Page 7 - AfrElec Week 50 2020
P. 7
AfrElec INVESTMENT AfrElec
AfDB secures $90mn in donor commitments
to fund sustainable generation
AFRICA THE African Development Bank (AfDB) has NDF managing director Karin Isaakson,
secured $90mn in new donor commitments for announcing a €10mn ($12.19mn) commitment,
the Sustainable Energy Fund for Africa (SEFA), noted that “SEFA’s proven capability to promote
which aims to fund sustainable generation and early stage projects, businesses and markets, as
nudge governments away from dirty and costly well as to design and implement new and innova-
fossil fuel technology. tive financing structures and mobilise additional
The new SEFA Special Fund is expected funding fits well with NDF’s strategic pathways.
to expand, be more flexible, as well as be more We look forward to identifying opportunities
responsive to Africa’s fast changing energy mar- to co-create new climate finance instruments
ket, with a sharper focus on green mini-grids and together with SEFA.”
green baseload, and offering a wider array of cat- Other significant funding came from the
alytic finance instruments. Swedish International Development Coopera-
“Denmark has the development goal of pro- tion Agency, which has committed $8.98mn. The
viding clean energy to 5.8mn people in Africa. governments of the US and the UK also affirmed
SEFA has proven that it has the capacity to their continued support for SEFA.
implement innovative renewable energy pro-
jects – even in difficult circumstances. Therefore, SEFA, which is managed by the AfDB, is
Denmark is a close partner with SEFA – and we a special fund providing catalytic finance for
are pleased to be able to continue the work of renewable energy, with the goal of contributing
providing clean energy to all,” said Danish Min- to universal access to affordable, reliable, sustain-
ister for Development Cooperation Flemming able and modern energy services for all Africans.
Møller Mortensen. The Fund was established in 2011 in partner-
Denmark, SEFA’s founding partner and first ship with the Danish government. The govern-
donor, also unveiled $10.65mn in fresh commit- ments of the US, the UK, Italy, Norway, Spain,
ments; it was also announced during the launch Sweden, and most recently Germany and the
that Germany and the Nordic Development NDF are donors.
Fund (NDF) had become SEFA donors in 2020. Notable achievements include the Africa
Germany extended €50mn ($60.97mn) to Renewable Energy Fund, the Facility for Energy
support SEFA’s green baseload activities, which Inclusion and the Green Mini-Grid Market
aim to promote more sustainable baseload Development Programme.
power generation options and prevent countries SEFA has also supported various devel-
from locking themselves into environmentally opers in bringing their projects to fruition
damaging and potentially economically costly and has advised countries on designing inno-
technologies. vative renewable energy and energy access
“Climate change is advancing fast and knows programmes.
no borders, we can only tackle it together and in “I am indeed very proud to observe that
solidarity. For many years, the African Devel- SEFA is a key enabler of the New Deal on Energy
opment Bank is a trusted partner for Germany for Africa, a partnership-driven goal to ensure
and one of the most important driving forces access to affordable, reliable, sustainable and
behind a structured energy transition in Africa,” modern energy for all, launched by the African
said Maria Flachsbarth, Parliamentary State Development Bank in 2016,” said Kevin Kariuki,
Secretary of the German Ministry of Economic African Development Bank vice-president for
Cooperation (BMZ). Power, Energy, Climate and Green Growth.
Week 50 17•December•2020 www. NEWSBASE .com P7
