In a significant boost for Africa’s clean energy transition and climate resilience, nineteen companies across Kenya, Nigeria and Ethiopia have secured US$1.5 million in funding to expand access to productive-use solar technologies that will help thousands of small businesses reduce energy costs, create jobs and strengthen local economies.
The funding, announced by CLASP during the Adaptation Investment Summit 2026, is being provided through the Productive Use Financing Facility (PUFF). The initiative is expected to support the deployment of about 3,800 productive-use energy appliances while creating more than 3,000 green jobs across the three countries.
The beneficiaries include five companies from Ethiopia, six from Kenya and eight from Nigeria, reflecting growing investments in locally driven clean energy solutions capable of accelerating economic development while advancing climate action.
Beyond expanding electricity access, the initiative focuses on helping entrepreneurs transform clean energy into productive economic opportunities through solar-powered water pumps, refrigeration systems, milling equipment and other income-generating technologies. These appliances enable farmers and small businesses to improve productivity while reducing dependence on fossil fuel-powered alternatives.
Speaking on the significance of the initiative, Emmanuel Aziebor, Senior Director for Africa at CLASP, said Africa’s energy transition must go beyond connecting people to electricity and ensure that energy powers businesses, creates jobs and improves livelihoods.
“Africa’s economic future depends not just on expanding access to electricity, but on ensuring that energy powers businesses, creates jobs, and improves livelihoods,” Aziebor said.
He added that while the technologies already exist, affordability remains the biggest obstacle for many entrepreneurs. According to him, the PUFF initiative is helping bridge that financing gap, enabling more businesses to invest, expand and contribute to local economic development.
The funding is supported by the Global Energy Alliance for People and Planet (GEAPP), which said improving access to affordable financing is essential for accelerating the adoption of renewable energy technologies across Africa.
Vice President for Africa at GEAPP, Carol Koech, said the alliance is working to empower African entrepreneurs by aligning finance, technology, markets and enabling policies to support a more equitable clean energy transition.
“Our goal is to empower African entrepreneurs with the tools to grow their businesses while accelerating a more equitable energy transition across the region,” she said.
Also highlighting the programme’s impact, William Mulehi, Senior Manager at CLASP, noted that demand for productive-use appliances continues to grow across Africa, but many businesses remain constrained by high upfront investment costs.
“The market is ready,” Mulehi said, explaining that the second round of PUFF funding is designed to help companies overcome these barriers, adopt productive-use technologies and expand into new markets.
According to CLASP, productive-use appliances currently serve less than one per cent of Africa’s addressable market. Closing this gap could unlock nearly US$16 billion in annual income opportunities and generate as many as 50 million jobs over the next decade.
The organisation noted that the programme has already demonstrated measurable impact. Between 2022 and 2024, the first phase of PUFF invested US$2.7 million, supporting the distribution of nearly 16,000 productive-use appliances that directly benefited more than 53,000 people across Africa.
As African countries continue to pursue climate-resilient development pathways, initiatives such as PUFF demonstrate how clean energy investments can simultaneously advance economic inclusion, strengthen livelihoods and support the continent’s transition to a low-carbon future.
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