Momentum behind Africa’s renewable energy transition is strengthening as financing commitments accelerate, even though the number of new project approvals has edged slightly lower.
The African Development Bank said its flagship initiative, the Sustainable Energy Fund for Africa (SEFA), is expected to mobilize roughly $2.5 billion in capital over the next two years.
The projection reflects a growing pipeline of renewable energy developments across the continent and rising investor appetite for funding sustainable energy infrastructure.

Investor Contributions Continue to Rise

Contributions to SEFA increased notably in 2025, reaching $88 million compared with $54.3 million in the previous year. Much of the funding came from European Union member states, signaling renewed confidence among international donors in Africa’s clean energy market.
Germany pledged $40.1 million during the COP30 climate summit in Brazil to support the fund’s green hydrogen initiatives and universal energy access goals. Italy also committed an additional $5.9 million.
Since its launch, SEFA has accumulated around $577 million in donor funding and has helped mobilize roughly $1 billion in private commercial capital alongside its own financing.

Project Pipeline Remains Strong

The fund approved 13 renewable energy projects in 2025 valued at $97 million, slightly fewer than the 14 projects worth $108 million approved the previous year.
However, officials say the overall pace of development remains robust. Over the past two years, SEFA has approved 27 projects — among the strongest approval periods since the program began.
These projects span several African countries including Kenya, Nigeria, Burkina Faso, Ethiopia, and Chad.

Expanding Power Access Across the Continent

SEFA-backed initiatives in 2024 added approximately 840 megawatts of new electricity generation capacity and delivered around 1.5 million additional electricity connections.
Many projects focus on “green baseload” energy systems designed to provide stable electricity supply, while others include mini-grid deployments and energy efficiency programs aimed at expanding access in underserved areas.
In late 2025, the fund approved a $10 million loan to renewable developer Hyphen Hydrogen Energy to support hydrogen and ammonia production in Namibia. It also issued an $8.14 million guarantee to support a social currency bond in Ivory Coast designed to finance 400,000 new electricity connections.

Mobilizing $10 Billion by 2030

Looking ahead, the African Development Bank expects SEFA’s investments to catalyze more than $10 billion in commercial capital by 2030.
The model relies on catalytic financing — using relatively modest public-sector funding to attract significantly larger private-sector investment.
With energy demand in Africa projected to grow rapidly, expanding renewable energy infrastructure is seen as critical for economic development, energy security, and climate goals.