Africa Go Green Fund
Introduction
Swedfund is providing a USD 20 million loan to the Africa Go Green Fund to support companies that reduce emissions and improve energy efficiency across Africa.
The investment will increase access to debt financing for businesses working in areas such as green buildings, clean cooking, green transport and industrial energy efficiency.
Read more in our press release: Swedfund invests USD 20 million to scale energy efficiency solutions in Africa
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Gender Equality
Achieve gender equality and empower all women and girls.
Climate Action
Take urgent action to combat climate change and its impacts.
Sector
Energy & Climate
Within the Energy & Climate sector, Swedfund only invests in renewable energy sources. The expansion of sustainable energy supplies requires a broad approach and innovative solutions.
Value creation
Impact
The investment aims to supports Africa's green transition through investments in energy efficiency and renewable energy. The fund is also expected to contribute to business growth, job creation, and improved access to products and services for underserved groups.
Additionality
Swedfund’s investment is additional as it helps increase access to financing for small and medium-sized companies in Africa working in energy efficiency, clean cooking and e-mobility. These sectors have strong development potential but continue to face limited access to finance from local banks and private investors.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is Medium Risk (FI-B) based on potential E&S risks and impacts inherent to the sectors in the lending portfolio and contextual risks in the target countries.
ESG Mitigation Measures
Swedfund is supporting the company to further develop its environmental and social management systems (ESMS) to address issues related to sustainability processes.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1 and 2 are applicable at the fund manager level. At the investee level, PS 1-4 are applicable.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.
Other investments within
Energy & Climate