The AfricaGoGreen Fund (AGGF) has made headlines today 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 $230 million and $250 million at final close. With the current fundraising round, total funding stands at $138 million, demonstrating that the fund is getting traction to reach its full scale.

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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, Côte d’Ivoire 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.

AfricaGoGreen Fund 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,” said 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 region’s 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.