African Development Bank backs renewable-energy mini-grids in 14 fragile African markets
The African Development Bank Group has approved $5.65 million to support an $11.3 million financing facility designed to expand renewable-energy mini-grids across 14 fragile and energy poor African countries.
The Sustainable Energy Fund for Africa (SEFA) grant will be matched by the Nordic Development Fund, creating the Peace Renewable Energy Certificate (P-REC) Aggregation Facility. The initiative will use revenues from renewable energy certificates to provide upfront financing for mini-grid projects that face difficulties securing conventional commercial capital.
Managed by Camco Clean Energy and Energy Peace Partners, the facility will enter long-term agreements with eligible mini-grid developers and provide advance payments in exchange for rights to certificates generated by their renewable energy projects. The certificates can subsequently be sold to corporate buyers seeking to support renewable energy and sustainability initiatives.
The programme will target Burundi, Central African Republic, Chad, Democratic Republic of Congo, Ethiopia, Liberia, Mali, Niger, Nigeria, Sierra Leone, Somalia, South Sudan, Sudan and Uganda.
The facility is expected to support about 240,000 new electricity connections and add 71 megawatts of renewable energy capacity, potentially extending reliable electricity access to approximately 856,000 people.
The financing model is intended to address a persistent challenge in Africa’s energy sector, where mini-grid projects in fragile and conflict affected markets often struggle to attract investment because of political, currency, operational and revenue risks.
By aggregating projects and introducing certificate revenues, the facility aims to improve project liquidity while reducing reliance on conventional debt and equity financing.
The initiative is aligned with Mission 300, the African Development Bank and World Bank programme targeting electricity access for 300 million Africans by 2030. Its performance will ultimately depend on the ability of certificate revenues to attract additional capital, the availability of corporate buyers and the successful development and operation of mini-grid projects in the targeted markets.
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