One year after its launch, the AfricaGoGreen Fund (AGGF) has made new investments. It is 31.5 million dollars contributed by three investors. The African Development Bank (AfDB) and the Sustainable Energy Fund for Africa (SEFA) signed a combined participation of $20 million. The Nordic Development Fund (NDF) has approved a participation of $11.5 million in December 2021.
These financings allow AGGF to expand its operations on the continent. In Africa, the fund launched in early 2021 with $45 million in capital provides flexible and tailored debt instruments to private companies in the area of green appliances for domestic and industrial processes, green buildings, electric mobility solutions, and battery electricity storage projects. AGGF is managed by LHGP Asset Management, part of Lion’s Head Global Partners.
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“Achieving climate goals and universal access to clean, affordable energy will require large investments in energy efficiency and, more broadly, electrification and other sector coupling trends. By targeting these emerging sectors in Africa, AGGF complements our climate and energy access portfolio, and aligns with our strategic role as a catalytic early-stage investor,” said Henrik Franklin, NDF’s director of portfolio origination and management.
AGGF began its operations in Africa in 2021 with the participation (nearly $9 million) in a financial mobilization of nearly €66 million to Aktivco. This investment vehicle was set up by the Camusat Group, an asset manager for energy infrastructure under the ESCO (Energy Service Company) model. This credit allows for the production of renewable energy and the installation of energy efficiency solutions for telecommunication towers in Chad, Cameroon, Niger, Burkina Faso, and Ivory Coast.
AGGF is also supporting rural electrification through renewable energy through a $5.5 million loan to the British company Bboxx, which operates in several sub-Saharan African countries.
Jean Marie Takouleu