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Swedfund, Sweden’s development finance institution, has announced a $20 million loan to the Africa Go Green Fund to expand financing for companies delivering energy efficiency solutions across the continent. The investment is expected to help scale projects in areas such as green buildings, clean cooking, green transport and industrial energy efficiency.

Gunilla Nilsson, Swedfund’s Investment Director and Head of Energy and Climate, said the commitment will support practical, everyday solutions that cut emissions and reduce costs. “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,” she said.

Africa’s energy demand continues to rise, but many companies offering energy saving technologies struggle to access long term financing suited to their investment cycles, according to Swedfund. This funding gap has slowed the scale up of solutions that could reduce emissions, improve service reliability and lower operating costs for households and businesses.

The Africa Go Green Fund, established by KfW and managed by Cygnum Capital, has already financed nearly 30 projects in 17 African countries. Swedfund’s new investment will strengthen the fund’s ability to reach more companies that deliver significant climate benefits but often face challenges securing debt on appropriate terms. By investing alongside other public and private financiers, Swedfund also aims to mobilise additional capital for energy efficiency initiatives across Africa.

Swedfund, which plays a key role in Sweden’s implementation of the 2030 Agenda and the Paris Agreement, supports sustainable development through private sector investments and technical feasibility studies. Its interventions focus on expanding access to essential services, creating decent jobs and catalysing private capital for climate aligned infrastructure and industries.