On Friday, 17th of February, 2023, the Africa Go Green Fund (AGGF) announced the close of a second round of fundraising which totaled $47 million in equity and $40 million in debt. The International Finance Corporation (IFC) contributed over half of the fund with $17 million in equity and $30 million in debt.

Additional contributors to the fund include African Development Bank (AfDB), the Nordic Development Fund (NDF), and the Sustainable Energy Fund for Africa (SEFA) who invested $10 million each into the fund, while Calvert Impact Investments committed $10 million in debt to the fund.

 

The Africa Go Green Fund, which was launched by KfW in early 2021, is the first structured debt fund in Africa that aims to provide energy efficient solutions and invest in such initiatives across the continent. The fund is managed by LHGP Asset Management, and targets reaching between $230 million and $250 million at final close – having raised $138 million by early 2023. 

 

AGGF has a history of investing in climate-friendly projects in Africa aimed at reducing greenhouse gas emissions. These funds raised by AGGF have been earmarked to advance climate resilience in Africa in ways that 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.

 

Henrik Elschner Pedersen, IFC Regional Industry Director in Africa for Manufacturing, Agribusiness, and Services Henrik Elschner Pedersen, expressed IFC’s support for the AfricaGoGreen Fund. He said “IFC is partnering with AfricaGoGreen because its innovative energy efficiency-focus 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.”

 

Till date, the AGGF has provided funding for multiple initiatives across Africa that provide clean energy solutions. One of such initiatives is AktivCo that provides clean energy solutions for powering telecommunication towers in Burkina Faso, Cameroon, Chad, Côte d’Ivoire and Niger. And BBOXX, a pay-as-you-go solar-powered solutions provider, to accelerate access to clean cooking solutions for millions of Africans. More initiatives are expected to spring up as they work to advance climate resilience within the continent.

 

We love your feedback! Let us know what you think about IFC’s Investment in the AfricaGoGreen Fund by sending an email to [email protected].

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