The African Development Bank (AfDB) has welcomed US$136mn in additional donor commitments for the Sustainable Energy Fund for Africa (SEFA)
The announcements came during an event at the COP26 conference featuring government ministers and a panel of leaders in renewable energy. The event was an occasion for SEFA donors to reaffirm their support for the Fund’s institutional priorities. SEFA is a multi-donor trust fund managed by the AfDB.
Denmark, SEFA’s founding partner and first donor, unveiled around US$14mn in fresh commitments.
Flemming Møller Mortensen, Denmark’s minister for Development and Nordic Cooperation, said that energy was transformational for economic growth, job creation and strengthening climate resilience. “The good news is that green energy - such as wind and solar - has become cheaper than fossil fuel. This opens a unique opportunity to close the energy gap for the almost 600 million people living in Africa without access to electricity today with renewable energy sources.”
With nearly 55% of the population still lacking access to modern energy, fast population growth and ongoing economic transformation, Africa will require a step-change in investment activity to meet targets under Sustainable Development Goal 7 and the Paris Agreement. Traditional large-scale fossil-fuel baseload technologies are no longer cost-competitive nor climate-compatible.
SEFA is a multi-donor special fund that aims to unlock private sector investments that contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa. SEFA has received contributions from the Government of Denmark, Germany, Italy, Norway, Nordic Development Fund, Sweden, Spain, United Kingdom and United States.
