AfricaGoGreen Fund (AGG) is initiated by KFW on behalf of the German government to promote private investments that mitigate or reduce the emission of Green House Gases (GHG). AGG has been launched with €32 million and a Technical Assistance Facility of €3 million and anticipates growing to €150 million in the next 18 months, and will focus in particular on Compact with Africa countries in West Africa.
The “Objective” of the Fund is to spur additional GHG reductions by encouraging corporate and industrial entities, local financial institutions and other businesses (“Partner Institutions” or “PIs” ) which are developing and/or investing in eligible Energy Efficiency (“EE”) & Renewable Energy (“RE”) projects by providing medium and long-term debt, mezzanine financing, and guarantees as well as technical assistance aimed at maximizing learning-by-doing opportunities, facilitating deals and encouraging the long-term sustainability of the EE/RE market in the Target Region.
The Fund plans to accomplish these objectives by providing financing to the following private owned (up to 26% state owned is possible) Partner Institutions (“PIs”):
Non-Financial Institutions (“NFIs”) including corporate and industrial entities, independent power producers, and SMEs that are developing or implementing EE and/or RE projects within the Target Region; and
Financial Institutions (“FIs”) including local commercial banks, leasing companies and other selected financial institutions that either finance or are committed to finance private sector investments in EE and RE projects.
The Fund pursues two objectives:
Fostering implementation/adaptation of EE and increasing RE production by extending senior and mezzanine loans dedicated to finance energy solutions predominantly via direct investments to NFIs; and
Catalysing local financial sector to finance private sector investments in EE and RE by demonstrating the commercial viability of green finance predominantly via credit lines as well as guarantees and guarantee-type products.
Green appliances (including, but not limited to energy efficient lights, solar pumps, improvements in insulation leading to better energy efficiency, equipment reducing the use of combustion engines etc).
Other commercial and industrial applications that have a GHG mitigating impact (like solar power for Telecom towers, more energy efficient machinery)
Independent power producers or captive power using RE like hydro, solar, wind, geothermal, tidal or biomass as the main fuel source,
Distribution companies selling power to the national grid, mini grids, commercial & industrial as well as SME and retail customers as long as more than 70% of the electricity sold is from RE sources
Innovative ideas require flexible and supportive financing. AGG is determined to push boundaries by providing capital that is tailored to the needs of businesses willing to address climate change head-on. To achieve its objectives, AGG will:
Provide senior and mezzanine debt as well as guarantees with significant flexibility to tailor terms to the needs of its partners
demonstrate the commercial viability of green finance, including by leveraging private investors into the fund
invest either directly or through local financial institutions that are building a green loan portfolio,
provide technical assistance to
(i) build the capacity of investees and
(ii) promote the sustainable development of low carbon economic growth
The AfricaGoGreen Fund enjoys a wealth of experience and insight from a global footprint provided by the portfolio manager, Lion's Head Global Partners. Our strategic footprint gives us a deeper understanding of the economic, political, social and geographic factors driving local and international markets. Our global relationships and networks, on-the-ground presence and deep sector expertise gives us unique insights into local market activity and investor sentiments.
3 Rue Gabriel Lippmann,
LHGP Middle East
Dubai International Financial Centre
Unit 2, Level 1, Gate Village Building 2,
PO Box 113355,
Dubai, United Arab Emirates
LHGP West Africa,
6th Floor, Sapetro Towers,
1 Adeola Odeku Street,
LHGP East Africa
3rd Floor, Tower A,
Valley View Office Park,
City Park Drive,
Lion's Head Global Partners
130-132 Buckingham Palace Road
375 Greenwich Street,
United States of America
Innpact Fund Management S.A. is an independent AIFM established by Innpact, a leader in impact finance with a 13-year track record in structuring impact funds totalling of $6bn of capital, impact advisory and third-party fund management support. Innpact can delegate portfolio management or provide a full suite of AIFM management support services – Risk Management, Compliance, Portfolio Management, Board and Regulatory reporting, enabling investment teams to focus on investments and investors.Contact details for AGG Fund and supporters
Africa Go GreenFund
130 Buckingham Palace Road
LHGP Asset Management 130-132 Buckingham Palace Road London SW1W 9SA United Kingdom