Funding Database

Sustainable Energy Fund for Africa (SEFA)

A multi-donor trust fund administered by the African Development Bank to support small- and medium-scale Renewable Energy (RE) and Energy Efficiency (EE) projects in Africa. Supports project preparation, equity investments, underwriting and enabling environment support.

SEFA provide grants and technical assistance resources to bring viable Renewable Energy and Energy Efficiency projects to bankability to enable financing from AfDB and/or other Development Finance Institutions, commercial banks and other sources of debt or equity financing.

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Geographical Focus

Africa

Technology/Sector Focus

  • Small Hydro
  • Geothermal
  • Wind
  • Solar
  • Biomass
Size of Investment
$1-3M
Target Return
N/A
Total Fund Size
$60M
Fund Structure
Open

General Fund Information

Type of Investment

Grant or Equity

Investors of Fund

AfDB, Danish Government, Unites States

Fund Information

Size of Investment

$1-3M

Fund Structure

Open

Target Return

N/A

Sample Investee

Financed technical feasibility study in hybrid Solar/Hydro off-grid 8MW project in Madagascar.

Additional Project Characteristics

Funding of early stage opportunity analysis and project development.

Additional FMC Info

Network/Partners

AfDB, European DFIs, SE4ALL Initiative

Location of Registration and HQ

Abidjan, Cote d’Ivoire

Primary Contact Information For Developers

AfDB Secretariat:

João Duarte Cunha
SEFA Coordinator, Energy, Environment and Climate Change Dept.
j.cunha@afdb.org

Resource Mobilization Focal Point:

Serign Cham
Principal Resource Mobilization Officer
s.cham@afdb.org

Types of Financing

Equity

Equity investment window is available for Private Equity/Venture Capital funds which provide direct investment and business development support to SMEs in the renewable energy and energy efficiency value chain.

Technical Assistance / Grants

SEFA can provide grants of up to $1 million USD to cover up-front development costs, from pre-feasibility studies and PPP preparation to assistance in achieving financial close. Support is only available for project preparation activities up to financial close. Proposed project’s sponsor is a privately-owned or is a PPP.

Debt Mezzanine

N/A

Guarantee / Insurance

N/A

Requirements for Financing

Project Requirements

The total project size should be between $30-200M. The project must be implemented in an AfDB Regional Member Country.

Developers will be expected to provide at least 30% of the total pre-investment costs.

State-owned utilities are not eligible for direct support.

Details for Funding Requests to SEFA

 

CO-Funding Requirements

Projects should be sponsored by private sector or public sector agencies where the final project is to be an Independent Power Producer (IPP) or Public-Private Partnership (PPP).

Target Impact

Mobilizing resources and financing the development of renewable energy projects in Africa.

Due Diligence Requirements

The proposal should follow the SEFA guidelines requesting information on: project parameters (e.g. description of the project and company track record) and project status
(e.g. current stage of the business plan, pre-feasibility studies, licenses and permits, project design, E&S Impact Assessments, etc.), and will then follow a process within AfDB.

Detailed Description Of Funding Process Procedure

All proposals received will be screened and pre-assessed against the basic eligibility criteria by the SEFA Secretariat, housed in the Energy, Environment and Climate Change Department (ONEC) of AfDB.

The SEFA Secretariat will submit best proposals to the ONEC Management Team in the form a Project Evaluation Note (PEN) for a first assessment of the project and clearance for the pipeline.

Following ONEC management clearance, the project sponsors and the Bank Task Manager will prepare a Grant Request that shall be peer reviewed and later presented to a Technical Committee (TC).

Proposals up to USD 1 million are recommended for approval at the Vice President level. Grants exceeding the equivalent of USD 1 million are transmitted for approval to SEFA Oversight Committee and the AfDB Board of Directors. The turnaround period is estimated at three to six months but can vary depending on the proposals and the project proponent’s ability to meet the information requests from AfDB throughout the process.

The application for grant request can be submitted via Email (sefa@afdb.org)