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The Board of Directors of the African Development Bank (AfDB) 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 AfDB, World Bank Group and other partners – aims to address the critical shortage of patient, longer-term equity capital needed to de-risk and scale Decentralised Renewable Energy solutions (DRE) for underserved communities across the continent.
Decentralised Renewable Energy is the fastest, most cost-effective, and sustainable way to expand electricity access in rural Africa. Unlike centralised 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 decentralised 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 capitalisation 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, undercapitalised 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, Industrialise 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 mobilise 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.
