PRESS: AfricaGoGreen Fund launched by KfW to boost a green recovery in West Africa

The AfricaGoGreen Fund and its technical assistance facility have been launched by KfW on behalf of BMZ. It will provide medium- and long-term financing and capacity building to financial and non-financial institutions with the aim of demonstrating the commercial viability of green finance while increasing energy efficiency and renewable energy production in West Africa. The fund was launched with an initial investment of EUR 32 million in Junior Shares and an additional contribution of EUR 3 million for the Technical Assistance Facility.

AfricaGoGreen was incorporated in Luxembourg as a reserved alternative investment fund (SICAV-RAIF) with the aim to spur greenhouse gas reductions by backing financial and non-financial institutions developing and/or investing in eligible energy efficiency (EE) and renewable energy (RE) projects in W Africa, acting as a catalyst for a green recovery from the current pandemic crisis. While in an initial phase Innpact Fund Management S.A. will act as interim Alternative Fund Manager (AIFM), the Fund will be managed by Lion’s Head Group (LHGP).

‘’The current context of COVID-19 pandemic is reinforcing the scope of AfricaGoGreen to boost reliable, sustainable and affordable green energy production in Africa, following the ambition of reaching a just and green recovery in line with the Paris Agreement’’ says Mr. Jan Martin Witte, Chair of the Board of Directors of AfricaGoGreen.

"AfricaGoGreen will in fact play an active role in the energy transition of the African continent by providing medium and long-term financing, guarantees and specific technical assistance. The Fund’s investments will initially target West Africa and is expected to expand further in Africa, including to the other G20 Compact with Africa Countries on a demand and opportunity-based approach. AfricaGoGreen will focus on working with financial institutions committed to finance private sector investments in EE and RE projects and with non-financial institutions that are developing EE and/or RE projects within the target Countries".

Clemens Calice, Co-CEO at Lion's Head Global Partners LLP said “We are excited to partner with KfW that, like no other development finance institution, has pushed the African financial markets above and beyond business as usual – this has been a key driver for market innovation and ultimately tangible positive impact.  We really look forward to this next challenge with AfricaGoGreen, in particular against the backdrop of new business models and technologies creating new opportunities to combat climate change in Africa."

Written by
Clemens Calice
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