reinforcing its role as a cornerstone investor to crowd in additional capital.

Blended finance to unlock scale

The project will also be supported by IFC’s Concessional Capital Window IDA21, which is expected to provide up to $70 million in concessional co-investment.

This blended finance component is designed to bridge funding gaps and de-risk investments, enabling the vehicle to attract further capital while supporting the scale-up of distributed energy solutions.

The concessional funding is estimated to represent about 12% of total project costs, reflecting the level of subsidy required to mobilize private investment into early-stage and high-impact energy markets.

Catalyzing private capital

IFC’s participation is expected to play a catalytic role in mobilizing additional funding from development partners, climate funds, and institutional investors, many of whom rely on anchor commitments to validate new investment platforms.

Beyond capital, IFC will provide technical support to ensure compliance with environmental and social standards, while also strengthening gender inclusion practices across the investment portfolio.

Expanding Africa’s clean energy ecosystem

With board approval secured in October 2025 and agreements signed in April 2026, the Zafiri platform is now advancing toward deployment, with disbursement pending.

As distributed renewable energy gains traction across Africa, platforms like Zafiri are emerging as critical vehicles for channeling long-term capital into scalable, high-impact solutions, positioning the continent for a more inclusive and sustainable energy future.