The Energy Entrepreneurs Growth Fund (EEGF), an initiative of the UK-based Shell Foundation and Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO), recently closed a fundraising round at USD 125 million. EEGF is intended to increase access to renewable energy in off-grid communities in Sub-Saharan Africa through funding and operational support. Among its specialties is mezzanine loans, which are structured to accept higher levels of risk than standard loans. EEGF had raised USD 45 million in its initial funding round in 2019 and financed 11 firms as of August 2023. The fund is managed by Triple Jump, a Dutch investment manager, with advisory support from the Kenyan firm Persistent. EEGF’s funders include the multilateral African Development Bank and development finance institutions backed by various European and North American governments.
Launched in 1997, the Shell Foundation is a social investment initiative of the UK-based petroleum firm Royal Dutch Shell. The foundation promotes sustainable development through programs on four continents. Its projects range from helping entrepreneurs grow their businesses to tackling pollution in low- and middle-countries. As of 2022, the Shell Foundation reported USD 600 million in assets.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. FMO works toward the UN Sustainable Development Goals by funding capacity development and placing debt and equity investments in agribusiness, financial institutions and the energy sector. During the first half of 2023, FMO disbursed new investments totaling EUR 1.1 billion (USD 1.2 billion), resulting in a committed portfolio of EUR 13 billion (USD 14 billion).
By Pranav Agarwal, Research Associate
Sources and Additional Resources
Triple Jump press release on EEGF
https://triplejump.eu/the-energy-entrepreneurs-growth-fund-eegf-exceeds-target-successfully-closing-at-usd125m/
Triple Jump profile on EEGF
https://triplejump.eu/fund/energy-entrep-growth-fund/
FMO homepage
https://www.fmo.nl/
Persistent homepage
https://persistent.energy/
Shell Foundation homepage
https://shellfoundation.org/
Triple Jump homepage
https://triplejump.eu/
United Nations’ description of Sustainable Development Goal #7
https://sdgs.un.org/goals/goal7
Previous MicroCapital article on FMO
https://www.microcapital.org/microcapital-brief-fmo-committing-30m-to-south-asia-growth-fund-iii-to-support-equity-placements-in-businesses-reducing-environmental-impacts-mainly-in-india/
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