German Finance Group Commits €30m To Boost Africa’s Clean Energy Drive

German development finance institution, DEG, and a subsidiary of KfW Group, have set a side a €30 million loan to Africa Go Green Fund, which specialises in financing climate solutions across Africa.

The fund which invests in energy efficiency, clean cooking, electric mobility, green buildings and distributed energy solutions, is managed by Cygnum Capital manages and targets sectors where demand continues to grow but access to appropriate financing remains limited.

These sectors require financial instruments aligned with asset life cycles and corporate cash-flow profiles, which often do not meet the criteria of traditional lenders.

“Our investment in Africa Go Green Fund underscores DEG’s commitment to promoting climate-friendly and energy-efficient solutions across Africa. By partnering with AGG, we aim to help close the financing gap for innovative companies that deliver measurable climate impact while supporting sustainable economic growth,” said Gudrun Busch, senior director at DEG.

Since its launch in December 2020, Africa Go Green Fund has already deployed this type of financing across multiple projects.

In May 2025, the fund co-financed a $18.2 million syndicated senior loan in Ghana to support the construction of a liquefied petroleum gas bottling plant and expand access to clean cooking.

During the same year, the fund committed $8 million in Rwanda to finance the distribution of 200,000 improved biomass cooking devices.

Earlier, in November 2024, British International Investment announced a $16 million commitment to the fund, whose project pipeline reached $157.9 million in June 2024.

DEG’s financing builds on this momentum and reinforces a platform focused on underfunded segments of Africa’s energy transition and climate resilience agenda.