Helios Investment Partners, a leading Africa-focused private equity firm, has announced the first close of its Helios Climate, Energy Access, and Resilience (CLEAR) Fund, securing $200 million in initial commitments. The fund aims to raise a total of $400 million, making it potentially the largest dedicated climate fund for the African continent.
The CLEAR Fund has garnered support from prominent development finance institutions and climate investors, including British International Investment (BII), the European Investment Bank (EIB), the Dutch development bank FMO, and InfraCo Africa, among others. The fund’s focus is on investing in companies that contribute to climate change mitigation and adaptation across various sectors in Africa.
Key investment areas for the CLEAR Fund include:
- Low-carbon energy: Supporting the transition to renewable energy sources and energy-efficient technologies.
- Climate-smart agriculture and food: Promoting sustainable farming practices and resilient food systems.
- Climate-friendly mobility and logistics: Investing in cleaner transportation and logistics solutions.
- Recycling and resource efficiency: Backing circular economy initiatives and sustainable resource management.
- Digital and financial climate enablers: Supporting innovative technologies and financial solutions that drive climate action.
This investment initiative comes at a crucial time for Africa, as the continent faces growing challenges due to climate change. Research suggests that sub-Saharan Africa’s renewable energy market alone presents a $193 billion investment opportunity by 2031. However, the region currently attracts only a small fraction of global energy investment.
The CLEAR Fund aims to bridge this gap by providing much-needed capital to African businesses working on climate solutions. This not only fosters sustainable economic growth but also supports global efforts to address the climate crisis.
Christopher Chijiutomi, Managing Director and Head of Africa at BII, highlighted the UK’s commitment to Africa’s green transition through this investment. Gilles Vaes, CEO of InfraCo Africa, emphasized the fund’s role in unlocking finance for climate entrepreneurs and supporting climate-resilient infrastructure development.
The UK government, through its Mobilising Institutional Capital Through Listed Product Structure (MOBILIST) program, played a pivotal role in mobilizing support for the CLEAR Fund. The program aims to catalyze private investment in sustainable development projects.
The establishment of the Helios Climate, Energy Access, and Resilience (CLEAR) Fund marks a significant step forward in addressing climate change in Africa. By channeling investments into innovative climate solutions, the fund has the potential to create a more sustainable and resilient future for the continent.