Germany, US Pledge $50M for Africa’s Green Energy

by Victor Adetimilehin

Germany and the United States have announced new funding contributions of $50 million to the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), a climate finance facility that supports renewable energy and energy efficiency projects across the continent.

The pledges were made at a high-level event organised by SEFA during the Africa Climate Summit held in Nairobi, Kenya. The event highlighted SEFA’s role in catalysing climate action in the energy sector and accelerating Africa’s just energy transition.

Germany, SEFA’s largest donor, committed an additional EUR 40 million ($47 million) to the fund, citing its positive experience working with SEFA and its strong support for climate action in Africa. “With SEFA, the African Development Bank is demonstrating its commitment to seizing the opportunities presented by the energy transition and renewable energy deployment,” said Dr. Bärbel Kofler, Parliamentary State Secretary in the German Federal Ministry for Economic Cooperation and Development (BMZ).

USAID Power Africa, a long-standing partner of SEFA, reaffirmed its support with a new contribution of $6.2 million. “Power Africa’s additional contribution to the Fund underscores the high value and impact of our partnership with the AfDB and SEFA. Together, we are supporting Africa’s low-carbon and climate-resilient development through clean energy solutions that make a real difference in people’s lives across the continent,” said David Thompson, USAID Power Africa Acting Coordinator.

SEFA was established in 2011 by the African Development Bank with an initial contribution of $57 million from Denmark. Since then, it has mobilised over $200 million from other donors, including the United Kingdom, Italy, Norway, Sweden, Spain, and the US. SEFA provides technical assistance and concessional finance instruments to unlock private sector investments in renewable energy and energy efficiency. The fund’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and Sustainable Development Goal.

SEFA’s achievements include supporting over 100 projects in 40 African countries, leveraging over $1.5 billion in investments, creating over 8,000 jobs and avoiding over 4 million tonnes of CO2 emissions per year. Some of SEFA’s flagship initiatives include the Green Mini-Grid Market Development Programme, which aims to electrify 3.6 million households and businesses in rural areas; the Desert-to-Power initiative, which will harness the solar potential of the Sahel region to connect 250 million people with electricity; and the Facility for Energy Inclusion, which provides innovative financing solutions for small-scale renewable energy projects.

The new funding commitments from Germany and the US will enable SEFA to scale up its interventions and support more projects that advance Africa’s green energy transition.

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