Swedfund is providing a $20 million loan to the Africa Go Green Fund (AGGF) to support companies that reduce emissions and improve energy efficiency across Africa.
According to Swedfund, Sweden’s state-owned development finance institution, 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.
This comes as energy demand on the continent continues to grow, while many companies in the energy-efficiency space lack financing that matches their long-term investment needs. This limits the scale-up of solutions that can reduce emissions, lower costs and improve the reliability of essential services.
The funding gap persists even as Africa’s broader renewable energy sector reaches record levels.
An analysis by Ember and African Tech Futures Lab estimates the continent is on track to install 17GW of solar in 2026 – a record for the region and a 45% increase year on year.
This would mark the third consecutive record year for African solar installations. The analysis finds that solar growth is spreading across the continent, with 36 of Africa’s 54 countries expected to install record volumes of solar in 2026.
Swedfund’s investment will strengthen AGGF’s capacity to provide financing to companies that can deliver significant climate benefits but often struggle to access debt on suitable terms.
By investing alongside other public and private investors, Swedfund also helps mobilise additional capital for energy-efficiency solutions across the region, it said.
AGGF has already financed close to 30 projects across 17 African countries and is expanding its lending activities to reach more companies providing energy-efficiency solutions.
Gunilla Nilsson, investment director and head of energy and climate at Swedfund, said: “Energy efficiency is one of the most practical ways to reduce emissions while lowering costs. Through this investment, Swedfund will support companies providing solutions that people use in everyday life, from cleaner cooking to more energy-efficient housing and transport.”
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