Sustainable Energy Fund for Africa Supports Smaller-Size Renewable Energy and Energy Efficiency Players
After six months of operations, the Sustainable Energy Fund for Africa (SEFA), a joint initiative of the African Development Bank and the Danish government, designed to encourage private investment in small/medium-scale renewable energy and energy efficiency projects in Africa, has built an active pipeline through its project preparation assistance window. This small facility is providing grants to cover up-front development costs for four projects, including an off-grid hybrid solar-hydro installation in Madagascar and a municipal waste-to-energy project in Ghana. Four more projects are about to enter the pipeline and eleven others have been identified as eligible. Additional donors are actively being sought to expand SEFA’s breadth and unlock the potential of this expanding SME market.
SEFA has dedicated considerable time raising awareness of its activities. In the first half of 2012, it hosted three stakeholder workshops in Nairobi, Bamako and Maputo to bring together project sponsors, technical advisors and financiers. SEFA also attended the Africa Venture Capital Association’s annual conference (April 2012) and the first Africa-EU Energy Partnership Forum (May 2012) to showcase and seek feedback on its equity investment activities in private equity funds targeting renewable energy and energy efficiency SMEs.