A new SEFA call will provide up to $20 million in reimbursable grants for 3 to 5 mature private-sector projects supporting green hydrogen development across Africa.
SEFA opens a new funding window for green hydrogen in Africa
Italy’s Ministry of the Environment and Energy Security, MASE, has announced the launch of a $20 million call for proposals targeting strategic projects linked to the development of green hydrogen in Africa.
The call, promoted by the Sustainable Energy Fund for Africa, SEFA, under the Africa Green Hydrogen Programme, AGHP, is aimed at private-sector players seeking support for key activities such as feasibility studies, advanced design and the structuring of commercial agreements.
Funding will be allocated to a limited number of initiatives, between 3 and 5 projects, through a reimbursable grant mechanism. This means the support must be repaid once the project reaches financial close. The model is designed to back the riskiest stage of project development while also improving bankability.
Applications must concern mature projects located in African Development Bank member countries. The deadline for submission is 11 May 2026 at 17:00 Abidjan time, while clarification requests can be submitted until 20 April 2026.
How the financing model works
The financing mechanism under the programme is based on reimbursable grants, a tool that sits between a pure grant and traditional project finance. In this case, funding is provided during the early stages of a project, when risk is highest and access to credit is usually more difficult.
Repayment is conditional on the project reaching financial close. This approach helps reduce risk for private investors while also improving the effectiveness of available public resources.
Eligible activities include high-value strategic work such as technical studies, engineering design, market analysis and the definition of commercial agreements. The goal is to build a pipeline of robust projects ready to attract capital at a larger scale.
What SEFA is
The Sustainable Energy Fund for Africa is a multi-donor special fund managed by the African Development Bank, with the aim of mobilising private investment in renewable energy and energy efficiency.
Established in 2011, the fund has received contributions from several countries, including Denmark, the United States, the United Kingdom, Italy, Norway, Spain, Sweden and Germany, as well as from international organisations such as the Nordic Development Fund and the Global Energy Alliance.
Its core mission is to advance universal access to sustainable energy services, in line with Goal 7 of the Sustainable Development Goals. To do so, SEFA works across three strategic areas: increasing the share of renewables in power systems, supporting mini-grid development and improving energy efficiency.
Through instruments such as technical assistance and concessional finance, the fund helps overcome market barriers and improve the risk-return profile of projects, making them more attractive to investors.
The Africa Green Hydrogen Programme
The Africa Green Hydrogen Programme is one of the most targeted initiatives supporting the development of the hydrogen sector on the continent. Initially funded by the German government, the programme is designed to support high-value project development activities in green hydrogen in Africa and its derivatives.
Its focus is on the pre-investment stage, often seen as the main bottleneck for large-scale energy projects. In this context, financial support helps prepare solid, bankable projects capable of attracting industrial-scale capital, a challenge that matters across Sub-Saharan Africa as much as in more established energy markets.
The initiative comes within a complex energy landscape, where more than 570 million people in Africa still lack access to electricity, highlighting the still untapped potential of renewable energy across the continent.
SEFA 2.0 and the wider sustainable energy strategy
The SEFA 2.0 programme expands the fund’s work through two operational pillars: concessional investment and technical assistance.
Its investment tools include equity, loans and reimbursable grants, all designed to reduce financial risk and make private-sector participation easier. Technical assistance, meanwhile, supports project preparation, from early analysis to the design of regulatory frameworks.
This integrated approach has already helped advance significant initiatives in the sector, including mini-grid programmes and continent-wide renewable energy financing platforms.
Overall, the new call dedicated to green hydrogen in Africa fits into a broader sustainable energy strategy aimed at strengthening project development capacity and accelerating the rollout of low-emissions technologies across Africa.
