By Abdullahi Lukman
The African Development Bank (AfDB) has approved a $40 million equity investment in Project Zafiri, a new financing platform designed to accelerate access to renewable energy across Africa.
The move supports the Bank’s flagship Mission 300 initiative, which aims to connect 300 million people to electricity by 2030.
Jointly developed by the AfDB, World Bank Group, and other partners, Project Zafiri addresses the urgent need for long-term equity capital to scale Decentralized Renewable Energy (DRE) solutions—such as mini-grids and solar home systems—for underserved communities.
These systems are considered the fastest and most cost-effective way to expand energy access in remote and fragile areas.
The $40 million commitment includes $30 million in senior equity from AfDB’s balance sheet and $10 million in junior equity through the Sustainable Energy Fund for Africa (SEFA), a multi-donor fund managed by the Bank.
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Zafiri is structured as a Permanent Capital Vehicle targeting $1 billion in total capitalization, with Phase 1 seeking $300 million—half in junior equity to attract private sector investment into this higher-risk market.
Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, described Zafiri as a “catalytic platform” and a core part of the Bank’s universal energy access strategy.
Wale Shonibare, Director for Energy Financial Solutions, called it the largest patient capital commitment to the African DRE sector so far.
Daniel Schroth, Director for Renewable Energy and Energy Efficiency, emphasized SEFA’s key role in anchoring junior equity to crowd in private capital and drive market growth.
Zafiri also supports the AfDB’s Ten-Year Strategy (2024–2033), the High 5s goals—especially Light Up and Power Africa—and the New Deal on Energy for Africa.
Additionally, the platform contributes to the Bank’s climate goals under its Climate Change and Green Growth Policy and Strategy and aligns with the Private Sector Development Strategy (PSDS) to mobilize equity for clean and efficient energy investments.
According to a report distributed by the APO Group, Zafiri represents a pioneering model for blended finance in Africa’s energy transition and a significant step toward universal energy access.
