Africa fund receives $16m commitment from BII
BII has announced a $16 million commitment to the Africa Go Green Fund, managed by Cygnum Capital Asset Management.
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British International Investment (BII) has announced a $16 million commitment to the Africa Go Green Fund (AGGF), managed by Cygnum Capital Asset Management.
Having raised over $166 million at the interim close, the fund will expand access to finance for climate-friendly projects, such as purchasing high-efficiency appliances and industrial equipment, retrofitting existing buildings, constructing new green buildings, investing in the growth of electric mobility vehicles and infrastructure, and installing battery storage for residential, commercial, and industrial consumers.
Since becoming fully operational in 2021, AGGF has provided financing to several pan-African clean energy platforms, including Solarise and Burn Manufacturing, to accelerate access to clean energy and cooking solutions for millions of Africans. Other notable investments include AktivCo, a telecoms energy services company (ESCO) that is expanding clean energy solutions for telecoms infrastructure in Burkina Faso, Cameroon, Chad, Côte d'Ivoire, Nigeria and Senegal; M-Kopa, an asset financing platform that provides underbanked customers in Africa access to products like solar lighting, televisions, fridges and smartphones; and Ampersand, which is scaling electric motorbikes and charging infrastructure across Rwanda and Kenya.
Chris Chijiutomi, managing director and head of Africa at BII, said: "Expanding the universe of bankable climate projects across Africa is a priority for BII to achieve our goal to invest at least 30% of total commitment in climate finance. AGGF’s approach allows our capital to reach more nascent climate sub-sectors such as clean cooking and waste-to-energy, which are equally important to energy transition but face the challenge of getting finance to support their growth."
Clemens Calice, CEO of Cygnum Capital, commented: “We could not be more excited about reaching this milestone. AGG is testimony to the belief that energy transition in Africa requires the collaborative effort of investors that want to support viable and innovative businesses, whilst also contributing to a low carbon economy across all of Africa. By committing to AGG, BII and all existing investors have made a clear statement of intent. Cygnum's team managing AGG has already translated this intent into a number of pioneering climate investments and is confident that energy efficiency as an investment strategy is gaining momentum.”
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