- The Sustainable Energy Fund for Africa (SEFA) welcomed Japan as a new donor, expanding its base to 11 contributors and boosting its capacity to support key energy projects.
- SEFA showcased investment-ready projects, including clean energy initiatives in Nigeria, DRC, and Kenya, during the Africa Investment Forum 2024.
The Sustainable Energy Fund for Africa (SEFA) reached a significant milestone at the Africa Investment Forum 2024, announcing Japan as its newest donor, expanding its contributor base to 11 and enhancing its capacity to support key energy projects across the continent.
The announcement was made during a thematic boardroom session focused on innovative funding structures to accelerate Africa’s energy transition. The session also marked the launch of the “Understanding Power Project Financing Handbook,” a vital resource to simplify the complexities of power project financing.
The handbook, a collaboration between the U.S. Department of Commerce’s Commercial Law Development Program (CLDP), Power Africa, the African Legal Support Facility (ALSF), and SEFA, provides practical guidance on various financing structures, risk mitigation strategies, and attracting climate-conscious investors.
Richard Nelson, Power Africa Coordinator, emphasised connecting investors and developers with bankable opportunities to unlock Africa’s energy potential. He said, “For Africa’s incredible energy resources to drive broad-based economic growth, we need to link investors with shovel-ready and bankable opportunities.”
The session featured two panels moderated by Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank. The first panel, “Scaling Up Blended Finance for Africa’s Energy Transition,” examined the evolving role of blended finance in Africa’s energy sector and its impact on project bankability.
The second panel, “Investment-Ready Opportunities from SEFA’s Pipeline,” highlighted projects from SEFA’s portfolio, showcasing initiatives across different sectors and regions with significant development potential. Featured projects included the ARM-Harith Successor Infrastructure Equity Fund in Nigeria and West Africa, the Moyi Power Metro-Grids project in the Democratic Republic of Congo, and BURN Clean Cooking Solutions in Kenya.
Meredith Muthoni, Head of Electric Finance at BURN, emphasised the broader impact of clean cooking, stating, “Clean cooking is about transforming lives, protecting health, and preserving the environment. Our partnership with SEFA helps bridge funding gaps and attract private capital into carbon pre-finance projects, enabling us to scale affordable electric cooking solutions.”
The success of projects like Moyi and others in SEFA’s portfolio highlights the importance of innovative financial mechanisms in achieving Africa’s energy goals, particularly the Mission 300 initiative, which aims to provide electricity access to 300 million Africans by 2030.
Dr. Kevin Kariuki, the African Development Bank’s Vice-President for Power, Energy, Climate Change, and Green Growth, praised SEFA’s strengthened role with Japan’s addition, stating, “The energy access gap in Africa requires innovative financing solutions, and SEFA is uniquely positioned to help close this gap and unlock the potential of clean energy for millions of Africans.”
The event concluded with a call for increased collaboration and investment to drive Africa’s energy transition.