Database / Climate Finance Database / Risk Structure / FP005
FP005
KawiSafi Ventures Fund
Country
Kenya; Rwanda
Region
Africa
Sector
Private
Approval Year
2015
risk_structure
3 rows
| risk_id | canonical_project_id | financing_component_id | risk_type | risk_bearer | risk_severity | mitigation_mechanism | mitigation_instrument_id | residual_risk_level |
|---|---|---|---|---|---|---|---|---|
| GCF_FP005_RISK_001 | GCF_FP005 | - | Technical and operational | KawiSafi Fund / Acumen (Fund Manager) | Medium (5.1-20% of project value) | Rigorous due diligence processes covering financial, operational, market and ESS issues. Strategic advice and resources including Board seats, co-investor identification, access to local expert networks, and targeted technical assistance programs (financial reserves for post-purchase servicing, training women as solar technicians, MIS and ESM system implementation, market research and impact measurement). | - | Medium |
| GCF_FP005_RISK_002 | GCF_FP005 | - | Technical and operational | KawiSafi Fund / Acumen (Fund Manager) | Medium (5.1-20% of project value) | Experienced local in-house legal team with strong relationships with global and local law firms providing guidance on deal execution and legal matters. Deal structuring to minimize legal challenges and risks. Fund registered in Mauritius for well-developed regulatory framework, favorable tax treaties, and investor familiarity. Assessment that capital control risk is relatively lower in Kenya, Rwanda and Uganda compared to other countries in the region. | - | Medium |
| GCF_FP005_RISK_003 | GCF_FP005 | - | Financial | KawiSafi Fund / Investors | Medium (5.1-20% of project value) | Investment structures reflective of market conditions including equity, debt instruments, and equity-like instruments with pre-determined liquidation dates. Dividends and warrants to capture ongoing upside and offset market unpredictability. Ongoing relationships with potential strategic acquirers and growth-stage investment firms. Currency-hedging strategies where available and affordable. Requirement for portfolio companies to have financial audits. Cap of 20% on non-USD/EUR denominated investments. Regional team to monitor changing market and company conditions. | - | Medium |
Field Evidence
Technical and operational
KawiSafi Fund / Acumen (Fund Manager)
Medium (5.1-20% of project value)
Rigorous due diligence processes covering financial, operational, market and ESS issues. Strategic advice and resources including Board seats, co-investor identification, access to local expert networks, and targeted technical assistance programs (financial reserves for post-purchase servicing, training women as solar technicians, MIS and ESM system implementation, market research and impact measurement).
Medium
Technical and operational
KawiSafi Fund / Acumen (Fund Manager)
Medium (5.1-20% of project value)
Experienced local in-house legal team with strong relationships with global and local law firms providing guidance on deal execution and legal matters. Deal structuring to minimize legal challenges and risks. Fund registered in Mauritius for well-developed regulatory framework, favorable tax treaties, and investor familiarity. Assessment that capital control risk is relatively lower in Kenya, Rwanda and Uganda compared to other countries in the region.
Medium
Financial
KawiSafi Fund / Investors
Medium (5.1-20% of project value)
Investment structures reflective of market conditions including equity, debt instruments, and equity-like instruments with pre-determined liquidation dates. Dividends and warrants to capture ongoing upside and offset market unpredictability. Ongoing relationships with potential strategic acquirers and growth-stage investment firms. Currency-hedging strategies where available and affordable. Requirement for portfolio companies to have financial audits. Cap of 20% on non-USD/EUR denominated investments. Regional team to monitor changing market and company conditions.
Medium