Africa Go Green Fund (AGG), a climate debt vehicle managed by Cygnum Capital, has increased its financial commitment to African electric mobility company Spiro to $36m.

The additional $18m in debt financing will support Spiro’s expansion in East Africa, with funding directed towards larger electric two-wheeler fleets and expanded battery-charging and swapping infrastructure.

The latest investment follows a debt facility completed in December 2025. Under that arrangement, AGG committed $18m alongside $7m provided by climate fintech lender Nithio, with AGG acting as the investment structuring lead.

The new financing comes as development finance institutions (DFIs) increase the availability of debt for commercial clean energy projects across sub-Saharan Africa. High interest rates and fluctuations in local currencies have continued to limit access to conventional commercial bank financing.

Spiro intends to channel much of the new capital into Uganda and Rwanda, where it already operates as part of its seven-country market footprint.

The financing will support the rollout of more electric motorcycles and the expansion of Spiro’s battery-swapping network. This includes the development of larger-format swapping hubs intended to increase station density along busy commercial transit corridors.

Spiro uses a “battery-as-a-service” model, separating the cost of the motorcycle from its battery, which is the most expensive component of an electric vehicle. Under the model, riders purchase or lease the motorcycle frame and rent batteries, which they can exchange for charged units at automated stations within minutes.

The approach is designed to reduce the upfront capital burden for commercial motorcycle taxi operators, known as boda-bodas, who typically operate within tight daily margins.

As of September 2026, Spiro said it had deployed more than 135,000 electric motorcycles, operated 2,500 battery swap stations and completed more than 50 million battery swaps across seven countries. The company also has 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.”

The transaction also highlights the role of specialised debt funds in addressing the financing gap for green infrastructure in sub-Saharan Africa.

Although demand for urban mobility and energy-efficient solutions is expanding across the continent, early-stage transport and renewable energy businesses often face difficulties securing long-term debt that matches their cash-flow cycles.

AGG has $232m in committed capital earmarked for industrial energy efficiency, clean transport, green housing and sustainable appliances across Africa.

Its capital base was further strengthened in August 2026 through a $20m loan from Swedfund, Sweden’s development finance institution. The facility was structured to expand AGG’s ability to provide financing to businesses that reduce emissions but remain outside the risk appetite of conventional commercial lenders.

The investment is consistent with Swedfund’s wider focus on Africa. Its latest disclosures show that 13 of its 15 new investments in 2024, accounting for $229m of $249m in total new commitments, were directed to African markets.

Across its global operations, Swedfund invested SEK 2.7bn ($270m) last year and recorded 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.”

For AGG, the decision to increase its investment in Spiro reflects continued institutional backing for asset-heavy and infrastructure-led business models within Africa’s technology and transportation 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.

Source Launchbase Africa