The African Development Bank (AfDB) has approved a $40 million equity investment in Project Zafiri, a transformative energy platform designed to accelerate access to renewable energy for underserved communities across Africa. The initiative, launched under Mission 300, aims to connect 300 million additional people to electricity by 2030, with decentralized renewable energy (DRE) playing a central role.
Addressing Africa’s Energy Access Gap
DRE solutions, such as mini-grids and stand-alone solar home systems, are widely regarded as the fastest, most cost-effective, and sustainable means of expanding electricity access in rural areas. Unlike centralized grids, these systems can be deployed rapidly, even in remote or fragile regions, making them vital to bridging the continent’s energy gap.
Project Zafiri, jointly developed by the AfDB, World Bank Group, and other partners, seeks to address the chronic shortage of patient, long-term equity capital required to de-risk and scale DRE projects. The initiative is structured as a Permanent Capital Vehicle targeting $1 billion in funding, with an initial $300 million in commitments equally divided between junior and senior equity to attract private sector investment into this high-impact, underfunded market.
Catalytic Investment for Africa’s Energy Transition
AfDB’s $40 million contribution comprises $30 million in senior equity from its balance sheet and $10 million in junior equity from the Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund managed by the Bank. According to Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, “Zafiri is a catalytic platform that provides a timely and innovative solution to scale private capital for impact as we work toward universal energy access.”
Wale Shonibare, AfDB Director for Energy Financial Solutions, Policy, and Regulations, highlighted that Zafiri represents the largest patient capital commitment to Africa’s DRE sector to date, unlocking commercial capital while delivering inclusive and climate-resilient energy access. Daniel Schroth, AfDB Director for Renewable Energy and Energy Efficiency, emphasized that SEFA’s support for the junior equity tranche is critical in attracting large-scale private investment.
Driving Economic Growth and Climate Resilience
Project Zafiri is aligned with AfDB’s Ten-Year Strategy (2024–2033), the High 5s agenda, and the New Deal on Energy for Africa, focusing on powering industries, improving livelihoods, and strengthening climate resilience. By scaling DRE solutions, the project aims to create jobs, stimulate local economies, and ensure no community is left behind in Africa’s energy transition.
The investment also contributes to Africa’s mitigation and adaptation goals under the Bank’s Climate Change and Green Growth Policy, underscoring AfDB’s commitment to mobilizing capital for clean energy and sustainable economic development.
