Now open for applications, the fund is actively seeking investment-ready infrastructure projects and growth companies developing scalable, climate-resilient water and sanitation solutions.

The fund prioritizes investments in Kenya and South Africa within Africa, with an additional focus on Brazil, India, Indonesia, Mexico, Peru, and the Philippines.

It aims to support projects that address critical water challenges exacerbated by climate change.

“Climate change is intensifying threats to health, productivity, and critical infrastructure, especially in regions already vulnerable to water stress,” stated Marlene Hormes, Chief Investment Officer at WaterEquity.

“This funding initiative will enable us to identify and support projects that leverage private sector investment to advance innovative and impactful water solutions. Our goal is to create sustainable water access, enhance community resilience, and foster long-term positive change in low-income communities across emerging markets.”

The Water & Climate Resilience Fund focuses on infrastructure projects and growth companies across the water value chain.

The fund targets equity and mezzanine investments, considering ticket sizes ranging from $2 million to $15 million. It prefers minority ownership stakes and has an investment horizon of five to seven years.

By mobilizing private investment in climate-resilient water infrastructure, WaterEquity aims to address global water challenges while driving sustainable development in vulnerable communities.

The initiative, spearheaded by the African Centre for Technology Studies (ACTS), aims to foster ethical AI development and strengthen international partnerships.

ACTS, a leading research organization known for driving sustainable development through science, technology, and innovation policies, is leading this groundbreaking collaboration between Kenya and the United Kingdom.

The fund focuses on advancing Kenya’s AI ecosystem by supporting projects that align with the country’s national AI strategy.

Target sectors include healthcare, agriculture, education, and public service delivery, with an emphasis on safety, ethics, equity, and inclusion.

Speaking at the fund’s launch, Ali Hussein Kassim, Board Chair at the Kenya ICT Action Network (KICTANet), highlighted the initiative’s twin objectives of policy alignment and institutional capacity building.

“Through this fund, our objective is clear: to strengthen UK-Kenya partnerships around AI to build Kenya’s AI ecosystem with a dual approach – policy and systems alignment on one hand, and institutional capacity building on the other,” Kassim stated.

The UK-Kenya AI Challenge Fund also prioritizes the development of ethical frameworks to ensure responsible innovation while empowering Kenyan institutions to enhance their AI expertise.

This dual focus aims to position Kenya as a leader in AI research and innovation across Africa.

Additionally, the fund is dedicated to addressing pressing societal challenges and fostering innovative, impactful solutions.

The initiative underscores the importance of inclusive growth and international collaboration.

The UK-Kenya AI Challenge Fund strengthens Kenya’s AI capabilities and serves as a model for sustainable AI development in Africa and beyond, paving the way for a future where technology benefits all sectors of society.

The funding aims to bolster Spouts’ mission of expanding clean water access across the region and enhancing its carbon credit program.

Spouts’ ceramic water filters are designed to provide an affordable and sustainable solution for safe drinking water.

The filters eliminate the need for boiling water, a widespread practice in Africa that relies heavily on firewood and charcoal, contributing to deforestation and carbon emissions.

“Incofin is proud to partner with Spouts, a team that has shown remarkable dedication to bringing safe drinking water to underserved communities,” said Wanjiru Waithaka, Incofin’s Regional Director for Africa.

“Through this collaboration, we aim to foster healthier and economically resilient communities. Our vision is a future where access to clean water is a universal right, empowering families to focus on education, livelihoods, and building brighter futures.”

Spouts CEO Daniel Yin expressed enthusiasm for the partnership, calling it a transformative milestone for the organization.

“Incofin’s investment is a pivotal moment for Spouts. It will allow us to double our reach in the next five years. We look forward to our collaboration as we enter this new phase of growth and impact,” he said.

Incofin ventured into the drinking water sector in 2023 and has been actively deploying its W2AF to support impactful initiatives.

This latest investment underscores the fund’s commitment to addressing water access challenges and promoting sustainable solutions in underserved regions.