DEG provides €30m backing to Cygnum Capital fund
DEG has committed a €30 million loan to the Africa Go Green Fund.
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DEG, the German development finance institution, has committed a €30 million loan to the Africa Go Green Fund (AGG), managed by Cygnum Capital.
AGG targets the scale-up of commercially viable climate solutions that reduce emissions and improve energy efficiency.
Although Africa’s climate investment needs are significant, many businesses operating in areas such as energy efficiency, clean cooking, electric mobility, green buildings, and distributed energy solutions remain underserved by traditional lenders. These sectors often require tailored financing structures that reflect asset lifecycles, cash-flow profiles, and evolving regulatory environments. AGG was established to address this structural gap by providing flexible medium- to long-term debt solutions specifically designed for climate-focused business models.
Gudrun Busch, senior director of DEG said: “Our investment in the Africa Go Green Fund underscores DEG’s commitment to advancing climate-friendly and energy-efficient solutions across Africa. 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. This collaboration reflects our belief that tailored debt financing is essential to unlock the full potential of Africa’s energy transition.”
Laurene Aigrain, managing director of Cygnum Capital, commented: “DEG’s commitment is a strong endorsement of AGG’s strategy and mission and reflects the growing recognition that debt funds focused on energy efficiency and low-carbon technologies are critical to Africa’s energy transition. By helping bridge the gap in appropriate long-term financing, this investment strengthens our ability to deploy tailored structured debt solutions into high-impact sectors where financing constraints remain acute despite clear commercial and climate fundamentals.”
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