More African energy access start-ups set to unlock finance through expansion of GET.invest support
GET.invest is rolling out their Finance Readiness Support service to a new and larger cohort of early-stage African energy access companies, following the successful completion of a two-year pilot in December 2023. Energy 4 Impact is one of eight market-leading consultancies that will provide in-depth business development and financing advice to start-ups on their capital-raising journey. The roll-out phase of this programme will build upon the success of the pilot, which saw close to a quarter of the 34 participating companies reach financial close, raising a total expected investment volume of €10.3 million.
The GET.invest Finance Readiness Support was born out of the need to bridge the financing gap for locally-owned and managed energy access companies, particularly in sub-Saharan Africa. These companies often face distinct challenges in accessing funding due to their small size, limited track record, and specific financing requirements. However, the success of these businesses is crucial: they are well placed to serve last-mile energy customers and have a high potential for job creation and economic transformation in the countries where they operate. The GET.invest Finance Readiness Support is dedicated to helping such companies get ready for their first formal investment.
Four African energy access start-ups secured funding to grow their business or started discussions with financiers, thanks to advice from Energy 4 Impact during the pilot. These included Nigeria-based solar mini-grid developer Ventura Logistics, which secured a six-figure loan, and East-African e-mobility company Drive Electric, currently in advanced negotiations with a clean energy financing facility. The other companies supported by Energy 4 Impact were Beninois solar supplier BM Solutions and Rwandan energy services company EcoGreen Solutions.
Peter Weston, Managing Director of Energy 4 Impact, says:
Access to clean, reliable and affordable energy is vital for low-income rural communities, and local energy companies are well-positioned to deliver it. For this to become a reality, however, these promising new African start-ups must first secure the financing they need to fuel their growth. We are committed to continuing providing hands-on mentoring to help them to reach their investment targets more quickly.
Early-stage energy access companies interested in receiving business development advisory and coaching along their fundraising journey are invited to submit their proposal by 30 April 2024. Click here to learn about eligibility criteria and the application process.
About GET.invest Finance Readiness Support
The GET.invest Finance Readiness Support, a service of the European programme GET.invest, enables locally-owned and managed clean energy businesses to access finance. Launched in 2021, the service provides early-stage, micro, small and medium-sized energy companies in sub-Saharan Africa, the Caribbean and the Pacific with hands-on, in-depth business development support and coaching along their finance access journey.
The service is implemented by eight leading advisory firms – Advance Consulting, Catalyst Energy Advisors, Energy 4 Impact, GFA Consulting Group & I&P Conseil, GreenMaxCapital Group, Inensus, Open Capital and Persistent – as part of GET.invest, a programme supported by the European Union, Germany, Norway, the Netherlands, Sweden, and Austria.