In an announcement made at the UN High-Level Dialogue on Energy, the German government has contributed €100 million towards African Development Bank‘s Sustainable Energy Fund for Africa. The funds are geared towards tapping the continent’s renewable energy potential driving the transition to clean energy sources.
The funds target SEFA-priority areas and work towards unlocking private sector investment in green projects. Special focus will go towards technical assistance and investments in power generation, transmission, and distribution while increasing the penetration of renewable power on African grids.
The financing is part of the G-20’s Compact with Africa unveiled during Germany’s presidency at the G-20. This further promotes macroeconomic, business and financing reforms attracting more private investment across Africa.
SEFA is a multi-donor special fund that aims to unlock private sector investments contributing towards universal access to affordable, reliable, sustainable energy sources across Africa. SEFA has also received contributions from Denmark, Italy, Germany, Spain, Sweden, Norway, Nordic Development Fund, the United States, and the United Kingdom.