Investors Energy Access Ventures (EAV) and Lion's Head Global Partners have joined hands to launch a new fund. The fund will invest in climate-efficient businesses in Africa, according to a report in Afrik21. The fund recently launched by the two companies is called E3 Low Carbon Economy Fund I. It is the successor to the EAV fund, which has a track record of investing in early-stage renewable energy and energy efficiency companies in Africa. Billed as a venture capital fund, E3 Low Carbon Economy Fund I will invest in next-generation, climate-smart companies in transition to the green economy in Africa.

E3 (Enabling Emerging Entrepreneurs) will provide seed capital to promising companies providing carbon neutral solutions. The fund will leverage the experience of its partners in investing in Africa. With 60 professionals deployed across its global offices, Lion’s Head manages approximately $600 million in assets across four African credit funds focused on renewable energy, decarbonisation and capital markets as per the report.

For its part, EAV has a 40-year track record of investing in early-stage companies in Africa. “EAV has built a strong portfolio on the continent in new industries and has extensive experience working with early-stage companies to take them to the next level,” Clemens Calice, Lion’s Head’s co-CEO was quoted as saying.