Germany’s development finance institution, DEG, a subsidiary of the KfW Group, has committed a €30 million loan to the Africa Go Green Fund to strengthen financing for climate solutions across the continent.
The fund focuses on fast-growing but underfinanced segments of Africa’s green economy, including energy efficiency, clean cooking, electric mobility, green buildings and distributed energy solutions. It is managed by Cygnum Capital and targets sectors where demand continues to rise, yet access to suitable long-term financing remains limited, particularly for local enterprises.
Many of these climate-focused businesses require financing structures that align with asset lifecycles and corporate cash-flow realities, conditions that often fall outside the risk appetite of traditional lenders. By providing tailored financial instruments, the Africa Go Green Fund aims to bridge this gap and unlock capital for companies delivering measurable environmental impact while scaling sustainable operations.
DEG said the investment reflects its commitment to accelerating climate-friendly and energy-efficient solutions in Africa, while supporting inclusive economic growth and helping innovative businesses overcome persistent financing constraints.
Since its launch in December 2020, the Africa Go Green Fund has deployed similar financing across several African markets. In May 2025, it co-financed an $18.2 million syndicated senior loan in Ghana to support the construction of a liquefied petroleum gas bottling plant, improving access to cleaner cooking alternatives. In the same year, the fund committed $8 million in Rwanda to finance the distribution of 200,000 improved biomass cooking devices, targeting lower household emissions and better energy efficiency.
The fund has also attracted backing from other development finance players. In November 2024, British International Investment announced a $16 million commitment, as the fund’s project pipeline grew to nearly $158 million by mid-2024.
DEG’s latest financing builds on this momentum and strengthens a platform focused on underserved segments of Africa’s energy transition and climate resilience efforts, with growing implications for small and medium-sized businesses operating across the green economy.
