Germany pledges 100 million euros to SEFA to unlock private investments in renewable energies
The German government will contribute € 100 million to the African Development Bank’s Sustainable Energy Fund for Africa (SEFA), affirming its commitment to make efforts to harness Africa’s renewable energy potential and promote its transition to clean energy sources.
The announcement came during the United Nations High-Level Dialogue on Energy, which was held in New York on September 24 as part of the United Nations General Assembly.
The funding will be used to unlock private sector investments in green grassroots projects, a priority objective of SEFA. More specifically, it will support technical assistance and investments in the production, transmission and distribution of electricity to increase the penetration of renewable energy in African grids. The funding follows Germany’s initial SEFA contribution of € 50 million, paid in 2020.
Norbert Barthle, Parliamentary State Secretary of the German Ministry for Economic Cooperation and Development, told the High Level Dialogue: “We need to accelerate the global energy transition. This requires the rapid phase-out of all fossil fuels and a massive expansion of renewable energies. energy. Now is the time to act.”
The funding aligns with the G20 Pact with Africa launched during Germany’s tenure as G20 presidency. The Compact promotes macroeconomic, trade and financial reforms to attract more private investment to Africa.
Dr Daniel Schroth, the Bank’s Acting Director for Renewable Energy and Energy Efficiency, said: “Germany’s new contribution is a major boost towards SEFA’s capitalization target of $ 500 million. transition and support solutions for access to clean energy. ”
SEFA is a special multi-donor fund that aims to unlock private sector investments that contribute to universal access to affordable, reliable, sustainable and modern energy services for all in Africa, in line with the Bank’s strategy on Energy for Africa and Development Goal 7. SEFA received contributions from the governments of Denmark, Germany, Italy, Norway, Nordic Development Fund, Sweden, Spain, from the United Kingdom and the United States.