Africa Go Green Fund (AGG) managed by Cygnum Capital has signed a USD 7.5m Senior Debt Facility with Ampersand Rwanda Limited. The facility will be used to support the growth of the e-mobility business, including working capital requirements and capital expenditures for Bikes, Batteries, and Charging Stations in Rwanda and future African Jurisdictions.

Governments across Africa are acknowledging the need for proactive measures. Notable announcements have been made by several African nations underscoring their commitment to encourage growth of the e-mobility sector, with measures ranging from incentivized electricity tariffs for e-bike charging and reduced import tariffs to potential bans on internal combustion engine (ICE) bikes. We believe that with AGG's investment, Ampersand is poised to play a critical role in the development of a sustainable and cost-effective e-mobility ecosystem across the continent.

AGG was advised by Arthur D Little and Ibis Consulting for technical and ESG respectively, ensuring that investments made through the facility are aligned with the highest international standards of environmental and social responsibility and the technology being deployed is fit-for-purpose and best in market.

Josh Whale, Ampersand CEO said: "There is no credible path to keep the planet under 2 degrees of warming without a rapid and just transition for energy and mobility in Africa. There is no credible path for that transition without physical hardware: Software won't save us. For mobility that means affordable capital for batteries, electric vehicles and charging infrastructure. Cygnum Capital's AGG facility, represents the right sort of capital, at the right place and time."

Laurene Aigrain, Executive Director AGG commented: “We are honoured to be a part of this groundbreaking transaction. We believe that e-mobility has the potential to transform African transportation. This facility will help make e-mobility more accessible and affordable for people across the continent, while also supporting the development of a green economy."

About Ampersand

Founded in 2014, With Operations in Rwanda, Kenya and Uganda. Ampersand is Africa's first and one of the most successful complete electric motorcycle and transportation energy solutions. Ampersand offers East Africa taxi drivers a commercial electric motorcycle that is less expensive from the start, gives a better overall user experience, and requires minimal client behaviour modification.  

About Africa Go Green

AGG is designed to support activities that mitigate GHG emissions in Africa. The fund provides debt financing to businesses and projects across the spaces of industrial energy efficiency, green buildings, clean transport, and green appliances. AGG was established by KfW and has received funding commitments from the German Federal Ministry for Economic Cooperation and Development (“BMZ”) through KfW, in addition to funding commitments from the African Development Bank (and in its on capacity as the implementing entity for SEFA and the Clean Technology Fund (“CTF”)), the International Finance Corporation (“IFC”), Nordic Development Fund (“NDF”), and Calvert Impact Capital. This current fund committed capital is at USD 150 million.

About Cygnum Capital (Formerly Lion’s Head Global Partners)

Cygnum Capital Group is an investment bank and asset manager operating across frontier and emerging markets. Founded in 2008, Cygnum Capital is a global provider of tailored and innovative financial solutions to meet its clients’ diverse needs.

Cygnum Capital uses long-term relationships, networks and local market understanding to deliver a best-in-class service. With offices in London, Nairobi, Lagos, Dubai, and Amsterdam, Cygnum Capital’s dynamic team of 70 finance professionals provide deep sectoral expertise, a broad product offering, an asset management platform and the ability to leverage synergies between our corporate finance, asset management and advisory activities.  

Cygnum Capital Asset Management manages five pioneering funds: four debt funds including: (i) the African Local Currency Bond Fund (“ALCBF”), a ground-breaking investment vehicle established to support local currency capital markets, (ii) Off-Grid Energy Access Fund (“OGEF”) which supports companies in off grid energy such as SHS and small- medium mini-grids, (iii) Facility for Energy Inclusion (“FEI”) which support companies that provide a range of renewable energy solutions such as medium - large mini- grids, C&I and IPP with a maximum capacity of 25 MW, (iv) AfricaGoGreen (“AGG”) Fund which supports companies combating climate change by reducing the use of fossil fuels through new technologies and that increase energy efficiency; and a VC private equity fund (v) E3 Low Carbon Economy Fund for Africa (“E3 LCEF”) which invests in climate-smart services, digital connectivity & Applications, low-carbon productivity enablers. Cygnum Capital Asset Management has over USD 750 million of assets under management with investments in more than 34 African countries.