Monday, June 17, 2024
HomePower SectorADB releases over $30M to AfricaGoGreen

ADB releases over $30M to AfricaGoGreen

The African Development Bank and the Bank’s Sustainable Energy Fund for Africa, SEFA have approved a combined-equity investment of $20 million in the AfricaGoGreen Fund, a debt fund established to promote private investments in energy-efficient technologies and business models, with the objective of decarbonizing African economies and accelerating the energy transition.

These new investments come on top of $11.5 million equity contribution approved by the Nordic Development Fund, NDF in December 2021. NDF provides financing to climate change mitigation and adaptation activities within the nexus of climate change and development. NDF as a donor to SEFA, reinforces the close partnership towards advancing the transition to cleaner and greener solutions for the continent while encouraging the participation of the private sector.

“This combined Bank investment will lead to increased financing of emerging projects and businesses in the areas of industrial appliances, electric mobility and green buildings, which are key to the decarburization of African economies and to a just energy transition”, says Dr. Kevin Kariuki, VP for Power, Energy, Climate and Green Growth, African Development Bank.

“Achieving the climate goals and universal access to clean and affordable energy will require vast investment in energy efficiency and, more broadly, in electrification and other sector coupling trends. By targeting these emerging sectors in Africa, AGGF complements our climate and energy access portfolio, and is aligned with our strategic role as an early-stage catalytic investor”, Henrik Franklin, Director for Portfolio Origination and Management, Nordic Development Fund said.

In early 2021 according to a statement from the Communications department of the bank, about EUR 45 million in catalytic capital was launched as part of the effort to push the AfricaGoGreen, regarded as a flagship project under the G20 Compact with Africa on for visible result and impact.

“We are really happy to see the Bank, SEFA and NDF as new investors in AGGF. These new investments are also expected to trigger additional investments by commercial investors and financiers either directly or through co-funding of projects”, says Jan Martin Witte, Director Global Equity and Funds for KfW Development Bank.

The Fund had approved its first deal in August 2021, a loan to AktivCo – a company that finances clean energy solutions for powering telecommunication towers located in Burkina Faso, Cameroon, Chad, Côte d’Ivoire, and Niger. It has also in December 2021, made an additional approval of a $5.5 million loan to BBOXX, a technology company exploring energy solutions that would provide electricity and other utilities to the millions without them, for the expansion of access to clean cooking solutions.

AfricaGoGreenFund engages in the provision of flexible and tailored debt instruments to private businesses in green appliances for domestic and industrial processes, green buildings, e-mobility solutions, and battery energy storage projects. It is managed by LHGP Asset Management, part of the Lion’s Head Global Partners group.

Clemens Calice, Co-CEO and founding partner of Lion’s Head Global Partners said: “We are excited to welcome the African Development Bank, SEFA and NDF as investors to the AfricaGoGreen Fund. The Fund will take efforts to transition to a lower-carbon economy a step further by offering financing to innovative African companies that embrace energy efficiency as a challenge and an opportunity.”




Please enter your comment!
Please enter your name here

Most Popular