The Africa Go Green Fund (AGGF) has announced the successful completion of its second financial mobilization. The financial mechanism which invests in renewable energy and energy efficiency projects has secured $47 million in the fundraising round from top financial organizations.
AGGF will utilize the funds to finance climate-friendly projects in Africa. The funds were raised from several development partners, including the International Finance Corporation (IFC), Sustainable Energy Fund for Africa (SEFA), African Development Bank (AfDB), and Nordic Development Fund (NDF).
IFC, the World Bank’s private sector financing arm, has invested $17 million in equity. This amount of funding includes financing from the IDA20 Private Sector Window Blended Finance Facility. The SEFA, AFDB, and NDF each invested $10 million in equity. These investments are accompanied by previous debt, including $30 million from the IFC and $10 million from Calvert Impact Capital, a US-based impact investor.
The funding will enable AGGF to broaden its financing projects in Africa, which include buying high-efficiency appliances, retrofitting new green buildings, and installing rooftop solar PV with battery storage for residential and C&I customers. Since its inception in 2021, AGGF has invested in several clean energy projects including Activo’s solar PV solutions for telecom towers, Bboxx’s clean cooking solutions, Solarise’s energy-efficient appliances, etc.
Johannes Scholl, Head of Division at KfW, said the second fundraising from the strong group of investors demonstrates that the Africa Go Green Fund is right on the path of playing a vital role in the just energy transition in Africa.
Henrik Elschner Pedersen, an IFC’s Regional Industry Director in Africa, said the global development firm has partnered with the AGGF as it is focused on making critical capital available to businesses that are expanding access to clean electricity, green building, and e-mobility solutions.
Henrik Franklin, Director for Portfolio Origination and Management at NDF, commented, “Increasing access to clean, reliable, and affordable energy in Africa is key for achieving the sustainable development goals and enhancing climate resilience.”
According to Clemens Calice, CEO of LHGP Asset Management (the fund manager of AGGF), the urgency of combatting global warming and climate change pushes all of us to leave no stone unturned in reducing greenhouse gas emissions. Along with the investors, LHGP has the common ambition of building a more climate-resilient Africa.
