Nithio, an investor in solar energy in Africa, has secured a $3 million investment from the Schmidt Family Foundation to its investment vehicle, Nithio FI.
In a statement released from the firm, it plans to use the fund to expand access to renewable energy products for over 17,000 households.
Nithio noted that from the investment more than 77,000 individuals will benefit and over 6,000 people will undertake more economic activity. Over 2,400 people will be able to use products to support enterprises, more than $3.4m cumulative additional income will be generated, and over 17,800 metric tons of carbon dioxide will be avoided.
The investment will enable Nithio to continue to scale its lending as the team plans to invest $170m by 2025 and $1 billion by 2030.
The Schmidt Family Foundation joins other investors in Nithio FI, including US Development Finance Corporation, FSD Africa Investments, EDFI-ElectriFI, and Shell Foundation.
Commenting on the investment, portfolio director of the impact investing programme at the Schmidt Family Foundation, Aaron Mbati, said: “We are proud to contribute to Nithio FI to scale clean, affordable and sustainable energy access in Africa.”
The investment into Nithio FI demonstrates the Schmidt Family Foundation’s commitment to scaling clean energy access across Africa and its focus on improving climate mitigation, adaptation, and resilience. Currently, the African continent only receives 3 per cent of global climate finance flows, despite the region being the least climate resilient in the world.
Nithio Co-Founder and CEO, Kate Steel, said: “We look forward to expanding our lending with the foundation’s support and building climate resilience through increased energy access.”
