AfDB, SEFA Invest $40m in equity platform Zafiri to lift renewable energy access across Africa

The Board of Directors of the African Development Bank has approved a $40 million equity investment in Project Zafiri, a transformative equity platform and flagship initiative under Mission 300. This investment will accelerate the expansion of renewable energy access across Africa.

Zafiri – jointly developed by the Bank, World Bank Group and other partners – aims to address the critical shortage of patient, longer-term equity capital needed to de-risk and scale Decentralized Renewable Energy solutions (DRE) for underserved communities across the continent.

Decentralized Renewable Energy is the fastest, most cost-effective, and sustainable way to expand electricity access in rural Africa. Unlike centralized grids, DRE solutions—such as mini-grids and stand-alone solar home systems—can be deployed quickly and affordably, even in remote or fragile areas.

Under Mission 300, which aims to connect an additional 300 million people to electricity by 2030, DRE will play a central role in ensuring no community is left behind. These decentralized systems are modular, scalable, and well-suited to the continent’s dispersed populations and geographic challenges. More than half of all new electricity connections by 2030 are expected to come from DRE.

Zafiri is structured as a Permanent Capital Vehicle with a targeted capitalization of $1 billion, raised through a phased approach. Phase 1 targets $300 million in total commitments, equally split between junior and senior equity, with junior equity serving as a key catalyst to crowd-in the private sector in this higher-risk, undercapitalized market.

The African Development Bank’s $40 million contribution consists of $30 million in senior equity from its balance sheet and $10 million in junior equity from the Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund managed by the Bank.