- AfDB approved a $40 million equity investment in Project Zafiri to scale decentralised renewable energy across Africa.
- The initiative aims to connect 300 million people by 2030 by attracting private capital through a $1 billion blended finance platform.
The African Development Bank (AfDB) has approved a $40 million equity investment in Project Zafiri, a landmark initiative under Mission 300 designed to expand renewable energy access across Africa. The investment marks a significant step toward unlocking patient capital for Decentralised Renewable Energy (DRE) solutions that serve underserved communities.
AfDB partnered with the World Bank Group and other institutions to launch Zafiri, a transformative equity platform aimed at addressing Africa’s chronic shortage of long-term equity financing. This shortfall has long constrained efforts to scale DRE solutions, such as mini-grids and solar home systems, that offer the fastest, most cost-effective path to universal electricity access in rural Africa.
“Zafiri is a catalytic platform that forms a key part of our strategy to accelerate universal energy access,” said Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at AfDB. “With just five years left to meet Mission 300’s target of connecting 300 million more people by 2030, this initiative comes at a crucial time.”
Furthermore, Zafiri supports Mission 300’s goals, which prioritise connecting off-grid communities through modular, scalable DRE systems. These solutions are particularly suited to Africa’s dispersed populations and geographic constraints and are expected to deliver over half of all new electricity connections on the continent by 2030.
In addition, AfDB structured Zafiri as a Permanent Capital Vehicle targeting $1 billion in total capitalisation. In Phase 1, the platform seeks $300 million, split evenly between junior and senior equity. The Bank’s $40 million investment includes $30 million in senior equity from its balance sheet and $10 million in junior equity from the Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund managed by AfDB.
AfDB aims to crowd private investment into a high-impact but undercapitalised market segment by anchoring the junior equity tranche.
“Zafiri represents the largest commitment of patient capital to the African DRE sector to date,” said Wale Shonibare, Director for Energy Financial Solutions, Policy, and Regulations. “It’s a powerful example of how blended finance can unlock commercial capital and deliver inclusive, climate-resilient energy access.”
Daniel Schroth, Director for Renewable Energy and Energy Efficiency, added: “By addressing the shortage of long-term equity, Zafiri removes a major barrier to growth for DRE developers. SEFA’s role in anchoring junior equity is key to derisking the market and attracting private investors.”
Zafiri aligns closely with the AfDB’s Ten-Year Strategy (2024–2033) and flagship initiatives such as the High 5s, particularly Light Up and Power Africa, Industrialise Africa, and Improve the Quality of Life for the People of Africa. It also supports the New Deal on Energy for Africa, the Bank’s Climate Change and Green Growth Policy, and the Private Sector Development Strategy (PSDS).
As an innovative approach to blended finance, Zafiri offers a replicable model for scaling clean energy investment across Africa. By mobilising the private sector to invest in the continent’s energy transition, it sets the stage for a more inclusive and sustainable energy future.