Africa Launches $3 Billion Energy Efficiency Facility to Tackle Power Gaps

Africa has taken a decisive step toward addressing one of its most persistent challenges — energy inefficiency — with the launch of the Africa Energy Efficiency Facility (AfEEF), a landmark initiative aimed at mobilising $3 billion to improve access, reduce waste, and promote sustainable energy use across the continent.

The AfEEF, a legacy project of South Africa’s G20 presidency, was officially launched in Durban ahead of the G20 Energy Transitions Working Group (ETWG) meetings. The facility is designed to become a continental platform for financing, policy coordination, and innovation in energy efficiency — a sector that experts describe as Africa’s “first fuel” for growth and development.

Mobilising $3 Billion for an Efficient Energy Future

Speaking at the launch, Deputy Minister for Electricity and Energy, Samantha Graham-Maré, said the facility responds to a crisis that has left millions of Africans without reliable electricity and clean cooking solutions.

“Energy inefficiencies in Africa have reached levels of up to 60% in some areas,” she said. “The Africa Energy Efficiency Facility is a response to this urgent need. It will mobilise finance at scale, harmonise policies, build technical capacity, and promote digital innovation.”

The AfEEF seeks to:

• Mobilise $3 billion by 2030 to finance large-scale energy efficiency projects;

• Support African Union (AU) Member States in developing harmonised policies and regulations;

• Build technical capacity in public institutions and regional organisations;

• Promote digitalisation through tools such as energy management systems and appliance databases.

Graham-Maré stressed that energy efficiency is not merely about saving energy, but about stimulating inclusive growth.

“Energy efficiency is our first fuel. It is the fastest, cheapest, and most sustainable way to close the gap between energy demand and supply. It is about creating opportunities for growth, jobs, and better lives for all,” she said.

Projected Impact: Jobs, Growth, and Cleaner Air

According to projections shared during the launch, the AfEEF could improve Africa’s energy efficiency by at least 12% by 2030 and create one million green jobs by 2040.

The initiative is also expected to:

• Avoid the need for up to 40 gigawatts of new generation capacity, saving billions in infrastructure investment;

• Reduce greenhouse gas emissions by 300 million tonnes of CO₂;

• Strengthen industrial productivity through lower energy costs and improved energy security.

Graham-Maré described the initiative as not only a technical and economic solution, but also a human rights imperative.

“This is not just a technical problem. It affects the health of our children, the productivity of our industries, and the dignity of our households. Without addressing these inefficiencies, we cannot unlock Africa’s full potential.”

A Continental Collaboration

The AfEEF is a joint initiative between the South African Department of Electricity and Energy, the African Union Commission (through the African Energy Commission – AFREC), and the United Nations Environment Programme (UNEP).

It aligns closely with:

• The African Union’s Agenda 2063 for sustainable growth;

• The African Energy Efficiency Strategy; and

• The UN Sustainable Development Goals (SDGs) 7 and 13, focusing on clean energy access and climate action.

The foundations for AfEEF were laid during the second and third G20 ETWG meetings held in South Africa’s Western Cape and North West provinces earlier this year, where delegates from G20 nations and African energy bodies discussed frameworks for global cooperation on sustainable energy transitions.

Partnerships for a Sustainable Energy Transition

The Deputy Minister emphasised that the success of the AfEEF depends on strong partnerships across public, private, and civil society sectors.

“A facility is only as strong as the partnerships that sustain it,” she said. “We call upon AU Member States to integrate AfEEF objectives into national strategies, our development partners to invest and share expertise, our private sector to build markets and create jobs, and our civil society to ensure accountability and innovation.”

She added that the initiative represents Africa’s unity and determination to lead its own energy future.

“AfEEF is a symbol of Africa’s resolve. It signals to our citizens, partners, and the world that Africa is ready to take charge of its energy future and act together — decisively and ambitiously.”

Human-Centred Energy Transformation

In an impassioned address, Graham-Maré framed energy efficiency as a human imperative, not just an economic policy.

“It is about the mother who should not cook over smoky firewood, the student who deserves light to study at night, and the entrepreneur who needs reliable power to grow a business. The Africa Energy Efficiency Facility is our promise to them — that we will not stand still while millions remain in the dark.”

Building Africa’s “First Fuel” Economy

Energy experts at the launch hailed the AfEEF as a transformational initiative that will shift the continent’s energy narrative from scarcity to sustainability. By prioritising efficiency over expansion, Africa could significantly reduce its dependence on fossil fuels, lower carbon emissions, and accelerate the adoption of renewable technologies.

The energy efficiency sector also represents a major economic opportunity. According to analysts, every $1 invested in energy efficiency yields up to $4 in economic returns, including reduced energy costs, job creation, and improved health outcomes.

Aligning With Global Climate Goals

The AfEEF also supports the Paris Agreement objectives by enabling African countries to meet their Nationally Determined Contributions (NDCs). By focusing on energy conservation and cleaner systems, the initiative strengthens Africa’s position in global climate negotiations and enhances access to green finance mechanisms.

Looking Ahead

The launch of the Africa Energy Efficiency Facility signals a new era of cooperation between African nations, development partners, and the private sector. It embodies the continent’s determination to build resilience, achieve energy security, and promote inclusive economic growth.

“Together, let us make AfEEF not just an initiative, but a movement — one that lights up homes, powers industries, and gives our children a cleaner, safer, more prosperous Africa,” Graham-Maré concluded.