UK development finance institution British International Investment (BII) has committed $20-million to impact investment organisation Acumen’s Hardest-to-Reach (H2R) Initiative to help expand access to affordable, reliable and clean energy in frontier economies in Africa.

The initiative’s debt-focused vehicle H2R Amplify will provide financing to established offgrid solar companies in the most underserved countries in sub-Saharan Africa to accelerate energy access.

National electrification rates in these countries range from 12% to 59%.

With BII’s support, H2R Amplify is expected to reach more than 50-million individuals, including 40-million gaining first-time access to clean energy products. It is also expected to mitigate more than three-million tonnes of CO₂-equivalent by displacing highly polluting fuels such as kerosene.

The H2R initiative will offer impact-linked loans and receivables-backed financing to help solar companies manage working capital as they scale up.

H2R Amplify will invest in projects in Benin, Burkina Faso, Burundi, Chad, the Democratic Republic of Congo, Guinea, Guinea-Bissau, Lesotho, Liberia, Malawi, Mozambique, Niger, Sierra Leone, Somalia, Togo, Uganda and Zambia.

H2R Amplify has secured $123-million in commitments at first close, and is structured to attract commercial investment by offering risk protection and enhanced returns through a tiered blended financing model.

By offering this blend of financing, it delivers a scalable model that helps solar companies expand into and grow within lower-income countries that are currently underserved or overlooked by traditional investors, the development finance institution says.

Further, H2R Catalyse, which is the initiative’s patient capital arm, has raised $57-million since 2023, and is already investing in early-stage companies, BII adds.

“Being able to access reliable and affordable electricity transforms lives. The UK is working with African leaders, African entrepreneurs and the energy and finance communities to realise the goal of universal access by 2030,” says UK government special representative for climate Rachel Kyte.

“With the support of the UK and other donors Acumen’s Fund will extend clean power to more than 50-million people, thereby unlocking prosperity and driving forward the green energy transition across Africa,” she notes.

Nearly 600-million people in Africa lack access to energy, and BII is focused on investing in inclusive energy solutions to close this gap. This partnership reflects BII’s commitment to backing investments in the most challenging markets, where our capital can have the greatest impact, says BII Africa MD and head Chris Chijiutomi.

“Additionally, women bear the disproportionate burden of energy poverty and we are, therefore, pleased that H2R Amplify will aim to create economic opportunities for women through its offgrid solar investments,” he adds.

“The investment underscores BII’s commitment to addressing economic inequality and catalysing private sector growth in Africa’s most fragile and under-served regions which often struggle to attract commercial capital,” he says.

Its commitment is also demonstrated through the Africa Resilience Investment Accelerator, which is a platform created by BII to work with development partners to derisk investments and unlock opportunities in fragile and conflict-affected countries.

“By expanding access to clean energy for millions of households and businesses, this initiative holds the promise to provide resilience, agency and dignity, along with light and power.

“BII’s investment shows how public and private institutions can mobilise the right kind of capital to build markets that endure and unlock human potential,” says Acumen founder and CEO Jacqueline Novogratz.