Camco has announced commitments of nearly $25m in equity and debt funding for Spark Energy Services (Spark), its innovative financing platform supporting energy efficiency and captive solar initiatives in Sub-Saharan Africa’s commercial and industrial (C&I) sector. 

Commitments have so far been made for the full equity allocation for Spark’s $50m targeted initial close, including $3m from UK government-funded FSDAi, $2.2m from Jaltech Fund Management and over $3m from Camco. 

EIB is the sole junior lender, having committed $10 million in junior debt, with Symbiotics Investments committing $5m in senior debt as part of a senior debt consortium expected to commit up to $30m by Q4 2023. 

Thomas Varela, Symbiotics Investments Senior Investment Analyst, Clean Energy, said: "This transaction exemplifies Symbiotics Investments' approach to clean energy investment, as we thrive to push capital where it usually doesn't flow. Our funding for Spark will bolster the expansion of local developers, typically SMEs, who often face challenges in accessing the necessary capital to scale their operations. This is particularly pertinent for energy efficiency projects backed by Spark—a segment that continues to be underfunded despite its significant potential for climate mitigation." 

Thomas Östros, European Investment Bank Vice President, added: “Ensuring that African industry and business can accelerate investment to cut energy bills, harness renewable energy and reduce carbon emissions is crucial for delivering climate action in Africa. As highlighted at the African Climate Summit this week, the European Investment Bank is pleased to support Spark’s visionary engagement that mobilises private capital to accelerate business-led climate investment.” 

Camco is now targeting the close of $50m by Q4 2023 and a subsequent close of at least $100m within two years.

Adam Fitzwilliam, Director of Spark, said: “With power demand from Sub-Saharan Africa’s C&I sector expected to double between 2020 and 2040, addressing the sector’s emissions growth is a climate imperative. At the same time, the sector is suffering from an expensive, unreliable and polluting power supply that is hampering growth, with limited access to finance meaning very few SMEs have the necessary upfront capital to invest in clean energy solutions. 

“Camco designed Spark to respond to these challenges and support green growth on the continent and today’s announcement is a clear demonstration of our investors’ confidence in the platform. We are thrilled to announce a strong set of partners despite a challenging broader investment climate.” 

The announcement by Camco comes after the UK government announced GBP 49m (~$62m) worth of new projects to fight climate change in Africa.

Andrew Mitchell, UK Minister for Development and Africa, said: “The climate finance projects we announced demonstrate the strength of our commitment to Africa’s green future. UK leadership is determined to unlock the funding needed internationally to drive forward the green agenda. Our ambitions can only be realised through partnership and cooperation with Africa and the international community. We are stronger together - and we go far when we go together.”