Proposed distributed renewable energy investment vehicle Zafiri is targeting an initial capitalization of $300 million to scale off-grid and decentralized energy solutions across Sub-Saharan Africa, according to documents seen by DevFiNews.
The move higlights a shift toward blended and permanent capital structures in development finance.
International Finance Corporation (IFC), a member of the World Bank Group, plans to invest up to $120 million in the vehicle, spanning both senior and junior equity tranches, alongside up to $70 million in concessional capital from its IDA21-backed blended finance window to help crowd in additional investors.
In a disclosure, IFC said the vehicle, which will be domiciled in Mauritius, is structured as a permanent capital platform, allowing it to deploy patient equity into distributed renewable energy (DRE) companies without the constraints of traditional fund lifecycles.
Zafiri’s initial $300 million raise will be split evenly between senior and junior equity, with backing expected primarily from development finance institutions, multilateral lenders, and philanthropic investors, per the disclosure.
The platform may later raise additional capital from commercial investors, with a long-term ambition to scale toward $1 billion in net asset value.
The vehicle will invest in a range of DRE solutions including mini-grids, solar home systems, commercial and industrial solar, battery storage, and clean cooking technologies, targeting markets with significant energy access gaps such as Nigeria, the Democratic Republic of Congo, and Ethiopia.
Over its lifecycle, Zafiri aims to provide electricity and clean cooking access to at least 30 million people, while reducing reliance on diesel and other carbon-intensive energy sources.
The structure underscores a broader trend among development finance institutions toward using blended finance and flexible capital vehicles to address structural funding gaps in early-stage and fragmented sectors such as distributed energy.
IFC said its participation is expected to play a catalytic role in mobilizing additional capital, while also supporting environmental and social standards, including risk management systems and gender practices across investee companies.