The advancement of climate resilience in Africa has received a boost as the Africa Go Green Fund (AGGF) recently raised $87 million. LHGP Asset Management oversees the AGGF and channels the funds towards projects in Africa that mitigate greenhouse gas emissions. The AGGF received $47 million in equity and $40 million in debt from several institutions, including the International Finance Corporation (IFC), the African Development Bank (AfDB), the Nordic Development Fund (NDF), the Sustainable Energy Fund for Africa (SEFA), and Calvert Impact Capital. These funds will enable the AGGF to expand its financing for eco-friendly projects, such as purchasing high-efficiency appliances, retrofitting buildings, constructing green buildings, and installing solar panels and battery storage. IFC contributed $17 million in equity and committed $30 million in debt, while AfDB, NDF, and SEFA each invested $10 million in equity. The IDA20 Private Sector Window Blended Finance Facility provided financing to the IFC. In conclusion, the AGGF has secured significant funding from various reputable institutions to facilitate climate-friendly projects in Africa.
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.
AGGF is accompanied by a technical assistance facility of $3.3 million provided by KFW on behalf of BMZ, which supports project development and market studies, and provides transaction advisory and capacity building to stakeholders.
