The African Development Bank (AfDB) has announced a $10 million investment through its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund). The funding aims to accelerate climate technology entrepreneurship across Sub-Saharan Africa by addressing critical financing gaps for early-stage startups focused on innovative environmental solutions.
The catalytic funding is expected to unlock an additional $70 million in financing, targeting high-potential ventures in key sectors such as solar energy, energy efficiency, electric mobility, agricultural technology, and circular economy innovations. Notably, the initiative prioritizes women-led and women-managed businesses, underscoring the vital role of women in advancing sustainable economic growth.
Blended Finance Model to Drive Investment
The investment employs a blended finance approach, combining public and private capital to mitigate the risks associated with early-stage investments. This model is designed to attract private investors to support climate technology ventures that often face challenges securing equity financing.
Transformative Impact Anticipated
The ACV Fund is projected to deliver significant outcomes, including:
- Addition of 200 MW of renewable energy capacity.
- Energy access for 420,000 households and 31,000 businesses.
- Reduction of approximately 17 million tons of CO2e emissions.
- Creation of 66,000 jobs, with a strong focus on gender equity.
Strategic Partnership and Vision
Persistent Partner and Chief Legal Officer Wairimu Karanja emphasized the fund’s potential to drive meaningful impact, stating:
“This commitment reflects the African Development Bank’s confidence in our climate investing and in-depth Venture Building model in Sub-Saharan Africa. The ACV Fund invests in early-stage companies led by outstanding entrepreneurs and gender-aligned teams to deliver climate impact and commercial scalability.”
João Duarte Cunha, Manager of the AfDB’s Renewable Energy Funds Division, highlighted Africa’s dual role in the climate crisis and opportunity, adding:
“We aim to catalyze risk and venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development issues.”
Towards a Greener Future
The investment reinforces the AfDB’s dedication to leveraging private capital to address climate challenges while fostering economic growth. By empowering scalable and impactful climate ventures, the bank aims to accelerate the continent’s transition to clean energy and sustainable development.
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