At a Glance
- DEG loan strengthens Africa Go Green Fund’s climate debt financing across clean energy sectors.
- Fund targets clean cooking, electric mobility, green buildings and energy efficiency projects.
- Structured debt supports viable climate businesses underserved by traditional African bank lending.
Cygnum Capital, a London-based investment banking and asset management firm, has secured a €30 million ($35 million) loan commitment from Germany’s development finance institution DEG to expand climate-focused lending across Africa, strengthening its Africa Go Green Fund (AGG).
The facility will support AGG’s strategy of providing flexible, medium- to long-term debt to commercially viable businesses working to cut emissions and improve energy efficiency, areas where Africa’s climate risks are rising but access to appropriate financing remains constrained.
DEG loan boosts Africa Go Green Fund climate strategy
The fund targets sectors including clean cooking, electric mobility, green buildings, distributed renewable energy and energy efficiency. Many projects in these areas require tailored debt structures that align with asset lifecycles and cash-flow profiles, conditions traditional lenders are often unwilling to accommodate.
Despite contributing minimally to global emissions, Africa faces some of the world’s most acute climate impacts. Businesses developing low-carbon solutions frequently struggle to attract bank financing due to regulatory complexity, perceived risk and long payback periods.
AGG was designed to bridge that financing gap by offering structured debt rather than equity, providing entrepreneurs with a less dilutive path to scale.
Funding targets clean energy, electric mobility, and green buildings
Cygnum Capital managing director Laurene Aigrain said DEG’s commitment validates the fund’s model and strengthens its ability to deploy capital into high-impact sectors that remain underfinanced despite solid commercial fundamentals.
Cygnum Capital strengthens role in Africa’s climate finance ecosystem
Founded to address Africa’s clean energy financing shortfall, AGG is gaining traction as development financiers and private investors increasingly recognize the role of specialized debt funds in accelerating the continent’s energy transition.
For London-headquartered Cygnum Capital, which has operations in Nairobi, Lagos, Dubai and Amsterdam, the DEG-backed facility deepens its position as a growing player in Africa’s climate finance ecosystem.
