The African Development Bank’s Board of Directors has approved a $40 million equity investment in Project Zafiri, a transformative equity platform developed under Mission 300, which aims to connect 300 million people to electricity across Africa by 2030. This strategic investment is designed to accelerate the deployment of Decentralized Renewable Energy (DRE) solutions, particularly in underserved and rural communities across the continent.
Zafiri, co-developed by the African Development Bank, World Bank Group, and other partners, targets the critical shortage of patient, long-term equity capital in the DRE sector. By addressing this financing gap, the initiative aims to de-risk investments and scale clean energy solutions such as mini-grids and solar home systems, which are more adaptable, modular, and cost-effective than traditional centralized energy systems—especially in remote or fragile regions.
The platform is structured as a Permanent Capital Vehicle (PCV) with a total capitalization goal of $1 billion, to be raised in phases. Phase 1 targets $300 million in commitments, split equally between junior and senior equity. The junior equity portion is designed to catalyze private investment by absorbing higher risk and attracting commercial capital to the underfunded DRE market.
The African Development Bank’s $40 million commitment includes $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. This combined investment represents the largest patient capital commitment to the African DRE sector to date. According to Bank officials, Zafiri demonstrates how blended finance structures can effectively unlock private sector participation while ensuring inclusive, climate-resilient energy access.
Zafiri also aligns with several strategic frameworks of the African Development Bank, including its Ten-Year Strategy (2024–2033), 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. Additionally, it supports the Bank’s Climate Change and Green Growth Policy, Private Sector Development Strategy (PSDS), and Equity Investment Framework. As a pioneering blended finance model, Zafiri marks a major step toward achieving universal energy access, while contributing to both climate mitigation and adaptation goals across the continent.
