The Sustainable Energy Fund for Africa (SEFA) is reinforcing its commitment to Africa’s energy transition with a $10 million contribution to the KawiSafi II clean energy fund.
This strategic investment aligns with SEFA’s broader mission of catalyzing private sector participation in the continent’s renewable energy landscape.
As a multi-donor special fund managed by the African Development Bank, SEFAplays a pivotal role in unlocking private investment in the sector.
Through a combination of catalytic finance, technical assistance, and concessional instruments, the fund aims to accelerate the adoption of affordable, reliable, and sustainable energy solutions across Africa.
Since its inception, SEFA has emerged as a leading force in Africa’s renewable energy sector. The fund has been instrumental in pioneering the African Development Bank’s involvement in green mini-grids through innovative market development programs.
Additionally, SEFA’s contributions to the establishment of the African Renewable Energy Fund and Facility for Energy Inclusion have been crucial in driving the sector’s growth.
SEFA’s strategic priorities are closely aligned with Africa’s energy challenges. The fund is focused on increasing the share of renewable energy in power systems, expanding access to electricity through clean energy mini-grids, and enhancing energy efficiency across diverse technologies and business models.
To achieve these objectives, SEFA employs a multifaceted approach, including providing technical assistance grants to both public and private entities, and offering concessional investments through result-based financing, loans, and equity.
Recent developments underscore SEFA’s growing influence. At the Africa Climate Summit, the fund secured $50 million in new commitments from Germany and the United States, solidifying its position as a leading climate finance facility on the continent.
This additional funding will enable SEFA to expand its operations and support a wider range of clean energy projects.
The investment in KawiSafi II is a testament to SEFA’s dedication to mobilizing private capital for renewable energy initiatives.
By contributing to this fund, SEFA aims to accelerate the deployment of clean energy solutions and foster Africa’s transition to a low-carbon economy.
KawiSafi II is a $200 million venture equity fund targeting energy transition, productivity, and mobility and logistics in sub-Saharan Africa. It builds on the success of KawiSafi Fund I, which invested in over 130 companies, impacting millions of lives.
With SEFA’s support, KawiSafiII is poised to accelerate clean energy adoption, create jobs, and improve livelihoods across the region.
This strategic move highlights SEFA’s unwavering commitment to Africa’s energy future and its ability to leverage partnerships to create a sustainable and prosperous continent.
