The African Development Bank has opened a $20 million funding call for green hydrogen projects across Africa, in a move that could unlock new opportunities for startups and MSMEs operating in the clean energy space.
Announced on April 8 under its Sustainable Energy Fund for Africa (SEFA), the initiative will provide early-stage financing to a select number of high-potential projects, with three to five shortlisted applicants eligible to receive up to $20 million each in pre-investment support, subject to due diligence.
The programme is part of the bank’s broader strategy to accelerate green hydrogen development on the continent, positioning it as both a climate solution and a driver of industrial growth. According to Dr. Daniel Schroth, Director of Renewable Energy and Energy Efficiency at AfDB, green hydrogen offers Africa a pathway to reduce emissions in hard-to-decarbonise sectors while building new value chains that support economic development.
For MSMEs, this presents a significant opening. As the green economy expands, small and growing businesses in renewable energy, infrastructure, logistics, and manufacturing stand to benefit from increased investment flows and participation in emerging supply chains. The programme is specifically structured to help projects move from early development stages to investment readiness—an area where many African ventures often struggle due to limited access to capital and technical support.
The application window will open on April 10, 2026, at 09:30 GMT and close on May 11, 2026, at 17:00 Abidjan time, giving developers a limited window to position their projects for consideration.
Beyond hydrogen itself, the initiative also supports a broader clean energy ecosystem. This includes large-scale renewable energy projects such as solar, wind, hydropower, geothermal, and biomass, which are critical for ensuring stable electricity supply while reducing reliance on fossil fuels. It also extends to green mini-grids—decentralised power systems that are increasingly vital for powering rural and underserved communities, where many small businesses operate.
Energy efficiency is another key focus, with support for technologies and systems that enable smarter energy use across industries and households. For MSMEs, this could translate into lower operating costs, improved productivity, and more sustainable business models.
The timing of the initiative is significant. Across Africa, more than 570 million people still lack access to electricity, creating both a development challenge and a market opportunity. Reliable and affordable power remains a major constraint for small businesses, particularly in sectors like agro-processing, retail, and light manufacturing. Expanding access through renewable solutions could therefore have a direct impact on business growth and job creation.
The funding call also builds on AfDB’s growing track record in clean energy financing. In recent years, the bank has backed multiple renewable energy and climate-focused funds, as well as mini-grid projects aimed at expanding electricity access across the continent. In Nigeria, the Rural Electrification Agency has similarly increased investment in solar mini-grids, underscoring the rising momentum behind decentralised energy solutions.
For many MSMEs, the message is clear: the shift toward clean energy is no longer a distant transition but an active investment space, with real funding opportunities for businesses ready to participate.
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