Quick Read:
- The initiative will deploy innovative financing to off-grid solar companies serving households and businesses across 17 frontier economies in Africa.
- BII’s investment in the initiative’s debt-focussed vehicle, H2R Amplify, will improve energy access for more than 50 million people and mitigate over 3 million tonnes of CO₂e.
- It qualifies under the 2X Challenge with the commitment to promote gender equality in the energy sector and expand economic opportunities for women as consumers and employees.
British International Investment (BII), the UK’s development finance institution and impact investor, has announced a $20 million commitment to Acumen’s Hardest-to-Reach (H2R) Initiative.
Through the initiative’s debt-focussed vehicle, H2R Amplify, our investment will help expand access to affordable, reliable, and clean energy in frontier economies in Africa – where nearly 600 million people still lack access to electricity and women bear the disproportionate burden of energy poverty.
As part of H2R’s dual-vehicle structure, H2R Amplify will deploy innovative financing to established off-grid solar companies in the most underserved countries in sub-Saharan Africa, accelerating energy access where national electrification rates range from just 59 to as low as 12 per cent.
It will offer impact-linked loans and receivables backed financing to help solar companies manage working capital as they scale.
H2R Catalyze, the initiative’s patient capital arm, has raised $57 million since 2023 and is already investing in early-stage companies.
H2R Amplify, which was originally developed by Acumen with UK research and innovation support via the Transforming Energy Access (TEA) platform, has now has secured $123 million in commitments at first close.
It is structured to attract commercial investment by offering risk protection and enhanced returns through a tiered blended financing model.
By offering this blend of financing, it delivers a scalable model that helps solar companies expand into and grow within lower-income countries that are currently underserved or overlooked by traditional investors.
With BII’s support, H2R Amplify is expected to reach more than 50 million individuals, including 40 million gaining first-time access to clean energy products.
It is also expected to mitigate over 3 million tonnes of CO₂e by displacing highly polluting fuels such as kerosene.
H2R Amplify is 2X Challenge-qualified, reflecting a strong commitment to advancing gender equality including through increased opportunities for women customers and employees in the off-grid solar sector.
Acumen will further support this commitment through Gender Action Plans at portfolio companies and gender-focused technical assistance, to help improve gender inclusive practices and the collection of gender data to track progress.
This investment underscores BII’s commitment to addressing economic inequality and catalysing private sector growth in Africa’s most fragile and underserved regions which often struggle to attract commercial capital.
This is further demonstrated through the Africa Resilience Investment Accelerator (ARIA), a platform created by BII to work with development partners to de-risk investments and unlock opportunities in fragile and conflict-affected countries.
Rachel Kyte, UK special representative for Climate said:
“Being able to access reliable and affordable electricity transforms lives. The UK is working with African leaders, African entrepreneurs, and the energy and finance communities to realise the goal of universal access by 2030. With the support of the UK and other donors Acumen’s Fund will extend clean power to more than 50 million people – unlocking prosperity and driving forward the green energy transition across Africa.”
Chris Chijiutomi, MD and head of Africa at BII, commented:
“With nearly 600 million people in Africa still lacking access to energy, we’re focussed on investing in inclusive energy solutions, to close this gap. This partnership reflects BII’s commitment to backing investments in the most challenging markets, where our capital can have the greatest impact. We also recognise that women bear the disproportionate burden of energy poverty and so we’re pleased that H2R Amplify will seek to create economic opportunities for women through its off-grid solar investments.”
Jacqueline Novogratz, founder and CEO of Acumen, added:
“BII’s partnership reflects a shared commitment to solving energy poverty in the hardest-to-reach markets. By expanding access to clean energy for millions of households and businesses, this initiative holds the promise to provide resilience, agency and dignity, along with light and power. BII’s investment shows how public and private institutions can mobilise the right kind of capital to build markets that endure and unlock human potential.”
H2R Amplify will invest in projects in Benin, Burkina Faso, Burundi, Chad, the Democratic Republic of Congo, Guinea, Guinea-Bissau, Lesotho, Liberia, Malawi, Mozambique, Niger, Sierra Leone, Somalia, Togo, Uganda and Zambia.
