AfDB, Zafiri Back Africa’s Energy Access

Key Figures & Findings: The African Development Bank (AfDB) has approved a $40 million equity investment into Project Zafiri, a new financing platform designed to scale decentralized renewable energy (DRE) systems across underserved African communities. Developed in collaboration with the World Bank Group and other strategic partners, Zafiri targets one of the continent’s biggest energy challenges: the lack of long-term, risk-tolerant capital. The initiative aligns closely with AfDB’s broader Mission 300 goal to connect 300 million Africans to electricity by 2030 and supports multiple pillars of the Bank’s Ten-Year Strategy and climate-focused investment agenda.

Statistics & Insights: The investment comprises $30 million in senior equity and $10 million in junior equity from AfDB’s Sustainable Energy Fund for Africa (SEFA). Zafiri aims to raise $300 million in its first phase and up to $1 billion in total capitalization, with more than half of Africa’s new electricity connections expected to come from DRE solutions by 2030.

Future Implications: If Zafiri reaches full capitalization by 2026, it could become the largest equity-backed vehicle supporting DRE growth in Africa, potentially accelerating electrification in fragile and remote regions. The structure could also set a new precedent for how blended finance mechanisms attract private capital into high-risk clean energy markets.

Source: Devdiscourse