London, 09 January 2026: DEG (Deutsche Investitions- und Entwicklungsgesellschaft), the German development finance institution and a subsidiary of KfW, has committed a EUR 30 million loan to the Africa Go Green Fund (AGG), managed by Cygnum Capital. The financing will support the expansion of climate-friendly and energy-efficient solutions across Africa.
AGG targets the scale-up of commercially viable climate solutions that reduce emissions and improve energy efficiency. DEG’s commitment will enable continued deployment into fast-growing sectors where demand is accelerating, yet access to appropriately structured debt financing remains limited.
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.
Energy efficiency represents one of the most effective pathways for carbon reduction and avoidance, yet it remains severely underfinanced across the continent. AGG was launched to help unlock this untapped potential.
DEG’s investment marks an important step toward scaling energy efficiency as a cornerstone climate solution in Africa. High-impact areas such as electric mobility, green buildings, clean cooking, and industrial efficiency offer substantial emissions-reduction potential, but continue to face financing and technical barriers. AGG directly addresses these challenges by channeling capital and expertise into underfinanced, high-impact segments.
Since becoming operational in 2021, AGG has built a diversified portfolio across multiple African markets, backing companies that deliver measurable climate impact alongside strong commercial performance. To date, AGG’s investments have supported the deployment of efficient appliances and industrial equipment, clean cooking technologies, electric mobility platforms, and green real estate developments, all contributing quantifiably to emissions reductions.
DEG’s financing further strengthens AGG’s position as a specialised climate debt platform in Africa and reflects growing investor confidence in energy efficiency and climate-friendly technologies as scalable, bankable asset classes.
Gudrun Busch, Senior Director, 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, 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.”
DEG's investment in AGGF directly contributes to several United Nations Sustainable Development Goals, including Affordable and Clean Energy (SDG7), Decent Work and Economic Growth (SDG8), Industry, Innovation, and Infrastructure (SDG9), and Climate Action (SDG13).
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DEG media contact: presse@deginvest.de
About DEG
For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 11.6 billion we’re one of the largest private-sector development financiers. As an impact and climate investor we accompany companies that are addressing transformation and aiming to seize their opportunities. Our customers not only receive financing and advisory solutions tailored to their needs: they can build on our market knowledge, our impact and climate expertise and our international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs.
Learn more: www.deginvest.de
About Cygnum Capital
Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Formerly known as Lion’s Head, which was founded in 2008, Cygnum Capital is now a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs.
Cygnum Capital uses long-term relationships, networks and local market understanding to deliver a best-in-class service. With offices in London, Nairobi, Lagos, Dubai, Frankfurt and Amsterdam, Cygnum Capital’s dynamic team of 80 finance professionals provide deep sectoral expertise, a broad product offering, an asset management platform and the ability to leverage synergies between our corporate finance, asset management and advisory activities.
Cygnum Capital manages seven pioneering funds: six debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off grid energy such as SHS and small- medium mini-grids, (iii) Facility for Energy Inclusion (“FEI”) which support companies that provide a range of renewable energy solutions such as medium - large mini- grids, C&I and IPP with a maximum capacity of 25 MW, (iv) AfricaGoGreen (“AGG”) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies that increase energy efficiency, (v) the Universal Green Energy Access Programme (“UGEAP”), a co-investment and on-lending vehicle targeting distributed renewable energy investments in Africa, (vi) the Africa Agriculture Trade and Investment Fund (“AATIF”) ; and (v) a VC private equity fund E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & Applications, low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 1.3 billion of assets under management with investments in 34 African countries.
Learn more: www.cygnumcapital.com
