The IFC’s contribution, allocated to the senior tranche, aligns with its broader mission to promote sustainable development in areas grappling with severe energy poverty.

The H2R Fund, structured in three equity tranches—senior, mezzanine, and junior—each valued at $60 million, also includes a $20 million grant facility.

The fund’s goal is to electrify 72 million people over the next decade, while avoiding 5 million tonnes of CO2 emissions.

It focuses on financing off-grid solar companies across 16 countries with low electrification rates.

A key target of the fund is Pay-as-you-Go (PayGo) solar companies, which offer solar home systems to low-income households through affordable incremental payments.

This approach enables clean energy access in areas where traditional grid infrastructure is either too expensive or impractical.

One unique aspect of the fund is a grant that encourages solar providers to reduce interest rates for consumers by meeting specific performance indicators, such as the number of first-time electricity users reached.

This strategy ensures both financial sustainability and social impact by benefiting underserved communities.

Yellow Malawi, one of the companies supported by the H2R Fund, recently received a $2 million investment.

This blended-currency loan is expected to help the company expand its services to approximately 182,000 people. Acumen’s role in this initiative is part of its ongoing efforts to support off-grid solar enterprises and deploy patient capital to social ventures.

Acumen’s H2R Fund employs a blended finance model, combining commercial investments, concessional capital, and grants.

This model mobilizes diverse capital sources to address energy poverty, support sustainable business growth, and contribute to global climate goals.