Finance

Germany & USA Pledge $50M to AfDB’s Energy Fund at Africa Climate Summit

Tuesday, 12 September 2023 08:45
Germany & USA Pledge $50M to AfDB’s Energy Fund at Africa Climate Summit

(AfDB) - The African Development Bank's Sustainable Energy Fund for Africa (SEFA)  welcomes approximately $50 million in new funding contributions from Germany and the United States. The contributions will serve to boost its position as one of the continent’s leading climate finance facilities.

The funding was announced on Tuesday 5 September at a high-level event organised by SEFA during the Africa Climate Summit held in Nairobi, Kenya. The event showcased SEFA's role in catalysing climate action in the energy sector and accelerating Africa's just energy transition.

Germany, SEFA’s largest donor, underscored its strong support for climate action in Africa and its positive experience working with SEFA, with the announcement of a new EUR 40 million contribution. “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, reflecting on its long-standing commitment to promoting a low-carbon and climate-resilient energy sector in Africa, re-affirmed its strong partnership with SEFA.

Power Africa's additional contribution of $6.2 million 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.

Dr. Kevin Kariuki, African Development Bank Vice-President for Power, Energy, Climate Change and Green Growth, described the new donor commitments to SEFA as “a testament to the recognition of the centrality of SEFA in supporting Africa's just energy transition."

Mauritanian Minister of Economic Affairs and Sustainable Development Abdessalam Saleh, provided a first-hand account of the importance of SEFA’s support to countries, particularly in the context of implementation of the Bank’s Desert-to-Power initiative. Desert-to-Power will harness the solar potential of the Sahel connecting 250 million people with electricity.  Saleh also emphasised the pivotal role of SEFA in promoting private-sector-led mini-grids in Mauritania.

African Development Bank Director of the Renewable Energy and Energy Efficiency Department Dr. Daniel Schroth moderated the session during which several clients and partners testified to SEFA’s influence. They included Samir Ibrahim, CEO of SunCulture and Brian Kelly, CEO of Virunga Power.

 

ABOUT SEFA

SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. 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 7.

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