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Africa's Clean Energy Fund to Double Financing
4 Mar
Summary
- SEFA financing to exceed $2.5 billion in two years.
- Renewed investor confidence drives SEFA contributions.
- Aim for universal energy access by 2030.
Africa's flagship clean energy fund, SEFA, is set to more than double its financing to $2.5 billion over the next two years, signaling significant momentum in the continent's energy transition. Investor confidence has been revitalized, with SEFA's contributions rising to $88 million in 2025, primarily from European Union member countries. This increase underscores the fund's catalytic role in mobilizing commercial capital.
SEFA aims to mobilize over $10 billion in commercial capital by 2030, supporting projects that expand energy access and foster sustainable development. In 2024, SEFA approved 14 projects across Kenya, Nigeria, Burkina Faso, Ethiopia, and Chad, adding 840 megawatts of generating capacity and connecting 1.5 million new users. Germany and Italy have made significant commitments, contributing to SEFA's goals and its green hydrogen program.
The fund is actively investing in diverse decentralized energy platforms, including mini-grid developers and private equity funds. SEFA is also exploring innovative product lines for clean cooking and financing through commercial banks, demonstrating a commitment to driving the energy transition and achieving universal energy access by 2030.
