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)
ABIDJAN, Ivory Coast, July 18, 2025/APO Group/ --
The Board of Directors of the African Development Bank (www.AfDB.org) has approved a $40 million equity investment in Project Zafiri, a transformative equity platform and flagship initiative under Mission 300 (https://apo-opa.co/4m1ve7m). This investment will accelerate the expansion of renewable energy access across Africa.
The African Development Bank (AfDB) and Sustainable Energy Fund for Africa (SEFA) provide $40 million investment in equity platform Zafiri to accelerate 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 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.
“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. With just five years remaining to reach Mission 300’s goal of additional 300 million connections by 2030, this initiative provides a timely and innovative solution to scale private capital for impact,” noted Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank.
Wale Shonibare, Director for Energy Financial Solutions, Policy, and Regulations, described Zafiri as the largest patient capital commitment to the African DRE sector to date. He said it exemplifies how structured blended financing can unlock commercial capital while delivering inclusive, climate-resilient energy access across the continent.
Project Zafiri will address the lack of longer-term equity that is constraining the growth of the DRE sector in Africa, Daniel Schroth, Director for Renewable Energy and Energy Efficiency, said, adding that by anchoring the junior equity tranche, SEFA is helping to crowd in private investment at scale.
Zafiri aligns with the Bank’s Ten-Year Strategy (2024–2033) to promote private investment in energy infrastructure, the High 5s, particularly Light Up and Power Africa, Industrialize Africa, and Improve the Quality of Life for the People of Africa, and the New Deal on Energy for Africa. It also contributes to both mitigation and adaptation goals under the Bank’s Climate Change and Green Growth Policy and Strategy and supports the objectives of SEFA and the Private Sector Development Strategy (PSDS) to mobilize equity for clean energy and energy efficiency investments. Zafiri also aligns with the Bank’s Equity Investment Framework and represents a pioneering approach to blended finance in Africa’s energy transition and a critical step toward achieving universal energy access.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Somaliland has been a peaceful country for the last 20 years look where that got us so far no recognition and worst the international community only cares about chaotic Somalia. Thw world enjoys the horor show when people kill each other die of hunger and natural disasters like in Haiti that is the only time the world gives a damn about a small country somehwere in Africa. For the world to notice Somaliland the Somalilanders need to do drastic things to be noticed, like invade Somalia and take over the whole hell hole and force them to recognise Somaliland that I believe is the only solution left since thus far all what the world gave SL is a deaf ear
Elmi get real brother, use common sense..I feel your pain, but you don't right wrong with wrong. We dont want to harm our brothers in order to achieve some thing we can achieve through negotiotion and patience. God is our witness and the Almight will eventually reward us, so long as we do the right thing as we have done for so long. peace and perceverence
To Elmi :
as someone who waits the moment the international community act differenty on the Legitimate Quest for Somaliland, but in the meantime I dont loose hope thats why we been patient over 20 years so now its the time for bickering and loosing hope, so yes we suffered from the South too much that we all remember but we will not resemble them by any means, it's not me who saying that but Ibrahim Egal that has spoke about the Mentality of the Somaliland people are different, and deserves to be the best to represent the African History.
The only reason that Somaliland is at peace is because of its people the political classes are leaches , they work not for the people but for the businessmen who create no wealth no jobs but take what little is sent by the Diaspora and remove it from circulation and into the buckets of fake medicine and good manufacturers, having said that not everyone is leaches and there are those who are trying hard but saying Somaliland had establish credible political institutions is misconceived just because we are more fortunate then Somalia (thanks to all) and there is less foreign interference coupled with working traditional Somali conflict resolution which is based in the clan system which unfortunately was destroyed in the south by the Italian colony does not mean we are any different. Let hope they will also learn to live in peace together because if your neighbour’s house is on fire there is a likely hood that your house might catch fire