AfricaGoGreen Fund to provide $30m for sustainable development investment

The African Development Bank and the Bank’s Sustainable Energy Fund for Africa (SEFA) have approved a combined-equity investment of $30 million in the AfricaGoGreen Fund, a debt fund established to promote private investments in energy-efficient technologies and business models, with the objective of decarbonising African economies and accelerating the energy transition.

These new investments come on top of an $11.5 million equity contribution approved by the Nordic Development Fund (NDF) in December 2021. NDF provides financing to climate change mitigation and adaptation activities within the nexus of climate change and development.

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NDF is also a donor to SEFA, thus reinforcing the close partnership to advance the transition to cleaner and greener solutions for the continent while encouraging the participation of the private sector.

“This combined Bank investment will lead to increased financing of emerging projects and businesses in the areas of industrial appliances, electric mobility and green buildings, which are key to the decarbonisation of African economies and to a just energy transition,” said Dr Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth.

“Achieving the climate goals and universal access to clean and affordable energy will require vast investment in energy efficiency and, more broadly, in electrification and other sector coupling trends. By targeting these emerging sectors in Africa, AGGF complements our climate and energy access portfolio, and is aligned with our strategic role as an early-stage catalytic investor,” said Henrik Franklin, NDF Director for Portfolio Origination and Management.

Launched in early 2021 with €45 million ($49,172,175) in catalytic capital, the AfricaGoGreen Fund is a flagship project under the G20 Compact with Africa.

“These new investments are also expected to trigger additional investments by commercial investors and financiers either directly or through co-funding of projects,” said Jan Martin Witte, Director Global Equity and Funds for KfW Development Bank.

Clemens Calice, Co-CEO and founding partner of Lion’s Head Global Partners said the fund would take efforts to transition to a lower-carbon economy a step further by offering to finance to innovative African companies that embrace energy efficiency as a challenge and an opportunity.

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