BII Invests $16M in Africa Go Green Fund to Boost Sustainability

The British International Investment (BII), the UK’s development finance institution, has pledged $16 million to the Africa Go Green Fund (AGGF).

The funding is part of efforts to improve climate resilience and promote sustainability across Africa.

With this new support, the AGGF has now raised over $166 million, marking a key milestone in its work to finance environmentally friendly projects on the continent.  

The AGGF focuses on funding projects that improve energy efficiency and promote sustainability.

These include financing high-efficiency appliances, upgrading buildings to make them more energy-efficient, constructing green buildings, expanding infrastructure for electric vehicles, and deploying battery storage solutions for homes, businesses, and industries.

Since it started in 2021, the fund has helped finance clean energy platforms across Africa, such as Solarise and Burn Manufacturing.

These investments have improved access to clean energy and cooking solutions for millions of people.  

BII’s investment is crucial given the urgent need for climate finance in Africa.

Experts estimate that the continent needs about $2.5 trillion in climate-related investments between 2020 and 2030 to deal with climate change.

The AGGF is working to bridge this gap by funding companies often ignored by traditional lenders.

These include sectors like energy efficiency, green buildings, electric vehicles, and clean cooking technologies.  

Chris Chijiutomi, managing director and head of Africa at BII, highlighted the importance of making more climate projects in Africa eligible for funding.

He noted that BII plans to allocate at least 30% of its total investments to climate finance.

The AGGF’s approach is helping direct funds to less-developed climate sectors, such as clean cooking and waste-to-energy projects, which are vital for Africa’s energy transition but often struggle to get funding.  

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Since its launch, the AGGF has supported various clean energy initiatives across Africa.

Some notable examples include AktivCo, which provides clean energy for telecom infrastructure in countries like Burkina Faso, Cameroon, Chad, Côte d’Ivoire, Nigeria, and Senegal.

It has also invested in M-Kopa, a platform that helps underbanked customers access solar lighting and smartphones through asset financing.

Another success is Ampersand, which is scaling up electric motorbikes and charging stations in Rwanda and Kenya with AGGF’s backing.  

Clemens Calice, CEO of Cygnum Capital Asset Management, which manages the AGGF, said that investments in energy efficiency are gaining traction.

He pointed out that the fund is an example of how investors can work together to support businesses while contributing to a low-carbon economy across Africa.

BII’s investment also reflects the UK’s commitment to driving innovation and using private funds to tackle the climate crisis.  

These investments are urgently needed. Africa is home to nine of the world’s ten poorest countries and is especially vulnerable to the impacts of climate change.

Through initiatives like the AGGF, BII aims to foster sustainable growth while building resilience to climate challenges.  

By focusing on sectors that often lack funding, this initiative seeks to close the climate finance gap while encouraging sustainable development.

As Africa faces significant environmental challenges, investments like these are vital for advancing the green economy and building climate resilience across the continent.