📋 Tender Overview
The AfricaGoGreen Fund AGGF has made headlines with the announcement of its successful second fundraising close securing 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.Launched by KfW on behalf of the German Federal Ministry for Economic Cooperation and Development BMZ in early 2021 and managed by LHGP Asset Management AGGF is the first structured debt fund in Africa focused on energy efficiency solutions. The fund targets reaching between US230 million and US250 million at the final close. With the current fundraising round total funding stands at US138 million demonstrating that the fund is getting traction to reach its full scale.AGGF is accompanied by a technical assistance facility of 3.3 million from KFW on behalf of BMZ which supports project development and market studies and provides transaction advisory and capacity building to stakeholders. Fully operational since 2021 AGGF has provided financing to AktivCo a telecom energy services company to develop clean energy solutions for powering telecommunication towers in Burkina Faso Cameroon Chad Cte dIvoire and Niger and to BBOXX a pay-as-you-go solar-powered solutions provider to accelerate access to clean cooking solutions for millions of Africans.AGGF has also more recently closed the Solarise transaction investing in energy-efficient appliances in Kenya South Africa and Mauritius and upsized both the AktivCo and BBOXX transactions.KfW is glad to welcome the new investors to the AfricaGoGreen Fund which was initiated with seed capital from the German Government. We hope that more like-minded investors will follow. This successful second fundraising demonstrates that the fund is on track to play a crucial part in the just energy transition in Africa Johannes Scholl Head of Division at KfW.IFC is partnering with AfricaGoGreen because its innovative energy efficiency focus is making critical capital available to businesses that are supporting the regions energy transformation while also expanding access to electricity green building and e-mobility solutions said Henrik Elschner Pedersen IFC Regional Industry Director in Africa for Manufacturing Agribusiness and services.With great pride the African Development Bank and the Sustainable Energy Fund for Africa united other investors with the same ambition to build a more climate-resilient Africa and support the decarbonization of African countries. We look forward to seeing other like-minded development institutions and commercial investors join us in fighting the detrimental impacts of climate change on the continent. Dr. Daniel Schroth Director of the Renewable Energy And Energy Efficiency DepartmentHenrik Franklin Director for Portfolio Origination and Management at Nordic Development Fund said Increasing access to clean and affordable energy in Africa is key for achieving the SDGs and enhancing climate resilience. AGGF is a trailblazing initiative to promote energy efficiency not only through financing but also by strengthening the enabling environment through capacity-building and developing regulations Franklin said.PDF is a proud early-stage and catalytic investor in AGGF and looks forward to joining forces with AfDB KfW IFC SEFA Lions Head and other partners to deliver climate actionWith AGGF we are breaking new ground in supporting the African climate transition. The urgency of combatting global warming forces all of us to leave no stone unturned to reduce C02 emissions. This is precisely what AGGF has been set up to do. Having such a strong group of investors shows broad alignment on the objectives of AGG. We are proud to be given the opportunity to meet the tasks and challenges ahead of us Clemens Calice CEO of LHGP
