The German government is to contribute €100 million to the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), with the funding set to unlock private sector investment in green-baseload projects, a SEFA priority focus.
The funding – which follows Germany’s initial contribution to SEFA of €50 million, made in 2020 – will specifically support technical assistance and investment in power generation, transmission and distribution to increase penetration of renewable power in African grids.
“Germany’s new contribution is a major boost towards SEFA’s capitalization target of $500 million,” commented Dr. Daniel Schroth, the Bank’s Acting Director for Renewable Energy and Energy Efficiency. “It is also recognition of the catalytic role SEFA has been playing in accelerating Africa’s energy transition and supporting clean energy access solutions.”
SEFA is a multi-donor special fund that aims to unlock private sector investments that contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa strategy and Sustainable Development Goal 7.
SEFA has received contributions from the Government of Denmark, Germany, Italy, Norway, Nordic Development Fund, Sweden, Spain, United Kingdom and United States.