The German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety through KfW Development Bank, injected a EUR 32 million to the Green Guarantee Company (GGC), managed by the Development Guarantee Group (DGG).
About EUR 25 million of the total amount is going towards equity investment and the remaining EUR 7 million, for Technical Assistance (TA).
Carsten Schneider, Federal Minister for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), Germany and Lasitha Perera, CEO of the Development Guarantee Group officiated the investment at the Hamburg Sustainability Conference.
The equity investment is expected to go towards supporting climate projects across Emerging Markets and Developing Economies (EMDEs).
KfW is the fifth GGC shareholder after the Green Climate Fund, the UK Foreign Commonwealth and Development Office (FCDO), through the MOBILIST programme, the Nigerian Sovereign Investment Authority (NSIA) and Norfund.
GGC recently closed its first two transactions that will mobilise USD 70 million for rural electrification in Africa, aligned with the Mission 300 initiative, led by the World Bank Group and the African Development Bank, aiming to connect 300 million people in Africa to energy access by 2030.
Lasitha Perera, Chief Executive Officer (CEO ) of the GGC said “we welcome Germany and KfW’s EUR 32 million commitment, reflecting a strong and trusted partnership. While GGC’s mandate is global, this investment recognises Africa’s particular importance and opportunity. Together, we aim to mobilise private capital into climate-positive projects at scale and strengthen the confidence of global capital markets in emerging and developing economies.”
Picture: Carsten Schneider, Federal Minister for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), Germany and Lasitha Perera, CEO of the Development Guarantee Group at the Hamburg Sustainability Conference