AfDB, Denmark Establish Sustainable Energy Fund for Africa
15 July 2011: The African Development Bank (AfDB) and the Government of Denmark have entered into a technical cooperation agreement to establish a sustainable energy fund for Africa (SEFA). With a budget of US$57 million, the SEFA's objective is to provide technical capacity building and capital for investment to support sustainable energy provision for small and medium enterprises (SMEs) in Africa over a five-year period.
It is expected that the Fund will be a multi-donor fund in the future, and that it will assist the overall purpose of increased economic growth and concomitant employment. The SEFA's funds are intended solely for financing projects with special emphasis on sustainable energy in support of the AfDB's mandates. The creation of the Fund is based on the recognition that Africa's underutilized renewable energy resources, together with technologies becoming more reliable and profitable, create promising market opportunities in Africa. [AfDB Press Release]