AfDB Invests $40M to Accelerate Renewable Energy Access through Project Zafiri
The African Development Bank (AfDB) has approved a $40 million equity investment in Project Zafiri, a groundbreaking platform aimed at bridging Africa’s energy access gap by expanding decentralized renewable energy (DRE) solutions.
Developed in collaboration with the World Bank Group and other partners, Zafiri tackles the chronic shortage of patient, long-term equity needed to scale mini-grids and stand-alone solar systems for underserved communities. These systems, considered faster and more cost-effective than traditional grid extensions, are crucial to achieving Mission 300 — the initiative to connect 300 million more Africans to electricity by 2030.
Zafiri, structured as a $1 billion permanent capital vehicle, will unlock private capital through a blend of junior and senior equity. AfDB’s contribution comprises $30 million in senior equity and $10 million in junior equity from the Sustainable Energy Fund for Africa (SEFA).
“This investment comes at a critical time. We have just five years to meet Mission 300’s ambitious targets,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth. “Zafiri provides the innovative financial tools needed to attract large-scale private investment for inclusive, climate-resilient energy access.”
Energy access experts view Zafiri as a game-changer. By prioritizing patient capital, it will unlock commercial funding, strengthen rural economies, and create sustainable jobs. The platform aligns with AfDB’s broader vision under its Ten-Year Strategy, the High 5s agenda, and the New Deal on Energy for Africa to light up and power the continent.
DRE solutions are expected to provide over half of Africa’s new electricity connections by 2030, making Project Zafiri a key driver in reducing energy poverty, promoting green growth, and supporting Africa’s journey toward universal access.
