NAIROBI, Kenya — Africa’s premier clean energy financing mechanism is poised for substantial growth, with plans to escalate its funding capacity to $2.5 billion within the next two years. This ambitious expansion signals accelerating momentum behind the continent’s transition to sustainable energy solutions.
The African Development Bank’s Sustainable Energy Fund for Africa (SEFA) has demonstrated remarkable progress, with contributions surging to $88 million in 2025—a significant increase from $54.3 million the previous year. This upward trajectory reflects renewed investor confidence in Africa’s renewable energy sector, predominantly fueled by support from European Union member nations.
Joao Duarte Cunha, overseeing the bank’s Renewable Energy Funds Division, revealed the fund’s strategic projections: “Based on our extensive projects pipeline, we anticipate capital mobilization reaching $2.5 billion. By 2030, we expect our portfolio to yield over $10 billion in commercial capital mobilization.”
The fund’s operational performance has been particularly strong recently, with 27 projects approved over the past two years. In 2024 alone, SEFA sanctioned 14 renewable energy initiatives across Kenya, Nigeria, Burkina Faso, Ethiopia, and Chad. These projects will contribute approximately 840 megawatts of generating capacity and establish 1.5 million new electricity connections.
Notably, eight of these initiatives were classified as green baseload projects—essential for meeting minimum national energy demands—while two involved green mini-grids and four focused on energy efficiency improvements.
International support continues to strengthen SEFA’s mission. Germany committed $40.1 million during last year’s COP 30 climate summit in Brazil, while Italy announced a $5.9 million contribution. These investments will advance SEFA’s universal energy access objectives and support its green hydrogen program.
Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at the African Development Bank Group, emphasized SEFA’s growing impact: “SEFA is demonstrating its catalytic value through accelerated approvals, disbursements, and expanding influence across the continent.”
The fund’s innovative approach extends beyond traditional utility-scale projects. SEFA is actively investing in decentralized energy platforms, including mini-grid developers and private equity funds specializing in distributed energy solutions. Additionally, the organization is piloting new financing mechanisms for clean cooking technologies and commercial bank partnerships.
Cunha highlighted the fund’s evolving strategy: “Demand for catalytic financing continues to grow exponentially. We remain deeply committed to driving Africa’s energy transition and achieving universal energy access by 2030 through meaningful innovation in the clean energy space.”