The African Development Bank has approved the conversion of the Sustainable Energy Fund for Africa (SEFA) which it administers into a “special fund”, to amplify its development impact by allowing it to access a wider range of financial instruments.
Currently SEFA supports small and medium-scale renewable energy and energy-efficiency projects through early stage interventions that enhance project bankability and access to private sector investments.
Mr. Wale Shonibare, AfDB Vice-President for power, energy, climate and green growth, said that this fund will provide critical support to African countries to accelerate the transition towards greener and more sustainable power systems. SEFA’s ability to provide various financial instruments would unlock more private sector investments in new technologies and businesses.
First established in 2012, SEFA is anchored in a commitment of $121 million by the governments of Denmark, United States, United Kingdom, Italy, Norway and Spain.
To date, it has committed $76 million across 56 projects in 30 countries.
The fund’s investments are expected to leverage over $1.5 billion in investments in new capacity and connections across Africa.
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