52282 - Facility for Energy Inclusion

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Summary of Investment Information

Project Number

52282

Company Name

FEI-Ongrid LP

Date SPI Disclosed

Apr 27, 2026

Country

Africa Region

Region

Africa

Projected Board Date

May 29, 2026

Environmental Category

FI-2 - Limited

Status

Pending Approval

Last Updated Date

Apr 28, 2026

Department

Regional Industry - INF Africa

Industry

other

Sector

Infrastructure Fund

Project Description

The Facility for Energy Inclusion (FEI and/or the Fund) is a pan-African structured debt fund dedicated to financing decentralized renewable energy (DRE) projects in Africa. The Fund has total assets under management (AUM) of c.US$361 million and has, to date, deployed c.US$482 million in DRE assets within 25 countries, supporting multiple enterprises and creating jobs across the continent. Building on this, the Fund is looking to upsize to US$750 million AUM to further its impact across the region and deliver on an expanded mandate to increase access to affordable energy through investments in solar home systems, in addition to existing investments in other DRE subsectors, including mini-grids, small to medium scale independent power producer projects, telecommunications energy servicing companies, and commercial & industrial (C&I) energy operators. This is aligned with the World Bank Group’s M300 initiative. IFC’s proposed investment is an equity investment of up to US$40 million in the upsized Fund, subject to the total own account exposure not exceeding 20% of total Fund size and IFC not being the largest investor (the Project).

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

The Project will provide access to affordable and quality electricity supply to C&I and residential customers in Sub-Saharan Africa by financing renewable energy solutions. Most of the high and medium probability pipeline is targeting investees with operations in multiple countries. The electricity sector in target markets faces significant challenges including very low access, comparably high costs, and low quality of service. The Fund will provide debt financing to DRE solutions covering a wide range of sectors and customers of varying scale, from residential, to SMEs, corporates, and utilities. The Project also supports renewable energy solutions displacing power supplied by more carbon intensive sources (e.g., diesel gensets, electricity grids, kerosine) and is expected to reduce GHG emissions.

FEI practices good international corporate governance and there are no significant residual corporate governance risks that could negatively affect the anticipated development impact of the Project.

IFC's additionality in this project is anticipated to be financial. This includes providing senior equity of up to US$40 million that is not readily available in the market to support a specialized DRE debt platform of this size and profile. IFC is expected to play an anchor role in mobilizing additional equity which will enable the Fund to reach target size, while continuing its investment in countries that face higher inherent risks at a reasonable price for the borrower.

Indicator	Metrics	Comments
Renewable Energy Installed Capacity	MW

E&S Category Rationale / Risks and Mitigation

The Project entails an investment of up to US$40 million in the Fund to support small-scale renewable energy projects in Africa. The Fund’s pipeline and portfolio include mini-grids, commercial and industrial projects, and energy services companies. The end-users’ sectors of activity include telecommunications, manufacturing, agriculture, and hospitality, among others. The expected E&S risks and impacts of the Project are considered medium. As such, the Project has been categorized as Category FI-2 in accordance with IFC's Sustainability Policy. The Project will not support coal-related activities or higher-risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant Occupational Health and Safety risks. The applicable E&S performance requirements for this Project include the IFC Exclusion List, relevant host country E&S laws and regulations, and the IFC Performance Standards. The key E&S risks and impacts derive from the Fund Manager's capacity to identify and manage the potential E&S risks associated with its financing activities. Typical risks and impacts include occupational health & safety, supply chain-related risks, labor and working conditions, and waste management, among others.

The Fund Manager has developed an E&S management system. The ESMS applies to the Fund's financing activities and has been integrated into the Fund's investment cycle. The E&S risk assessment process includes screening prospective transactions against the Fund's ESG Policy and Exclusion List, identification of ESG risks and initial project categorization, E&S due diligence assessment, development of mitigation measures to manage the E&S risks identified, inclusion of ESG clauses into the investment agreement, and continuous monitoring. The applicable E&S requirements include the FEI Exclusion List (in line with IFC's Exclusion List), national and local environmental, health, safety, and labor laws and regulations, and the IFC Performance Standards. Investment staff are required to undertake E&S risk management training, and the Fund Manager procures the services of third-party E&S consultants to support ESMS implementation. The Fund Manager has developed an external communication mechanism and has an internal process for handling grievances received. The E&S management system will need to be enhanced by developing: (1) solar supply chain screening provisions and (2) a framework to identify and assess contextual risks related to prospective investments.

S.no	Title	Anticipated Completion Date
1	ESMS update	12/27/2026

Contacts

For Inquiries About the Project, Contact

Cygnum Capital Group
Carmen de Castro
FEI Fund Lead, Cygnum Capital Group
+34669427951
carmen.decastro@cygnumcapital.com
Valley View Office Park, Tower A, 3rd Floor, City Park Drive, Nairobi, Kenya.
www.cygnumcapital.com

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