AFRICA – Nithio, a climate fintech platform, has secured US$10 million in funding for its investment vehicle, FAIR: the Facility for Adaptation, Inclusion, and Resilience, from FMO, the Dutch Entrepreneurial Development Bank.
FAIR serves as a financing mechanism for companies offering clean energy solutions to households and small enterprises across Africa.
FMO’s investment in FAIR is facilitated through the Access to Energy Fund (AEF), managed by FMO on behalf of the Dutch government’s Ministry of Foreign Affairs.
The AEF focuses on supporting private sector projects aimed at providing access to renewable energy in emerging markets and developing countries.
This funding infusion will empower Nithio to expand its financing initiatives for distributors of solar home systems and solar appliances catering to productive use, including lighting, communication, irrigation, and cooling systems for households and businesses.
Through its FAIR mechanism, Nithio, based in the United States, has already made 11 investments that have provided over 400,200 people with access to energy and 12,100 people with access to products for businesses, according to FMO.
Several impact investors, including the American Development Finance Corporation (DFC), the Investment Fund for Developing Countries (IFU), and the Shell Foundation, join FMO in supporting this facility.
This latest investment follows Nithio’s €10 million (US$10.83 million) funding secured last year from the Danish Investment Fund for Developing Countries (IFU).
With Africa being the least climate-resilient continent globally, grappling with extreme weather events such as rainfall, drought, and flooding affecting over 215 million people in the last decade, the need for enhanced energy access is paramount.
Solar-driven products, including lighting, communications, irrigation, and cooling, have showcased significant impact in bolstering resilience and improving the livelihoods of households and smallholder farmers.
Solar-driven solutions, such as water pumps, milling, and cooling, play a pivotal role in enhancing food production, storage facilities, water supplies, and subsequently reducing food insecurity and poverty.
Additionally, these products empower individuals to work longer hours and more productively, contributing to greater income stability.
Nithio stands as one among several climate-tech companies aiming to reshape the narrative in the African continent. In the preceding year, the Kenyan climate-tech startup KOKO successfully secured an undisclosed funding amount from Rand Merchant Bank (RMB).
Distinguished for its innovative approach, KOKO addresses the demand for charcoal by providing bioethanol cooking fuel to over 1.1 million homes.
This is accomplished through a sophisticated network of KOKO Fuel ATMs strategically positioned in numerous corner stores across urban Kenya.
The consequential carbon revenues generated are distributed among households, functioning as a non-governmental energy subsidy.
This inclusive strategy facilitates even the most economically disadvantaged households to transition to cleaner energy solutions.
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