AGG Provides $5.5 Million Loan to Support Renewable Energy and Clean Cooking Across Africa

Bboxx Capital Ltd, a London-based renewable energy system developer, has obtained a loan of USD 5.5 million from the ‘Africa Go Green Fund for Renewable Energy and Energy Efficiency (AGG) to accelerate the deployment of its solar home systems and clean cooking solution in sub-Saharan Africa. The AGG is an initiative of the German development bank KfW, on the behalf of the German government to promote private investments in clean energy development.

The senior secured medium-term loan will enable Bboxx to continue the deployment of its installment payment solar home systems, which range from photovoltaic installations for agricultural irrigation to domestic smartphone charging, and so on. The fund will also be utilized to develop environment-friendly cooking oven solutions specific to LPG, which it has identified as a significant development factor capable of reducing greenhouse gas emissions.

According to the Africa Go Green Fund, the loan provided to Bboxx will help in reducing annual CO₂ emissions by 760,000 tons, equivalent to the emissions of 150,000 cars driven regularly over a year.

Clemens Calice, Portfolio Manager for AGG, said, “We are tremendously pleased to be able to support Bboxx’s ambitions to tackle the environmental and health issues arising from using firewood and charcoal for cooking. This transaction demonstrates how combating climate change requires multiple approaches. AGG has been created to support Africa’s most innovative companies with tailored and flexible capital.”

Mansoor Hamayun, CEO and co-founder of Bboxx, mentioned it is highly important to accelerate the provision of clean energy for all, as the effects of climate continue to gather at pace. This is more applicable for the areas where a significant percentage of people are living without access to electricity or clean cooking facilities. Bboxx is delighted that the loan will enable them to boost the delivery of affordable, sustainable, and clean electricity as well as cooking solutions across Africa. 

Hamayun also added that their company is immensely thankful to AGG for their support and recognition of the importance of Bboxx’s endeavors, forming part of their extensive mission to transform lives and unlock potential in Africa as well as in developing countries.

Operating in several African countries, Bboxx offers equipment and energy management solutions based on the pay-as-you-go (PAYG) model, which allows off-grid low-income households to buy renewable energy equipment on the basis of affordable credit plans.