Swedfund provides $20m loan to scale African energy efficiency

Swedfund, Sweden’s development finance institution, is providing a US$20 million loan to the Africa Go Green Fund. The investment aims to scale energy efficiency solutions and reduce emissions across the African continent.

The funding will increase access to debt financing for businesses specializing in green buildings, clean cooking, green transport, and industrial energy efficiency. This support addresses a gap where energy efficiency companies often lack financing that matches their long-term investment needs.

The Africa Go Green Fund, established by KfW and managed by Cygnum Capital, has already financed approximately 30 projects across 17 African countries. Swedfund’s contribution is intended to strengthen the fund’s capacity to support companies that deliver significant climate benefits but struggle to access suitable debt terms.