Africa Go Green Fund (AGG), a climate debt vehicle managed by Cygnum Capital, has doubled its financial commitment to African electric mobility operator Spiro to $36m, injecting an additional $18m to fund the expansion of two-wheeler fleets and charging networks across East Africa.
The follow-on debt investment builds on a debt facility closed in December 2025, under which AGG committed $18m alongside $7m from climate fintech lender Nithio, with AGG serving as investment structuring lead.
The fresh capital comes as development finance institutions (DFIs) step up debt availability for commercial clean energy projects across sub-Saharan Africa, where high interest rates and local currency fluctuations have constrained access to traditional commercial bank capital.
East African expansion
Spiro plans to deploy the funding primarily to scale its presence in Uganda and Rwanda, two of its seven active operating markets. The proceeds will finance the deployment of additional electric motorcycles and the expansion of its battery-swapping network, including new large-format swapping hubs designed to improve station density along high-traffic commercial transit corridors.
Spiro operates a “battery-as-a-service” model that unbundles vehicle ownership from battery costs — the most expensive component of an electric vehicle. Riders purchase or lease the motorcycle frame while renting batteries, exchanging depleted packs for charged units at automated stations in minutes. The structure aims to overcome the capital expenditure hurdle for commercial motorcycle taxi drivers (boda-bodas), who face tight daily operating margins.
As of September 2026, Spiro reported deploying more than 135,000 electric motorcycles, operating 2,500 battery swap stations, and completing over 50m battery swaps across seven countries. The company operates local assembly facilities in Uganda, Kenya, Nigeria, and Rwanda.
“This additional financing will enable us to accelerate execution in two important East African markets,” said Anant Badjatya, group chief executive of Spiro. “In Uganda and Rwanda, we will deploy more electric motorcycles, expand our battery-swapping infrastructure, and strengthen the network that supports our riders every day.”
Development capital bridge
The deal underscores the role of specialised debt funds in filling sub-Saharan Africa’s green infrastructure financing gap. While demand for urban mobility and energy-efficient solutions across the continent is growing rapidly, early-stage transport and renewable energy ventures frequently struggle to secure long-term debt matched to their cash flow cycles.
AGG holds $232m in committed capital dedicated to industrial energy efficiency, clean transport, green housing, and sustainable appliances across Africa.
The fund’s capital base was augmented in August 2026 by a $20m loan from Swedfund, Sweden’s DFI. Swedfund’s facility was structured specifically to deepen AGG’s capacity to extend credit to emission-reducing businesses that fall outside the risk appetite of conventional commercial lenders.
The capital allocation aligns with Swedfund’s broader strategic focus on the region. According to the institution’s latest disclosures, 13 out of 15 new investments made in 2024 — representing $229m of $249m total new commitments — were directed to African markets. Across all global operations, Swedfund invested SEK 2.7bn ($270m) last year while generating an operating profit of SEK 376m ($37.6m).
“Energy efficiency is one of the most practical ways to reduce emissions while lowering costs,” said Gunilla Nilsson, Investment Director and Head of Energy and Climate at Swedfund. “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.”
Institutional validation
For AGG, doubling down on Spiro reflects growing institutional confidence in asset-heavy, infrastructure-led business models in African tech and transit sectors.
“Our decision to increase AGG’s investment in Spiro reflects the strong progress the company has made since our initial investment and our continued confidence in its growth potential,” said Laurène Aigrain, managing director of Africa Go Green Fund. “Spiro is tackling two critical challenges at once: cutting transport emissions and giving riders a smarter, more cost-effective way to move.”
Gagan Gupta, founder of Spiro, added that the follow-on investment demonstrates that “a model built around the realities of African markets can scale rapidly, deliver meaningful impact, and attract long-term institutional capital.”