AfDB, Danish government to set up $57m sustainable energy fund for Africa

The African Development Bank (AfDB) has approved a technical cooperation agreement with the government of Denmark to set up a sustainable energy fund for Africa (SEFA) over a five year period.

The budget for the fund is $57 million, officials say.

The fund, approved by AfDB’s Board of Directors on July 15, 2011, aims at providing technical capacity building and investment capital to support the provision of sustainable energy to Small and Medium Enterprises (SMEs) in Africa.

“This proposal to establish a SEFA demonstrates a strong commitment of the Government of Denmark to support Regional Member Countries through the Bank in addressing the major development challenges towards the achievement of the Millennium Development Goals by 2015,” AfDB said in a statement.

It is intended that SEFA becomes a multi-donor fund as soon as additional donors agree to join, it adds.

By Ekow Quandzie