The E3 Low Carbon Economy Fund for Africa (E3LCEF), a fund by early-stage VC E3 Capital (formerly Energy Access Ventures), and emerging markets-focused investment bank Lion’s Head Global Partners, has hit the first close at $48.1 million.
The E3LCEF limited partners include FMO, the Dutch entrepreneurial development bank; Swedfund International AB, the Swedish development finance institution; Proparco, an AFD Group subsidiary and private sector development investor, and KfW, a development bank, in partnership with BMZ, the German ministry for economic cooperation and development.
The fund targets to close at $100 million, joining the growing list of funds backing startups in Africa’s climate tech sector. The fund will provide initial and follow-on funding to startups, such as solar providers and EV startups, supporting low carbon economies.
“African businesses are starting to emerge with clear product market-fit, and a strong commercial potential at the core within…