A $300 million loan agreement with Standard Bank South Africa, a subsidiary of Standard Bank Group, aims to unlock financing for renewable energy projects and support the construction of accessible housing units.

The loan comprises $260 million directly from the IFC and $40 million mobilized from commercial investors.

“This sustainable loan empowers Standard Bank to further assist clients in their environmental and social endeavors,” stated Kenny Fihla, Managing Director of Standard Bank Group’s Corporate and Investment Banking.

Standard Bank has a proven track record in supporting South Africa’s transition away from fossil fuels.

The bank recently collaborated with other financial institutions to secure $243 million for the construction of the Ummbila Emoyeni wind farm, a project crucial for reducing the country’s reliance on coal.

South Africa currently faces an energy crisis largely fueled by its dependence on coal, which represents roughly 80% of its electricity generation.

This dependence has led to power cuts as ageing coal-fired power plants struggle to meet demand.

The IFC’s loan will empower Standard Bank to utilize “green and social loans, sustainability-linked instruments, sustainable trade solutions, and impact investments” to promote renewable energy projects.

The loan also addresses South Africa’s significant housing deficit.

The Center for Affordable Housing Finance in Africa (CAHF) estimates a shortage of approximately 3.7 million units, with most demand concentrated in the low-income housing market.

While South Africa boasts a well-developed housing market compared to the sub-Saharan African average (16.3% mortgage penetration rate versus 5.1%), increasing access to mortgages for low-income earners could be a game-changer.

This collaboration between the IFC and Standard Bank presents a promising step forward for South Africa as it strives for a cleaner energy future and a more inclusive housing market.

The fund has reached a current total value of $64 million after its second and third closings.

Spark+ holds the distinction of being the first impact debt fund specifically designed to propel the clean cooking sector across sub-Saharan Africa.

The European Commission joined the initiative in July 2022 through a partnership with IFU, Denmark’s development finance institution (DFI) and a prior investor in the fund.

The US International Development Finance Corporation (DFC) followed suit in September 2023, investing in the senior debt tranche.

These four new investors join the twelve development finance institutions, foundations, family offices, and pension funds that participated in the fund’s initial closing of US$41 million in March 2022.

“We are honored to collaborate with such esteemed organizations dedicated to clean cooking solutions in Sub-Saharan Africa,” said Xavier Pierluca, Spark+ investment director and managing partner of EQ.

“Their contributions across all tranches of the Spark+ blended finance structure will be instrumental in accelerating the fund’s deployment strategy.”

This new funding strengthens Spark+ Africa Fund’s ability to support businesses offering clean and efficient cooking solutions throughout sub-Saharan Africa, ultimately contributing to improved health, environmental benefits, and economic development in the region.

The fund has reached a current total value of $64 million after its second and third closings.

Spark+ holds the distinction of being the first impact debt fund specifically designed to propel the clean cooking sector across sub-Saharan Africa.

The European Commission joined the initiative in July 2022 through a partnership with IFU, Denmark’s development finance institution (DFI) and a prior investor in the fund.

The US International Development Finance Corporation (DFC) followed suit in September 2023, investing in the senior debt tranche.

These four new investors join the twelve development finance institutions, foundations, family offices, and pension funds that participated in the fund’s initial closing of US$41 million in March 2022.

“We are honored to collaborate with such esteemed organizations dedicated to clean cooking solutions in Sub-Saharan Africa,” said Xavier Pierluca, Spark+ investment director and managing partner of EQ.

“Their contributions across all tranches of the Spark+ blended finance structure will be instrumental in accelerating the fund’s deployment strategy.”

This new funding strengthens Spark+ Africa Fund’s ability to support businesses offering clean and efficient cooking solutions throughout sub-Saharan Africa, ultimately contributing to improved health, environmental benefits, and economic development in the region.

Founded in 2019, OmniRetail focuses on building digital solutions for Africa’s vast informal retail sector.

Through its B2B platform, Omnibiz, and complementary tools like OmniPay and Mplify, the company equips small retailers with the resources they need to streamline product procurement, build credit, and optimize their businesses for growth.

OmniRetail has already onboarded over 140,000 retailers and 90 brands, solidifying its position as a key player in transforming the regional retail landscape.

Goodwell Investments, alongside long-term partner Alitheia Capital, provided the initial funding for the Series A round through its uMunthu II fund.

This investment marks a significant step for OmniRetail as it seeks to expand its reach and empower informal retailers across Africa.

“Africa urgently needs a robust digital infrastructure to support its thriving informal retail sector,” said Archit Bagaria, Head of Investments at OmniRetail.

“Informal retailers are the backbone of many African economies, and by providing them with the tools they need, we can ensure a more efficient distribution of essential goods, healthcare, and financial services.”

“We are excited to partner with Goodwell, a leading impact investor dedicated to supporting innovative businesses in emerging markets,” Bagaria added.

“This initial investment is a springboard for our journey to revolutionize retail across Africa through a comprehensive digital infrastructure platform.”