The African Development Bank (AfDB) has approved a $40 million equity investment in Project Zafiri, a pan-African initiative designed to accelerate renewable energy access for underserved communities.
This commitment advances “Mission 300,” which targets connecting 300 million additional Africans to electricity by 2030 through decentralized renewable energy (DRE) solutions like mini-grids and solar home systems.
Project Zafiri, developed with the World Bank Group and partners, addresses the critical shortage of long-term capital hindering DRE expansion. Structured as a $1 billion Permanent Capital Vehicle, it combines junior and senior equity to attract private investment into high-impact, underfunded energy projects across remote and fragile regions.
The AfDB’s investment comprises $30 million in senior equity from its balance sheet and $10 million in junior equity via its Sustainable Energy Fund for Africa (SEFA). According to Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, “Zafiri is a catalytic platform that provides a timely and innovative solution to scale private capital for impact.” He emphasized its role in advancing universal energy access.
AfDB Director Wale Shonibare noted Zafiri represents the largest patient capital commitment to Africa’s DRE sector, unlocking commercial investment while promoting inclusive and climate-resilient energy. Daniel Schroth, Director for Renewable Energy, highlighted SEFA’s junior equity as crucial for attracting private participation.
The project aligns with AfDB’s strategic goals under its Ten-Year Strategy and New Deal on Energy for Africa. It aims to power industries, improve livelihoods, create jobs, and strengthen climate resilience, ensuring communities aren’t left behind in Africa’s energy transition. The initiative also supports continental climate goals under the Bank’s Green Growth Policy.
