AFRICA – The German government will contribute €100 million (US$115.83m) to the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), affirming its commitment to efforts to tap Africa’s renewable energy potential and drive its transition to clean energy sources.
The funding will go to unlock private sector investment in green-baseload projects, a SEFA priority focus. Specifically, it will support technical assistance and investment in power generation, transmission and distribution to increase penetration of renewable power in African grids.
“We need to accelerate the global energy transition. This requires the rapid phasing out of all fossil fuels and a massive expansion of renewable energy. The time to act is now,” Norbert Barthle, Parliamentary State Secretary of the German Ministry for Economic Cooperation and Development, said during the High-Level Dialogue.
The financing aligns with the G20 Compact with Africa launched during Germany’s tenure of the G20 Presidency. The Compact promotes macroeconomic, business and financing reform to attract more private investment in Africa.
“Germany’s new contribution is a major boost towards SEFA’s capitalization target of US$500 million. It is also recognition of the catalytic role SEFA has been playing in accelerating Africa’s energy transition and supporting clean energy access solutions,” Dr. Daniel Schroth, the Bank’s Acting Director for Renewable Energy and Energy Efficiency, said.
SEFA is a multi-donor special fund that aims to unlock private sector investments that contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa strategy and Sustainable Development Goal 7.