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Sustainable development

AfricaGoGreen Fund Secures $47 Million for Climate-Friendly Projects in Africa

Strategic Insights

— 2 min read

The AfricaGoGreen Fund (AGGF) has achieved a significant milestone with the announcement of its successful second fundraising close, securing $47 million in combined investments from top financial organizations. The funding will enable the AGGF to broaden its financing for climate-friendly projects in Africa, including the purchase of 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 IFC provided $17 million in equity, while the African Development Bank, the Nordic Development Fund, and the Sustainable Energy Fund for Africa each invested $10 million in equity.

Key Takeaways:

  • The AfricaGoGreen Fund (AGGF) secured $47 million in combined investments from top financial organizations, including the International Finance Corporation (IFC), the African Development Bank (AfDB), the Nordic Development Fund (NDF), and the Sustainable Energy Fund for Africa (SEFA).
  • The funding will allow AGGF to broaden its financing for climate-friendly projects in Africa, including 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.
  • IFC provided $17 million in equity, which includes financing from the IDA20 Private Sector Window Blended Finance Facility.
  • In addition to equity, IFC committed $30 million in debt to the fund, providing AGGF with long-term capital to complete the second close fundraise.
  • The African Development Bank, the Nordic Development Fund, 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.
  • AGGF is accompanied by a technical assistance facility of $3.3 million from KFW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), which supports project development and market studies.
  • AGGF has provided financing to AktivCo, a telecom energy services company, and BBOXX, a pay-as-you-go solar-powered solutions provider, among other transactions.

Statistics:

  • Total funding of $138 million, with a target of $230 million to $250 million at final close.
  • $47 million in combined investments from top financial organizations.
  • $17 million in equity from the International Finance Corporation (IFC).
  • $30 million in debt from the International Finance Corporation (IFC).
  • $10 million in equity from the African Development Bank, the Nordic Development Fund, and the Sustainable Energy Fund for Africa each.
  • $10 million in debt from Calvert Impact Capital.
  • $3.3 million in technical assistance from KFW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

Sources:

  • International Finance Corporation (IFC)
  • African Development Bank (AfDB)
  • Nordic Development Fund (NDF)
  • Sustainable Energy Fund for Africa (SEFA)
  • Calvert Impact Capital
  • KfW on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ)
  • LHGP Asset Management
  • AktivCo
  • BBOXX

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