- PROPARCO and the IFC, are scaling up of renewable energy production in both Kenya and DRC.
- The two organisations will support Nuru, an early-stage company that provides decentralized and low-carbon power solutions in DRC.
- PROPARCO will invest in the first close of E3 Low Carbon Economy Fund I (LCEF), which based in Kenya.
Two renewable energy investments in the Democratic Republic of Congo (DRC) and Kenya will receive financial backing to enhance their low-carbon power solutions.
The move comes after PROPARCO and IFC announced plans to support scale up of renewable energy in the two countries. PROPARCO and IFC are members of the Alliance for Entrepreneurship in Africa.
The two organizations declared support for Nuru, an early-stage startup that offers decentralized and low-carbon electricity solutions in the DRC, during the Paris summit for a new global funding agreement.
“Our support for Nuru, delivered with partners through the Alliance for Entrepreneurship in Africa, will do exactly that by helping the company scale up its model to become an important player in the DRC’s power sector, benefitting thousands of households and businesses,” IFC Managing Director Makhtar Diop said.
At the same time, Kenya-based E3 Low Carbon Economy Fund I announced that PROPARCO had invested in its initial closing. The partnership assists early-stage businesses that require help growing.
Support for DRC-based Nuru
Proparco and IFC have announced their intention to participate in Nuru’s series B fundraising. The strategy will help Nuru develop new decentralized models for the distribution of sustainable, dependable, and low-carbon renewable energy. They are targeting cities where access to electricity is a significant barrier to economic and social development.
Nuru develops and operates commercially viable isolated solar-hybrid “metrogrids” (utility-scale urban mini-grids). The metrogrids provide reliable, affordable and clean energy in the Eastern region of the DRC.
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The startup completed its $4.3 million first fundraising round in December 2018, following which it constructed its Goma pilot project. This added 1.3 MWp capacity in 2020. Nuru seeks to have a significant, transformative impact in one of the world’s poorest nations.
Nuru’s projects in Goma, Kindu and Bunia
With a total installed capacity of 13.7 MWp, the current and only second institutional fundraise will give the company crucial financing. The capital will speed up the completion of at least three nationally strategic development projects in Goma, Kindu, and Bunia.
The “African Renewable Energy Scale-Up Facility” (ARE Scale Up facility), which is backed by the European Union to encourage private sector investment in on-grid and off-grid renewable energy production in Africa, is where Proparco intends to make its series B investment.
“Nuru is thrilled to have partners like PROPARCO and the IFC empowering us to deliver life-changing energy access. As an entrepreneur leading a business in the challenging phase of scaling, support from institutions like PROPARCO, the IFC and REPP and EAVF are key to help Nuru achieve its mission of delivering reliable, affordable, renewable energy to 5 million people in the DR Congo,” Nuru founder and CEO Jonathan Shaw said.
PROPARCO investment in Kenya
Additionally, PROPARCO disclosed its $6 million investment in the E3 Low Carbon Economy Fund I, a Nairobi, Kenya-based fund. The firm focuses on creative business owners who launch early-stage enterprises that provide low carbon, decentralized, and intelligent services in Africa.
The E3 Capital team behind this fund also managed the Energy Access Ventures Fund, which was a true innovator in off-grid renewable energy investments in Africa and supported Nuru from the beginning. EAVF has received investment from PROPARCO as well through its FISEA initiative.
The E3 Low Carbon Economy Fund for Africa’s first closure, which totaled $48 million, was announced last month by E3 Capital and the general partner, Cygnum Capital Group (formerly Lion’s Head Global Partners).
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To reach its final closure of up to $100 million within a year, the fund is looking for additional funding. It is wooing investors who can help young, inventive African entrepreneurs succeed in climate tech in Africa.
“We are proud to support Nuru and E3 LCEF, which are great examples of Proparco’s investments into early-stage companies that can be transformational for the continent but need financial assistance to scale up. Together with the other members of the Alliance, we are committed to promoting this type of project and we trust that we will be going even further in the months to come,” Proparpo’s CEO Françoise Lombard said.
