African Development Bank’s Sustainable Energy Fund for Africa (SEFA) approves $5 million in grants to set up super energy services companies in three countries

The Sustainable Energy Fund for Africa (SEFA) of the African Development Bank (http://www.AfDB.org) has approved a technical assistance grant of $5.03 million to implement the Africa Super Energy Services Companies (ESCO) accelerator program in Rwanda, Senegal and South Africa.

SEFA is a bank-managed, multi-donor special fund designed to unlock private sector investment in renewable energy and energy efficiency.

Super ESCOs are entities that channel funds towards public sector energy efficiency investments such as hospitals, schools and street lighting, paving the way for private investment. The accelerator program catalyzes private sector investments in energy efficiency through the operationalization of super ESCOs, thereby stimulating the transition towards more sustainable and green economies.

The grant will support the training of a team to operate the super ESCO and will support private ESCOs in the three countries to develop their services under energy efficiency contracts. Private ESCOs provide services to energy users in the design and implementation of energy efficiency options. The funds will also finance the development of harmonized regional certification systems for ESCO enterprises and specialists in the energy services industry, including energy auditors, managers and specialists involved in measuring and verifying energy savings.

“This innovative program will enable Senegal to create a Super ESCO and stimulate the energy efficiency market to increase energy efficiency in the public and private sectors,” said Mr. Saer Diop, Director General of Senegal Agence pour l’Economie et la Maîtrise de l4Energie (AEME), which promotes energy efficiency.

Mohamed Chérif, African Development Bank Country Director in Senegal, said: “Super ESCO is an effective tool that governments can use to leverage private sector resources to improve the energy efficiency of public facilities and other key energy-intensive sectors. I am delighted that Senegal will be one of the first countries to benefit from the accelerator program for African super energy companies.”

The accelerator program paves the way for the successful implementation of downstream energy efficiency investment programs in which the African Development Bank, the Sustainable Energy Fund for Africa and other stakeholders will invest.

Distributed by APO Group on behalf of the African Development Bank (AfDB) Group.

Contact with the media:
Olufemi Terry
African Development Bank Group
[email protected]

Technical contact:
Kevo Luc TOSSOU
Chief Investment Officer/Energy Efficiency Specialist
Energy Efficiency and Clean Cooking Division (PERN2)
[email protected]

About the African Development Bank Group:
The African Development Bank (AfDB) Group is Africa’s leading development finance institution. It is composed of three separate entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Operating in 34 African countries with an external office in Japan, AfDB contributes to the economic development and social progress of its 54 regional member states. More information: www.AfDB.org

About SEFA:
SEFA is a multi-donor special fund that provides catalytic financing to unlock private sector investment in renewable energy and energy efficiency. SEFA offers technical assistance and concessional financial instruments to remove market barriers, build a more robust project pipeline and improve the risk-return profile of individual investments. The overarching objective of the Fund is to contribute to universal access to affordable, reliable, sustainable and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and Sustainable Development Goal 7.