Accelerating the energy transition in Africa towards the Mission 300 objectives

We are a multi-donor trust fund managed by the African Development Bank that aims to catalyse private sector investments in renewable energy and energy efficiency projects across Africa. Our vision is to promote sustainable development and enhance energy access for all Africans through innovative solutions that drive economic growth and ensure environmental sustainability.

As Africa faces significant energy challenges, with over 570 million people lacking access to electricity, we are crucial in unlocking the continent's renewable energy potential. Our approach focuses on providing catalytic finance and technical assistance to support a wide range of clean energy projects, including solar, wind, hydroelectric power, and energy efficiency initiatives. By de-risking investments and improving project bankability, we help attract private capital and accelerate the deployment of these renewable energy solutions.

SEFA 2.0 addresses Africa’s energy challenges through innovative financing and strategic partnerships

Our focus on private sector-driven solutions is pivotal to overcoming the financial, technical, and regulatory barriers that have historically hindered the growth of sustainable energy in Africa.

key objectives include

Accelerating renewable energy adoption

Promoting energy efficiency

Enhancing energy access

Catalysing private sector participation

SEFA 2.0 instruments

SEFA 2.0 operates through two core pillars—concessional investments and technical assistance—both of which aim to address the key challenges in the development of sustainable energy projects across Africa. These complementary approaches ensure that projects are financially viable, well-prepared, and supported by strong regulatory environments.

Concessional investments

SEFA provides concessional financing through instruments such as equity investments, loans, and reimbursable grants. These investments reduce the financial risks associated with renewable energy projects, making them more attractive to private investors and improving their overall viability. By offering concessional terms, SEFA plays a catalytic role in unlocking private sector capital for clean energy initiatives.

Technical assistance

We offer technical assistance to support project preparation and create an enabling environment for sustainable energy. This assistance includes grants for feasibility studies, environmental assessments, and detailed engineering designs, ensuring that projects are well-prepared for investment. In addition, SEFA provides capacity-building and policy advisory services to help governments and institutions establish regulatory frameworks that foster investment in renewable energy.

Focal areas

SEFA 2.0’s operations are organised around three major thematic areas, each targeting a critical aspect of Africa’s energy needs:

  • Green baseload focuses on large-scale renewable energy projects that can replace or reduce reliance on fossil fuels.

    sustainable alternatives to grid-based fossil-fuel-based generation
    GBL projects, comprising utility-scale variable renewable energy generation (e.g. wind and solar power) - integrated with energy storage to support power system stability – as well as hydropower, geothermal energy and biomass-to-power, offer alternatives to fossil fuel-based generation. Such projects also offer opportunities to create jobs and stimulate economic development while reducing carbon emissions. If supported by investments in transmission and distribution grids, utility-scale renewable energy generation facilitates enterprises’ and households’ access to electricity.

  • Green Mini-Grids are small, independent energy systems that generate and distribute electricity in isolated areas, often using renewable energy sources.

    energising communities, transforming lives
    SEFA seeks to leverage modularity and declining costs of renewable energy to expand electricity access for some of Africa’s most rural and remote populations. We aim to catalyse local economic growth and resilience-building by championing decentralised energy solutions, particularly mini-grids. SEFA provides targeted technical assistance through initiatives such as the Africa Mini-grid Market Acceleration Programme (AMAP), which supports governments in improving regulatory frameworks, identifying projects, and structuring procurement programmes for private sector-led development of mini-grids.

    Further, SEFA leverages its concessional financing instruments to de-risk investments in green mini-grids by bridging commercial viability shortcomings to bring electricity access to some of the continent’s poorest populations – including educational and health facilities - and fostering development through integration with productive uses of energy.

  • energy efficiency initiatives optimise energy use across sectors, reducing energy consumption and greenhouse gas emissions. 

    rationalising energy consumption, scaling up efficient appliances
    support for EE technologies and policies to promote sustainability and resilience across the power sector, both in generation and consumption. Areas of intervention include innovative financing solutions for appliance businesses, clean cooking and electromobility, and more classic interventions in policy advocacy and capacity building. SEFA is expected to rationalise energy consumption, enhance energy security, and lower energy bills for households and enterprises.

Our donors

The fund's work is made possible through the support of a wide range of donors, including the Governments of Denmark, Germany, Norway, Sweden, the United Kingdom, the United States of America, Italy, Spain, Japan and France, as well as the Nordic Development Fund and the Global Energy Alliance. These donors are committed to promoting sustainable energy in Africa and supporting efforts to drive economic development and poverty reduction through access to clean energy.

Grant requests

We want to inform all potential applicants that SEFA is currently at full capacity and unable to accept any new project applications. Our team is fully engaged with ongoing projects and is committed to ensuring the highest standards of quality and impact in our existing pipeline/portfolio. We appreciate your interest and encourage you to visit our website for future updates regarding when we can accept new project applications again. Thank you for your understanding and support.