Helios raises $200m for Africa-focused climate fund

London — Helios Investment Partners has raised an initial $200m for climate mitigation and adaptation projects with the backing of Britain’s development bank, the European Investment Bank and other climate investors.

Other investors in the Helios Climate, Energy Access, and Resilience (CLEAR) Fund, which aims to raise $400m and become the largest Africa-focused climate fund, included the Dutch development bank, the partners said in a statement.

The fund will target companies in low-carbon energy; climate-smart agriculture and food; climate-friendly mobility and logistics; recycling and resource efficiency; and digital and financial climate “enablers”, they said.

Anneliese Dodds, UK minister for development, said the government was “determined to restore the UK’s reputation as a world leader on climate. We need to act now to avoid further environmental devastation that will fuel illegal migration, conflict, and famine across the world.”

“The UK-supported CLEAR Fund is a first of its kind to invest in mid-sized African companies seeking to avoid and reduce carbon emissions, helping people to become more resilient and to adapt to the climate crisis.”

Research commissioned by the UK’s Mobilising Institutional Capital Through Listed Product Structure programme, which aims to help drive sustainable development, shows Sub-Saharan Africa’s renewable energy market represents a potential investment opportunity of $193bn by 2031.

Yet the International Renewable Energy Agency estimates that Africa attracts only 3% of global energy investment, the statement reads.

“As the UK’s development finance institution, this investment also reinforces BII’s commitment to supporting Africa’s green transition,” said Christopher Chijiutomi, MD and head of Africa at British International Investment, the UK’s development institution.

Gilles Vaes, CEO at InfraCo Africa, which also invested, said it was “a watershed moment for African growth businesses — and the associated infrastructure — seeking to address the climate crisis”.

“CLEAR will unlock much-needed access to finance and exit routes for climate entrepreneurs while giving investors comfort that their investments will generate the growth they expect and support global efforts to address climate change.”

Reuters