By: Zawya

The African Development Bank's Sustainable Energy Fund for Africa (SEFA) has secured significant new financial backing, receiving nearly €50 million ($57 million) in commitments from the governments of Germany and Italy. This funding boost was announced at a COP30 side event and is strategically designed to accelerate the rollout of "Mission 300," an initiative aimed at achieving universal energy access and advancing climate action across Africa's power sector. The new capital underscores the critical role of targeted, multi-donor funds in mobilizing resources for Africa's energy transition.

The commitments from the two European nations are strategically allocated to key areas. Germany pledged €14 million to support SEFA's core goal of universal energy access and a substantial €30 million to launch a new SEFA green hydrogen program. This significant investment in green hydrogen highlights its perceived strategic importance for both Africa's decarbonization and its future industrial development, positioning the continent as a potential exporter of clean energy.

High-level officials from both donor countries emphasized the partnership's mutual benefits. Dr. Katharina Stasch of Germany's development ministry described the African Development Bank as an "excellent partner" and framed the green hydrogen collaboration as a 'win-win,' fostering industrial development and jobs in Africa while diversifying Europe's future energy imports. From Italy, Roberto Amerise announced a €5 million contribution and stressed the importance of encouraging private investment to accelerate the continent's sustainable development.

A central theme of the discussions was the vital role of blended finance in de-risking projects to attract much larger volumes of commercial capital. The event showcased successful SEFA-supported projects as proof of concept, including the landmark Obelisk facility in Egypt—a 1 GW solar PV and battery storage project—and the work of BURN, a leading African clean cooking company. These examples demonstrated how targeted funding can catalyze bankable, scalable, and human-centered energy solutions.

The event also highlighted the essential conditions required to attract private sector investment. Speakers pointed to the need for predictable and attractive regulatory frameworks to make energy transition projects financially viable. Furthermore, they emphasized the opportunity to leverage the declining costs of renewable energy technologies through the efficient deployment of development funding, maximizing the impact of every public dollar.

The new funding is set to provide crucial momentum for the African Development Bank's "Mission 300" goals, which are central to the continent's energy and climate ambitions. AfDB Vice-President Dr. Kevin Kariuki stated that the commitments would provide "wind in the sails" for this initiative, reinforcing SEFA's central role in Africa's journey toward universal energy access and a sustainable power sector.

In summary, the new financial pledges from Germany and Italy represent a strong vote of confidence in SEFA's strategy and a significant step forward for Africa's energy future. By combining targeted grants and blended finance for both foundational energy access and cutting-edge sectors like green hydrogen, this partnership aims to unlock private investment, drive sustainable development, and integrate Africa's energy transition into the global climate agenda.