AfDB Invests $10 Million to Boost Climate Technology Startups in Sub-Saharan Africa

Investment in Persistent Africa Climate Venture Builder Fund to Drive Innovation and Job Creation in Key Sectors.

The African Development Bank (AfDB) has announced a $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund), aimed at accelerating climate technology entrepreneurship across Sub-Saharan Africa. This catalytic funding is expected to unlock an additional $70 million in financing for early-stage African climate ventures, addressing critical financing gaps for innovative startups focused on environmental solutions.

The ACV Fund will target high-potential ventures in sectors vital to Africa's climate resilience and development, including:

Solar Energy Solutions

Energy Efficiency Technologies

Electric Mobility

Agricultural Technology

Circular Economy Innovations

The initiative places a strong emphasis on supporting women-owned and -managed businesses, recognizing the role of women as key drivers of sustainable economic growth and innovation in the region.

A Blended Finance Approach to Mitigate Risk

SEFA's investment will leverage a blended finance model, which combines public funding with private capital to reduce the financial risks associated with early-stage investments. This approach is designed to encourage private investors to support promising climate technology ventures that typically face difficulties securing equity financing.

Impact Projections and Benefits

The ACV Fund is expected to generate transformative outcomes, including:

• 200 MW of additional renewable energy capacity.
• Expanded 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 significant proportion benefiting women and contributing to gender equity in the green economy.

Strategic Partnership and Vision

Wairimu Karanja, Partner and Chief Legal Officer at Persistent, expressed enthusiasm about the partnership, 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 financial and human capital in early-stage companies led by outstanding entrepreneurs and gender-aligned teams that can drive meaningful climate impact while achieving commercial scalability."

João Duarte Cunha, Manager of the AfDB’s Renewable Energy Funds Division, added:

"Africa is at the forefront of both the climate crisis and the climate opportunity. We are keen to catalyze more risk and venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development issues."

A Path to Sustainable Development

This investment underscores the African Development Bank’s commitment to leveraging private capital to tackle Africa's climate challenges while advancing economic growth and job creation. By supporting early-stage ventures with scalable and impactful solutions, the AfDB is helping to pave the way for a clean energy transition and a greener, more sustainable future for the continent.