The Africa GoGreen Fund (AGG), managed by Cygnum Capital, has raised €30 million ($33 million) from Germany’s development finance institution DEG to expand financing for climate-focused businesses across Africa, the fund said on Friday.
The funding will be used to scale investments in energy efficiency and climate-friendly solutions, including clean cooking, electric mobility, green buildings and distributed energy systems—sectors where demand is accelerating but access to long-term, structured debt remains limited.
DEG, a subsidiary of state-owned lender KfW, said the commitment is aimed at closing a persistent financing gap faced by climate startups and growth-stage companies whose business models and asset lifecycles are often ill-suited to conventional bank lending.
Although Africa’s climate investment needs are substantial, many companies deploying low-carbon and energy-efficient technologies struggle to secure appropriate financing. AGG was established to address this structural challenge by providing flexible medium- to long-term debt tailored to climate-focused business models.
Since becoming operational in 2021, AGG has built a diversified portfolio across multiple African markets. The fund has backed companies such as M-KOPA, which finances solar systems, electric motorcycles and energy-efficient appliances in East Africa; GOGO Electric, an electric mobility company serving boda-boda riders in Uganda; and AktivCo, which delivers energy-efficient power solutions for telecom towers across West and Central Africa. Other investments include clean energy providers BBOXX and Solarise, as well as Mawingu, an East African internet service provider expanding energy-efficient digital infrastructure.
Energy efficiency is widely regarded as one of the most cost-effective pathways for reducing greenhouse gas emissions, yet it remains significantly underfinanced across the continent.
“Our investment in the Africa GoGreen Fund underscores DEG’s commitment to advancing climate-friendly and energy-efficient solutions across Africa,” said Gudrun Busch, senior director at DEG. “By partnering with AGG, we aim to support innovative businesses that deliver measurable climate impact while driving sustainable economic growth.”
Laurene Aigrain, managing director at Cygnum Capital, said DEG’s commitment reflects growing investor confidence in energy efficiency and low-carbon technologies as scalable and bankable asset classes in Africa.
“Debt funds focused on energy efficiency and low-carbon technologies are critical to Africa’s energy transition,” Aigrain said. “This investment strengthens our ability to deploy tailored financing into high-impact sectors where financing constraints remain acute despite strong commercial and climate fundamentals.”
DEG said the investment contributes to several United Nations Sustainable Development Goals, including affordable and clean energy, decent work and economic growth, industry and innovation, and climate action.
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