Portfolio Partner Profile
Africa Go Green Fund
The Africa Go Green Fund (AGG) is a debt financing platform with the objective to spur additional anthropogenic greenhouse gas (GHG) reductions in Africa by providing debt and technical assistance to corporate and industrial entities, local financial institutions, and other partner institutions that develop and/or invest in eligible energy efficiency and renewable energy projects. AGG is determined to push boundaries by providing capital that is tailored to the needs of businesses willing to address climate change head-on.
In addition, the Fund’s work contributes to the long-term climate change objectives of the Paris Agreement. Thus, AGG’s sustainable investment goals fall within the scope of the Sustainable Financial Disclosure Regulation’s article 9, which is achieved if a fund has sustainable investment or a reduction in carbon emissions as its objective.
AGG pursues the following impact goals:
Fostering energy efficiency and increasing renewable energy production by extending loans and mezzanine instruments dedicated to finance energy solutions predominantly via direct investments to private sector clients (focusing on MSME’s micro, small and medium enterprises);
Catalyzing local financial sector to finance private sector investments in energy efficiency and renewable energy by demonstrating the commercial viability of green finance predominantly via guarantees and guarantee-type products;
AGG’s investment activities have a direct contribution to SDGs 7 (Affordable and Clean Energy), 9 (Industry, Innovation, and Infrastructure) and 13 (Climate Action), in addition to other secondary SDGs including SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth) and SDG 17 (Partnerships for the Goals).
The Fund also recognizes that expanding the involvement of women in the economy accelerates economic growth in developing countries and is committed to actively seeking out opportunities to apply a gender lens to its investment activities. AGG aims to pursue activities that will lead to a greater integration of women and women’s interests in the way they finance energy efficiency and renewable energy projects.
AGG invests across five main sub-sectors which include green transportation, green buildings, green appliances, industrial energy efficiency and renewable energy. AGG also provides technical assistance aimed at maximizing learning-by-doing opportunities, facilitating deals, and encouraging the long-term sustainability of the energy efficiency and renewable energy market in Africa.
The Fund was initiated by KfW (on behalf of the German Government), a German state-owned investment and development bank, and is managed by Lion’s Head Asset Management.
Featured Impact Story
Bboxx provides reliable power to small business owners
Bboxx, a next generation utility, is an industry leader and global pioneer of Pay-As-You-Go solar home systems and clean cooking stove solutions. The organization works across the Democratic Republic of the Congo, Rwanda, Togo, Kenya, Nigeria, and Burkina Faso, improving the accessibility of clean cooking and solar home systems to low-income households. Africa Go Green’s (AGG) loan will help provide accessible commercial solutions to address complexities with distribution and limited customer purchasing power. AGG’s support will contribute to the mitigation of an estimated 760,000 tons of CO2, the equivalent of 150,000 passenger cars driven regularly for a year.
Watch the video below to learn more about how Bboxx's products help Chikuru and Erick: