LeapFrog Pledges $500 Million Towards Advancing Climate Innovation in Africa
Dec 4, 2023
Enrich Africa
3 minute(s) Read
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LeapFrog Investments, an esteemed firm renowned for blending profitability with social impact, has secured a substantial investment of $500 million to drive its ambitious climate investment initiative across Africa and emerging Asia. This significant funding comes from Temasek and has garnered support from the European Investment Bank, pending final approval from its governing bodies.


In 2021, Temasek committed an impactful $500 million to LeapFrog, earmarking a portion for the firm’s forthcoming investment ventures, including a dedicated $100 million specifically allocated for its newly launched climate investment strategy. Considering their history of collaboration on impact investing in emerging markets, the European Investment Bank is contemplating its fifth investment with LeapFrog, pending further assessment.


The joint effort titled “Investor Roadmap for Inclusive Green Growth,” crafted by LeapFrog, Temasek, and the World Bank’s CGAP think tank, underscores the urgent need for addressing climate change in South Asia, Southeast Asia, and Africa, collectively accounting for 25% of global climate emissions. Without immediate action, this figure is projected to soar to 73% by 2050.


LeapFrog’s climate action strategy revolves around directing investments into businesses offering eco-friendly solutions and technologies tailored for emerging consumer markets. These include areas such as electric two-wheelers, rooftop solar services, and advanced farming practices in energy, transportation, construction, and agriculture sectors. The aim is to foster low-carbon and resilient growth, particularly in countries like India, Indonesia, and Kenya, as incomes rise.


Founder and CEO of LeapFrog, Dr Andy Kuper


Dr Andy Kuper, Founder and CEO of LeapFrog Investments, stressed the global significance of combating climate change, stating, “Climate change is a universal challenge, and global financial markets should reflect this reality.” He applauded the initial support from Temasek and the European Investment Bank for their foresight as long-term investors committed to comprehensive climate change solutions.


Benoit Valentin, leading Impact Investing at Temasek, expressed optimism about emerging markets, believing they hold the potential to leapfrog traditional technologies through the adoption of clean technology. Valentin highlighted the urgency to capitalize on green investment opportunities for a more sustainable and inclusive future.


Markus Berndt, Acting Managing Director of EIB Global, conveyed enthusiasm about the strategy’s goals to bolster the private sector and foster green transformation in sectors like transport, energy, and the environment across Asia and Africa.


LeapFrog’s climate team has already curated a substantial portfolio of green enterprises in Africa and emerging Asian regions, preparing to unveil their initial investments in these areas by 2024. Prior investment funds from LeapFrog have significantly propelled successful climate-focused companies, including Sun King, Africa’s leading pay-as-you-go solar financing entity.


READ ALSO -El-Rufai Proposes $100 Million Venture Capital Initiative for Private Sector Revival


This recent backing from Temasek and EIB marks a significant stride following LeapFrog’s announcement of the $500 million commitment to climate initiatives. The announcement was made four months ago during the US-UK Climate Mobilisation Forum, a prominent gathering that brought together influential global figures, including LeapFrog’s Dr Kuper, to address climate change in developing economies, fostering a shift towards a resilient, net-zero future.


LeapFrog Investments, renowned for its ‘profit with purpose’ ethos, operates in financial services and healthcare sectors, boasting four growth equity funds and two separate accounts. Its expansive portfolio spans investments across 30 countries, witnessing a remarkable 24% average annual revenue growth within its companies. These investments have made an essential impact, reaching 492 million people globally and offering vital services in healthcare, finance, and climate solutions to over 6% of the global population.

Dec 4, 2023
Enrich Africa
3 minute(s) Read
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LeapFrog
Andy Kuper
Benoit Valentin
Markus Berndt
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Investments

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