InfraCo Africa and Helios have recently formed a new investment entity named “Clear,” which will focus on clean energy and energy transition, transportation, green mobility, sustainable growth, and consumption. On the African continent, there are several sectors that are at the core of climate challenges.
The ultimate goal is to finance climate-aligned infrastructure and enterprises while working toward UN-mandated development goals (SDGs). The finance facility, which has a $350 million portfolio, will focus on certain areas such as clean energy, transportation and green mobility, and sustainable growth and consumption.
The project will invest in long-term infrastructure and enterprises that will create 100,000 jobs and give one million people on the African continent access to power. The vehicle is anticipated to save 100 million tons of carbon pollution.
According to the company’s shareholders, the new investment entity will allow project developers to recycle their development finance while simultaneously accelerating Africans’ access to clean and inclusive infrastructure.
The introduction of this new investment vehicle, according to InfraCo Africa CEO Gilles Vaes, will reduce the infrastructure and productivity gap in Africa, benefiting populations susceptible to the effects of climate change.
InfraCo Africa has guided eighteen projects to financial completion since its inception in 2004. Based on these accomplishments, the Private Infrastructure Development Group (PIDG) has partnered with Helios Investment Partners to investigate market issues and solutions for funding climate-smart infrastructure in Africa’s emerging economies.
More than 600 million Africans do not have access to electricity, and approximately 900 million do not have access to clean cooking fuel. With the arrival of the Covid-19 pandemic in 2020, for example, energy investments in Africa have plummeted by 32%.
In light of this, the International Renewable Energy Agency (IRENA) has called for increased renewable energy investment. The Clear investment vehicle’s goal is to achieve this. Its future investments will help Africa achieve energy security and promote the green economy. InfraCo Africa and Helios have created a method to promote mobility and sustainable consumption.