The AfricaGoGreen Fund (AGGF), which invests in renewable energy and energy efficiency projects, has raised an additional $47 million in equity and $40 million in debt to expand its work in Africa.
This second fundraising round brings AGGF’s total funding to $138 million against its target of raising between $230 million and $250 million.
Funding Sources
IFC provided $17 million in equity and committed $30 million in debt to the fund while the African Development Bank, the Nordic Development Fund (NDC) and the Sustainable Energy Fund for Africa each invested $10 million in equity. An additional $10 million in debt from Calvert Impact Capital was closed in December 2022.
“This successful second fundraising demonstrates that the fund is on track to play a crucial part in the just energy transition in Africa,” said Johannes Scholl, Head of Division at KfW.
“AGGF is making critical capital available to businesses that are supporting the region’s energy transformation while also expanding access to electricity, green building, and e-mobility solutions,” said Henrik Elschner Pedersen, IFC Regional Industry Director in Africa for Manufacturing, Agribusiness, and Services.
“We look forward to seeing other like-minded development institutions and commercial investors join us in fighting the detrimental impacts of climate change on the continent,” said Dr. Daniel Schroth, AfDB Director of the Renewable Energy and Energy Efficiency Department.
Henrik Franklin, Director for Portfolio Origination and Management, NDF, said: “Increasing access to clean and affordable energy in Africa is key for achieving the Sustainable Development Goals and enhancing climate resilience. AGGF is promoting energy efficiency, not only through financing but also by strengthening the enabling environment through capacity-building and developing regulations.
About the Fund
Launched by KfW Development Bank in 2021 with support from the German Government, and managed by LHGP Asset Management, AGGF provides loans, guarantees and technical assistance for renewable energy and energy efficiency initiatives.
Its focus areas include purchasing high-efficiency appliances and industrial equipment, retrofitting existing buildings and new green buildings, and installing rooftop solar and battery storage for residential, commercial, and industrial consumers.
The fund also has a technical assistance facility of $3.3 million provided by KfW, which supports project development and market studies, and provides transaction advisory and capacity building to stakeholders.
Key Portfolio in Africa
Among AGGF’s portfolio is financing to AktivCo, a telecom energy services company, to develop clean energy solutions for powering telecommunication towers in Burkina Faso, Cameroon, Chad, Côte d’Ivoire and Niger.
It has also supported BBOXX, a pay-as-you-go solar-powered solutions provider, to accelerate access to clean cooking solutions for millions of Africans. In addition, AGGF has invested in energy-efficient appliances in Kenya, South Africa and Mauritius.