SEFA's $2.5 Billion Financing Boost: Accelerating Africa's Energy Transition
Africa's Sustainable Energy Fund for Africa (SEFA) is set to increase its financing to $2.5 billion in the next two years, reflecting the growing momentum behind the continent's energy transition. The fund, managed by the African Development Bank, has already mobilized about $1 billion in commercial capital since its inception. With contributions rising to $88 million in 2025, mainly from European Union member countries, SEFA is proving its catalytic value on the ground.
The bank's Renewable Energy Funds Division manager, Joao Duarte Cunha, projects that capital mobilization will reach $2.5 billion based on the fund's project pipeline. By 2030, SEFA expects its portfolio to yield over $10 billion in commercial capital mobilized. The fund's impact has been significant, with accelerated approvals and disbursements, as well as growing investor confidence in African renewables.
Last year, the African Development Bank approved 13 renewable energy projects worth $97 million, demonstrating a commitment to driving the energy transition and achieving universal energy access by 2030. Germany and Italy have made substantial contributions to support SEFA's initiatives, including universal energy access and a green hydrogen program. SEFA, backed by donors like Denmark, aims to attract private investment in clean energy projects across Africa.
In 2024, SEFA approved 14 renewable energy projects in countries like Kenya, Nigeria, Burkina Faso, Ethiopia, and Chad, adding 840 megawatts of generating capacity and 1.5 million new electricity connections. These projects include green baseload, green mini-grids, and energy efficiency initiatives, highlighting the fund's commitment to sustainable development and expanding energy access across the continent. The fund's impact is expected to continue to grow, driving the energy transition in Africa.