Shell Foundation and Accion announce new programme to finance and scale emission-reducing technologies in emerging markets
The Climate and Finance Innovations (ClimaFii) Alliance seeks to bring financing and sustainable energy solutions to microenterprises across India and sub-Saharan Africa
WASHINGTON, DC, JANUARY 21, 2025 – UK charity Shell Foundation, and global nonprofit Accion, together with BFA Global and Upaya Social Ventures, today announced a new programme to accelerate the adoption of clean energy solutions in low-income communities in India and sub-Saharan Africa. The Climate and Finance Innovations (ClimaFii) Alliance will provide catalytic support to climate enterprises and financial service providers to bridge the gap between energy access and financial inclusion for microenterprises across India and Sub-Saharan Africa.
Micro, small, and medium enterprises (MSMEs) are responsible for 80% of the jobs in Africa1 and make up 62% of employment in India2 but face a financing gap of over $5 trillion3. MSMEs’ lack of credit history and perceived risk make it difficult for them to secure funds for essential tools, inventory management, and the adoption of emission-reducing technologies that could enhance their productivity, boost their income, and strengthen their resilience to climate shocks.
The programme will follow an innovative approach that combines venture building and financial product design with the goal of making climate technologies more accessible to microentrepreneurs. BFA Global and Upaya Social Ventures will support climate enterprises in sub-Saharan Africa and India, respectively, to design and develop emission-reducing technologies specifically to benefit microentrepreneurs in these markets. These technologies will be determined by local needs and could include solar-powered processing solutions for smallholder farmers, electric vehicles and cooling systems for delivery drivers, clean cooking solutions for restaurant owners, and recycling tools for garment manufacturers.
Accion will work with financial service providers to design affordable financial products that enable micro-entrepreneurs to access these climate solutions.
Shell Foundation is supporting the ClimaFii Alliance as part of its charitable mission to increase incomes while cutting emissions for millions of people across sub-Saharan Africa and South Asia. Shell Foundation’s support is co-funded with UK aid from the UK government through its Transforming Energy Access platform.
Jonathan Berman, CEO at Shell Foundation, said: “Serving microentrepreneurs with clean energy raises incomes while cutting emissions. This is Shell Foundation’s charitable mission. We are proud to partner with Accion, a world leader in inclusive finance, to create the Climate and Finance Innovations (ClimaFii) Alliance. By partnering with proven performers such as Accion, BFA Global, and Upaya Social Ventures, we scale solutions quicker and help millions of people escape poverty.”
“Small business owners in emerging economies are already heavily impacted by climate change and unable to afford emission-reducing technologies. We are excited to partner with the Shell Foundation to launch the Climate and Finance Innovations (ClimaFii) Alliance. Through the Alliance, we aim to make affordable financing for clean technologies available to small businesses around the world, helping improve their productivity and the quality of life in their communities.”
Michael Schlein, President and CEO of Accion
About Accion: Accion is a global nonprofit on a mission to create a fair and inclusive economy for the nearly two billion people who are failed by the global financial system. We develop and scale responsible digital financial solutions for small business owners, smallholder farmers, and women, so they can make informed decisions and improve their lives. Through targeted investment strategies, advisory solutions, and expert thought leadership, we work with local partners to develop and scale cheaper, more accessible, and customer-friendly financial solutions. Since 1961, Accion has helped build 267 financial service providers serving low-income clients in 75 countries, reaching 440 million people. More at https://www.accion.org.
About Shell Foundation: Shell Foundation is an endowed, UK-registered charity that catalyzes clean energy innovation and unlocks inclusive investments in Africa and India, empowering millions of underserved customers to increase their incomes while cutting emissions. To achieve its charitable mission, Shell Foundation supports early-stage innovation and then partners with finance and corporate organizations to accelerate scale. More at https://shellfoundation.org/
About BFA Global: BFA Global is an impact innovation firm that combines research, advisory, venture building, and investment expertise to build a more inclusive, equitable, and resilient future for underserved people and the planet. We partner with leading public, private and philanthropic organizations, global and local, to catalyze innovation ecosystems for impact across emerging markets.
About Upaya Social Ventures: Upaya Social Ventures is a nonprofit organization building an inclusive economy by providing investment and support to early-stage businesses creating dignified jobs for people living in the most extreme poverty. Upaya’s award-winning, impact-first model seeks out and supports oft-overlooked companies creating work that is safe, stable, inclusive, and rewarding — generating a transformative impact on families, communities, and economies. Since its founding in 2011, Upaya’s portfolio companies have created over 44,000 dignified jobs across India. Please visit upayasv.org for more information.
Notes:
3. IFC