Green Guarantee

What is “Green Finance”?

Green Finance comprises finance flows for “Climate Finance” and finance for “Other environmental objectives”.

AGF focuses on fostering Climate Finance in Africa through:

Mitigation of Greenhouse Gases

  • Activities that aims at reducing emissions of greenhouse gas (GHG) or enhancing GHG sequestration;
  • Includes (but not limited) to the production of Renewable Energy, Energy Efficiency Projects and Reducing Emissions from Deforestation and Degradation (REDD) projects.

Adaptation to Climate Change

  • Reducing the vulnerability of human or natural systems to the impacts of climate change;
  • Maintaining and/or increasing the resilience of human and ecological systems to negative climate changes impacts

The Challenges

  • Banks inability to assess risk associated to new technologies
  • Lack of historical data: a relatively new industry and business models are unproven
  • Lack of experience and familiarity Climate with new renewable energy technology

Our Solution

Offering partial credit guarantees with attractive terms to Financial Institution’s appetite combined with Capacity Development to enhance knowledge of a nascent industry

  • To mobilize medium to long term funding;
  • Preferential pricing;
  • First-loss guarantee as much as pari-pasu guarantee;
  • Flexible Coverage;
  • Relevant Tenor.

Qualifying Projects

  • Renewable Energy
  • Energy Efficiency
  • Technology
  • Sustainable Transport

  • Cleaner materials, technologies, systems and practices in product value chains
  • Waste and wastewater management
  • Waste and material recovery and re-use
  • Recycling

  • Climate-smart agriculture; crops, seeds, technologies and practices
  • Sustainable forestry and fisheries
  • Organic waste management
  • Water protection, conservation, monitoring and management
  • Protection of coastlines, watersheds and vulnerable ecosystem resources

  • Climate-related services financial services
  • Climate-related ICT applications
  • Sustainable tourism
  • Natural disaster prevention, preparedness and response
  • Climate change training, education and consulting services
  • Other climate-related service sectors.

other products

African Guarantee Fund contributes to the promotion of economic development in Africa through provision of Partial Guarantees & Capacity Development to Financial Institutions to facilitate access to finance for Small and Medium-sized Enterprises.