Japan has joined the Sustainable Energy Fund for Africa as a donor, thus expanding the fund’s donor base to 11 and strengthening its capacity to support crucial energy projects.
According to a statement on Wednesday, SEFA said the announcement was made at a thematic boardroom session showcasing innovative funding structures to accelerate Africa’s energy transition.
The session also saw the launch of the Understanding Power Project Financing Handbook, a crucial resource for unpacking the complexities of power project financing and understanding emerging project structures and financial solutions.
The handbook, a collaborative effort between the U.S. Department of Commerce, Commercial Law Development Program, Power Africa, and SEFA, offers practical insights into various financing structures, risk mitigation strategies, and methods for attracting climate-focused investors.
In his remarks, the African Development Bank’s Vice-President for Power, Energy, Climate Change, and Green Growth, Dr. Kevin Kariuki, said, “The energy access gap in Africa demands innovative financing solutions at scale. SEFA, now strengthened by the addition of Japan to its donor base, is uniquely positioned to address this challenge and unlock the transformative potential of clean energy for millions of Africans. Mission 300 is a testament to our commitment to achieving universal access to electricity.”
The Power Africa Coordinator, Richard Nelson, noted that for Africa’s incredible energy resources to be put to work to drive broad-based economic growth that will benefit people across the continent, “we have to link investors and developers with opportunities that are as bankable and shovel-ready as possible. Today’s session demonstrated how we do just that through our collaboration with the Department of Commerce, the African Legal Support Facility, and the African Development Bank.”
Head of Electric Finance, BURN, Meredith Muthoni, noted, “Clean cooking is about more than energy; it is about transforming lives, protecting health, and preserving the environment. Through our partnership with the SEFA Fund on a blended finance facility, we are combining commercial and patient capital to bridge funding gaps, de-risk investments, and attract private capital into carbon pre-finance projects. This approach enables us to scale affordable, electric cooking solutions for underserved households in Africa, driving lasting impact and advancing the clean energy transition.”
The boardroom session featured two panels moderated by the Director of Renewable Energy and Energy Efficiency at the African Development Bank, Dr. Daniel Schroth.
The first one, ‘Scaling Up Blended Finance for Africa’s Energy Transition, explored the evolving landscape of power project financing in Africa and the transformative role of blended finance. Discussions focused on key sector shifts over the past decade, the impact of blended finance on project bankability, and the innovative approaches detailed in the newly launched handbook.
The second panel, Investment-Ready Opportunities from the SEFA Pipeline, showcased a selection of investment-ready projects across diverse sectors and geographies that demonstrate the effectiveness of SEFA’s blended finance model.