Acumen Unveils $90M Fund to Power Africa’s Climate Innovation

Written By: Flipbz.org

In a bold move to combat climate change and foster sustainable growth, global impact investment firm Acumen has launched its second KawiSafi Fund, a $90 million initiative aimed at transforming Africa’s climate-tech landscape. With $40 million already committed, the fund is set to empower innovative startups focused on clean energy, sustainable transport, and carbon financing, targeting a profound impact on 50 million lives and the prevention of 50 million tons of carbon emissions.

Building on the success of its predecessor, a $67 million clean energy fund launched in 2016, KawiSafi Fund II is designed to support African entrepreneurs driving scalable, low-carbon solutions. The fund prioritizes renewable energy systems to bring clean power to underserved communities, resilient transport solutions to navigate climate and economic challenges, and affordable cooking alternatives to reduce environmental harm. It also aims to unlock new opportunities in carbon markets, fostering economic resilience across the continent.

“Africa’s climate-tech sector is brimming with potential, and Fund II allows us to back visionary entrepreneurs who can turn challenges into opportunities,” said Aman Inamdar, Managing Director of KawiSafi Ventures. “By combining equity with strategic partnerships, we’re building an ecosystem that enables these businesses to scale, professionalize, and showcase Africa’s climate solutions on a global stage.”

The fund has already made waves, co-leading an $11 million Series A round for Koolboks, a cleantech startup developing solar-powered freezers for African businesses. This investment reflects KawiSafi’s commitment to supporting practical, high-impact innovations. As of Q3 2024, the first KawiSafi fund had already touched 213 million lives and averted 45 million tons of carbon emissions, setting a strong foundation for Fund II’s ambitious goals.

Backed by major players like the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), the Green Climate Fund, the Schmidt Family Foundation, and the Quadrature Climate Foundation, KawiSafi Fund II leverages a blended finance model to attract private capital. This approach mitigates early-stage risks, encouraging broader investment in Africa’s climate solutions. João Duarte Cunha, Head of Division at the African Development Bank, emphasized the fund’s significance: “KawiSafi arrives at a pivotal moment, delivering critical capital to businesses advancing energy access and a low-carbon future.”

Despite Africa’s vulnerability to climate change—contributing just 4% of global emissions but facing severe impacts—the continent receives only 3% of global climate finance. KawiSafi Fund II signals a shift, positioning Africa as a hub for climate innovation. With rising investor interest in the region’s climate-tech sector, which captured 21% of funding in the first half of 2025, Acumen’s initiative is poised to drive systemic change, proving that sustainable business models can deliver both impact and returns.