• DEG to lend €30 million to Africa Go Green Fund
• Fund invests in clean energy and climate solutions across Africa
• Financing targets underfunded sectors like clean cooking, e-mobility

German development finance institution DEG, a subsidiary of KfW Group, said on Jan. 9 it would provide a 30 million euro loan to the Africa Go Green Fund, which invests in climate solutions across Africa.

 Managed by Cygnum Capital, the fund focuses on sectors with rising demand but limited access to tailored financing, including energy efficiency, clean cooking, electric mobility, green buildings and distributed energy.

 These segments often require financing structures aligned with asset lifecycles and company cash flows, terms that traditional lenders are not always able to accommodate.

“Our investment in the Africa Go Green Fund underscores DEG’s commitment to advancing climate-friendly and energy-efficient solutions across Africa,” said Gudrun Busch, a senior director at DEG. “By partnering with AGG, we aim to help close the financing gap for innovative businesses that deliver measurable climate impact while driving sustainable economic growth.”

Recent deals

Since launching in December 2020, the Africa Go Green Fund has backed several projects using similar financing structures. In May 2025, it co-financed an $18.2 million syndicated senior loan in Ghana to support construction of a liquefied petroleum gas bottling plant and expand clean-cooking access. The same year, it committed $8 million in Rwanda to finance distribution of 200,000 improved biomass cookstoves.

In November 2024, British International Investment announced a $16 million commitment to the fund. The fund’s project pipeline stood at $157.9 million in June 2024. DEG’s financing adds momentum as the platform expands into underfinanced parts of Africa’s energy transition and climate-resilience market.

Abdoullah Diop