By Business Insider Reporter
The African Development Bank (AfDB) and the Sustainable Energy Fund for Africa (SEFA) have approved a landmark $40 million equity investment in Project Zafiri, a pioneering platform designed to accelerate decentralised renewable energy (DRE) access for underserved communities across the African continent.
Zafiri is a flagship initiative under Mission 300, which aims to connect 300 million Africans to electricity by 2030.
It represents a major stride toward closing Africa’s energy gap by offering long-term, patient equity capital – precisely the type of financing that the DRE sector critically lacks.
Structured as a Permanent Capital Vehicle (PCV) with a target capitalization of $1 billion, Zafiri will deploy funding in phases, beginning with $300 million split equally between junior and senior equity tranches.
The AfDB will contribute $30 million in senior equity from its balance sheet, while SEFA will provide $10 million in junior equity, which will serve as a catalytic anchor to crowd in private capital into this higher-risk, undercapitalized market.
According to AfDB Vice President Kevin Kariuki, “Zafiri is a catalytic platform that will be an integral component of the Bank’s strategy to accelerate universal access to modern energy in Africa.”
Decentralised Renewable Energy – such as mini-grids and stand-alone solar home systems – offers the fastest and most cost-effective route to electricity access, especially in remote and fragile areas. These systems are modular, scalable, and ideal for Africa’s dispersed populations and geographic challenges. More than 50% of new electricity connections by 2030 are expected to be powered by DRE.
Wale Shonibare, AfDB’s Director for Energy Financial Solutions, Policy, and Regulations, described Zafiri as “the largest patient capital commitment to the African DRE sector to date,” noting its role in unlocking private capital through blended finance.
Zafiri is aligned with AfDB’s broader policy and strategic frameworks, including its Ten-Year Strategy (2024–2033), High 5s Agenda, the New Deal on Energy for Africa, and its Climate Change and Green Growth Policy. It also supports the bank’s Equity Investment Framework and the Private Sector Development Strategy.
By bridging the funding gap for decentralized energy providers, Zafiri is expected to drive both mitigation and adaptation goals, create jobs, stimulate rural economies, and bring Africa closer to achieving universal energy access within this decade. For investors and energy entrepreneurs, Zafiri offers not only capital but a signal of growing institutional commitment to Africa’s clean energy transition—making it one of the continent’s most watched blended finance initiatives in 2025.
