The African Development Bank (AfDB) and the Sustainable Energy Fund for Africa (SEFA) have committed $40 million to Zafiri, a new investment platform designed to support decentralized renewable energy (DRE) projects across the continent.
Zafiri was developed with the World Bank Group and other partners to address a key financing gap in the energy sector: the lack of long-term equity capital needed to scale up DRE solutions like mini-grids and solar home systems, especially in rural and underserved areas.
The investment supports Mission 300, AfDB’s initiative to connect 300 million Africans to electricity by 2030. Decentralized systems are expected to deliver more than half of these new connections, as they are more adaptable and cost-effective in areas where traditional grid infrastructure is impractical or too expensive.
AfDB’s investment includes $30 million in senior equity and $10 million in junior equity through SEFA, a fund it manages. The junior equity tranche is intended to attract additional private investors by absorbing higher risk.
“Zafiri fits into the Bank’s wider energy access goals and provides a way to bring more private capital into underserved markets,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth.
According to Wale Shonibare, Director for Energy Financial Solutions, Policy and Regulations, Zafiri represents the largest long-term equity commitment made to Africa’s DRE sector so far. The platform uses a blended finance structure that combines public and private funding to support energy companies that often struggle to raise capital.
Zafiri is structured as a Permanent Capital Vehicle, with a long-term goal of raising $1 billion. The first phase targets $300 million in commitments, split evenly between junior and senior equity.
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Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency, noted that SEFA’s junior equity contribution is crucial to reducing investment risk and encouraging private sector involvement at scale.
The platform is aligned with several of AfDB’s strategic priorities, including its Ten-Year Strategy (2024–2033), the High 5s development agenda, and its Climate Change and Green Growth Policy. It also contributes to the Bank’s efforts to attract private investment into clean energy infrastructure and promote energy access that is both reliable and environmentally sustainable.
Zafiri is not a grant facility or short-term initiative. It is designed to support commercially viable energy businesses that can expand services to areas that remain disconnected from national grids.
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For many communities, decentralized energy offers the only realistic path to electricity access. The success of platforms like Zafiri could determine how quickly and effectively these communities are connected.
