Deal Street

African Startup Funding Tracker


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Low Carbon Economy Fund For Africa Hits First Close At USD 48 M
Low Carbon Economy Fund For Africa Hits First Close At USD 48 M

The E3 Low Carbon Economy Fund for Africa (E3LCEF), a fund by early-stage VC E3 Capital (formerly Energy Access Ventures), and emerging markets-focused investment bank Lion’s Head Global Partners, has hit the first close at USD 48.1 M. The E3LCEF limited partners include FMO, the Dutch entrepreneurial development bank; Swedfund International AB, the Swedish development finance institution; Proparco, an AFD Group subsidiary and private sector development investor; and KfW, a development bank, in partnership with BMZ, the German ministry for economic cooperation and development. The fund aims to provide initial and follow-on funding to startups, such as solar providers and EV startups, supporting low-carbon economies.

E3 Capital, an active investor in Africa, currently manages the €75 million (USD 80.9 M) Energy Access Ventures Fund I (EAVFI), which has made 15 investments in decentralized energy businesses in East, West and Southern Africa. Asset manager Lion’s Head has USD 700 M under its portfolio, and has a subsidiary that provides corporate finance advisory services to governments, multilaterals and private companies.