Africa Go Green Fund
for Renewable Energy and Energy Efficiency

AGG (or the Fund) was 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 currently has USD 138 million in total commitments and a Technical Assistance Facility (TAF) of USD 3.4 million. It is anticipated that AGG will grow its capital commitments to USD 200 million. The Fund has a pan-African focus and will prioritise investments in Compact with Africa countries in West Africa.

The Africa Go Green Fund is managed by Cygnum Capital Group Ltd fully owned subsidiarys: the AIFM is the dutch domiciled Cygnum Capital B.V., and the portfolio manager is UK domiciled Cygnum Capital Group. Cygnum Capital Group is a leading investment banking and asset management firm.

Our Approach

The mandate 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”). AGG partners with its PIs by providing medium and long-term senior debt, mezzanine financing, and guarantees. The TAF is aimed at maximizing learning-by-doing opportunities, facilitating deals and encouraging the long-term sustainability of the EE/RE market in Africa.

AGG invests in private sector (up to 26% state-owned entities) PIs which it classifies as either Non-Financial Institutions (NFIs) or Financial Institutions (FIs). Examples of each:

  • NFIs: includes corporate and industrial entities, independent power producers, and SMEs that are developing or implementing EE and/or RE projects; and
  • FIs: includes 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.

Our Objectives

Fostering implementation/adaptation of EE and increasing RE production by extending senior and mezzanine financing 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.

Our Investors

Current supporters and investors in the Africa Go Green Fund include:

Our Focus

Energy Efficiency

AGG defines EE as the use or application of less energy to perform the same task or produce the same result and invests in the following EE sectors:

Green Transport

includes e-mobility with a focus on original equipment manufacturers and infrastructure owners

Green Housing

includes new build and retrofit for EE projects. Projects must have an international certifications of the EE credentials

Green Appliances and Solutions

includes among other innovations clean cooking solutions, solar applications, smart controls, efficient appliances, battery storage solutions, green hydrogen & ammonia

Industrial EE

includes solutions applied by corporate and industrial companies that have high energy intensity to improve EE or reduce GHG emissions

AGG considers investments to be energy efficient and qualifying for investment if (i) the investment results in a reduction of GHG emissions and/or improvement of energy efficiency of at least 25% relative to a defined benchmark.

Renewable Energy

Includes, as the case may be, grid connected or off-grid projects developed by:


Independent power producers or captive power using RE such as 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

Our Strategy

Our Strategy 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

Fund Parameters

Ticket Size
Up to USD 18 million or local currency equivalent
Lending rates:
Competitive lending rates depending on transaction structure and risk profile
Flexible subject to an upper limit of 12 years