Japan has joined the Sustainable Energy Fund for Africa (SEFA) as a donor, expanding the fund’s network to 11 contributors and boosting its capacity to support critical energy projects aimed at bridging Africa’s energy access gap.
The announcement was made during a thematic boardroom session that showcased innovative funding models designed to accelerate Africa’s energy transition. The session also featured the launch of the Understanding Power Project Financing Handbook, a vital resource offering insights into project financing structures and climate-focused investment strategies.
Handbook to Drive Energy Transition
The handbook, developed collaboratively by the U.S. Department of Commerce, the Commercial Law Development Program, Power Africa, and SEFA, provides practical tools for understanding financing structures, mitigating risks, and attracting investments for clean energy projects.
Dr. Kevin Kariuki, African Development Bank Vice-President for Power, Energy, Climate Change, and Green Growth, emphasized SEFA’s strengthened capacity with Japan’s involvement. “The energy access gap in Africa demands innovative financing solutions at scale. With Japan now part of our donor base, SEFA is uniquely positioned to unlock clean energy’s transformative potential for millions across the continent,” he said.
Building Bankable Energy Projects
Richard Nelson, Power Africa Coordinator, stressed the importance of linking investors with viable energy projects. “Africa’s abundant energy resources must drive broad-based economic growth. To achieve this, we need to connect investors and developers with projects that are bankable and ready for implementation,” Nelson said, highlighting the role of partnerships in achieving these goals.
Meredith Muthoni, Head of Electric Finance at BURN, highlighted SEFA’s blended finance initiatives for clean cooking solutions. “Our partnership with SEFA combines commercial and patient capital to bridge funding gaps, de-risk investments, and scale affordable electric cooking solutions for underserved households, advancing the clean energy transition,” she explained.
Panels Explore Energy Financing and Investments
The session featured two panels moderated by Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank.
- The first panel, Scaling Up Blended Finance for Africa’s Energy Transition, examined sectoral shifts, project bankability, and innovative financing solutions.
- The second panel, Investment-Ready Opportunities from the SEFA Pipeline, showcased viable projects that demonstrate the effectiveness of SEFA’s blended finance model.
Japan’s partnership with SEFA underscores the global commitment to addressing Africa’s energy challenges and ensuring universal access to clean, sustainable electricity through innovative financing and collaboration.
