AFDB receives $50 million from the US and Germany to fund the sustainable energy sector
The African Development Bank's Sustainable Energy Fund for Africa (SEFA) has received 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 organized by SEFA during the Africa Climate Summit held in Nairobi, Kenya. The event showcased SEFA's role in catalyzing 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, reaffirmed 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 the 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 emphasized 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.