By David Arome
The future of clean energy in Africa is no longer just about switching on the lights; it is about turning energy into jobs, driving business growth, and unlocking new opportunities for millions. In a major boost for entrepreneurs across Kenya, Nigeria, and Ethiopia, 19 companies have secured US$1.5 million in funding to make income-generating solar technologies more affordable, helping thousands of small businesses expand operations, create employment, and accelerate Africa’s green economic transition.
Announced by CLASP during the Adaptation Investment Summit 2026 in Nairobi, Kenya, the funding is being provided through the Productive Use Financing Facility (PUFF). The initiative seeks to expand access to productive-use energy appliances that enable entrepreneurs and small businesses to increase productivity, create jobs, and strengthen local economies.
The latest round of funding targets the deployment of 3,800 productive-use equipment (PUE), with the potential to support more than 3,000 green jobs across the three participating countries.
The beneficiaries include:
- Five from Ethiopia – Awdi Negesti Special Purpose Machinery Manufacturing, Center for Applied Manufacturing Service & Engineering, Green Scene Energy PLC, Inter Ethiopia, Zicon Trading
- Six from Kenya – Agsol Limited, Epicenter Africa Limited, Plexus Energy Limited, Suncool Storage, SunCulture Kenya Limited, Sunspot Energy Kenya (Spark Possibilities)
- Eight from Nigeria – Asolar System Nigeria Limited, Ceesolar Energy Limited, Cloud Energy Photoelectric, Consistent Energy Ltd, D@ech Nig Ltd, Ecotutu, Sosai Renewable Energies, GreenPower Overseas Limited
While electricity access continues to improve across Africa through initiatives such as Mission 300, millions of entrepreneurs still lack access to the equipment needed to convert electricity into sustainable income. Solar-powered irrigation pumps, refrigeration systems, milling machines, and other productive-use appliances remain out of reach for many due to high upfront costs and the expense of operating inefficient equipment.
Through PUFF, an initiative managed by CLASP and supported by the Global Energy Alliance for People and Planet, the selected companies will receive financial support to reduce production costs and lower the purchase price of energy-efficient appliances. The goal is to make these technologies more accessible to farmers, entrepreneurs, and small businesses, enabling them to expand operations, increase incomes, and strengthen community livelihoods.
Commenting on the initiative, Emmanuel Aziebor, Senior Director for Africa at CLASP, said, “Africa’s economic future depends not just on expanding access to electricity but on ensuring that energy powers businesses, creates jobs, and improves livelihoods. The technologies already exist. The challenge is making them accessible to the entrepreneurs who need them most. Through PUFF, we are helping bridge that gap so more businesses can invest, grow, and drive local economic development.”
Despite its enormous potential, the productive-use appliance market currently serves less than one percent of Africa’s addressable market. According to CLASP, expanding access to these technologies could unlock nearly US$16 billion in annual income and create up to 50 million new jobs over the next decade.
Carol Koech, vice president for Africa at the Global Energy Alliance for People and Planet, stressed that “we understand that creating access to affordable capital is essential for accelerating the adoption of renewable energy technologies. Our goal is to empower African entrepreneurs with the tools to grow their businesses by aligning finance, technology, markets, and enabling policies that do this while accelerating more equitable energy transition across the region.”
William Mulehi, Senior Manager at CLASP, said lessons from previous rounds of the initiative demonstrate that demand for productive-use appliances already exists, with financing remaining the biggest obstacle.
According to William, “What we’ve learned through PUFF is that the market is ready. The next step is helping businesses overcome the upfront cost of investing in productive-use appliances. This second round of funding is designed to do exactly that, enabling the selected companies to adopt technologies that will enable them to reach more entrepreneurs and expand into new markets.”
The latest investment builds on PUFF’s successful first funding cycle between 2022 and 2024, during which US$2.7 million supported the sale of nearly 16,000 income-generating appliances across Africa, directly benefiting more than 53,000 people.
As Africa pushes towards a cleaner and more inclusive energy future, initiatives such as PUFF are increasingly demonstrating that renewable energy is not only an environmental solution but also a catalyst for entrepreneurship, job creation, and long-term economic development. By making productive-use technologies affordable for those who need them most, the programme is helping ensure that clean energy becomes a powerful driver of prosperity across the continent.
For more information about the Productive Use Financing Facility (PUFF), including its efforts to expand access to income-generating clean energy technologies across Africa, visit the Productive Use Financing Facility and CLASP.
