Sustainable Energy Fund for Africa (SEFA) [NDF C127]
The Sustainable Energy Fund for Africa (SEFA) is a special fund designed to catalyse private sector investments in early stage renewable energy and energy efficiency markets to stimulate a transformative transition to more inclusive and green growth in Africa. SEFA is a delivery vehicle for African Development Bank’s (AfDB) New Deal on Energy for Africa (NDEA).
Regional Africa
Sustainable Energy Fund for Africa (SEFA)
Ref. NDF C127
NDF grant EUR 10 million
Project period: 2020-2029
Partner Agency: African Development Bank
Objective
The overarching objective of the special fund is to contribute to universal access to sustainable, reliable, and affordable energy services in Africa, while addressing several key themes of the NDEA: early-stage project finance, renewable energy, off-grid connectivity and energy sector country programs. In order to achieve this goal, SEFA works with governments, private sector, and bilateral and multilateral initiatives to develop public-private transformative partnerships for energy sector finance in Africa.
SEFA focuses on three main themes, green mini-grids, energy efficiency and green baseload, and provides funding through two windows. Firstly, technical assistance window provides grant financing for project and program development. Secondly, concessional investment window channels financing to investment activities and promotes blended finance structures.
The following outcomes are expected:
1) SEFA finances sustainable energy projects and enabling environment activities that contribute to scaling up sustainable energy in Africa,
2) SEFA supports projects by lowering technology and financing costs and providing risk mitigation along the project development cycle, from early stage development to commissioning, and
3) SEFA builds capacity of local and regional actors, including public and private, to improve investment frameworks for sustainable energy in Africa.
The implementation of the project is done by the African Development Bank. The NDF financing is provided as joint grant co-financing.
Financing
NDF will provide up to EUR 10 million joint grant co-financing, consisting of EUR 9.2 million contribution to SEFA fund resources, and EUR 0.8 million to support the fund operations by providing a full-time consultant.
NDF Contact
Program Manager: Isabel Leroux (isabel.leroux@ndf.int)
