African Development Bank’s $10 Million Investment to Boost Climate Tech Innovation in Sub-Saharan Africa
The African Development Bank (AfDB) has announced a landmark $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund). This investment aims to accelerate climate technology entrepreneurship across Sub-Saharan Africa, unlocking up to $70 million in funding for climate-focused ventures.
The ACV Fund will focus on early-stage ventures in critical sectors such as solar energy, energy efficiency, electric mobility, agricultural technology, and the circular economy. Special emphasis will be placed on supporting women-owned and managed businesses. By addressing the financing gap that often stifles the growth of early-stage businesses, the initiative is expected to catalyze additional private capital.
This partnership is poised to have transformative impacts, including the addition of 200 MW of renewable energy capacity, expanded energy access for 420,000 households, and 31,000 businesses. Furthermore, the initiative will reduce approximately 17 million tons of CO2e emissions and create over 66,000 jobs, with a significant portion benefiting women.
Wairimu Karanja, Partner and Chief Legal Officer at Persistent, remarked, “This commitment reflects the African Development Bank’s confidence in our climate investing and Venture Building model in Sub-Saharan Africa. The ACV Fund will invest financial and human capital in early-stage companies that can drive climate impact and commercial scalability.”
João Duarte Cunha, Manager of the Bank’s Renewable Energy Funds Division, noted, “Africa is at the forefront of both the climate crisis and opportunity. We aim to catalyze venture capital to support African start-ups that are developing solutions to complex climate issues. This partnership with Persistent is a crucial step forward in achieving clean energy transition and energy access.”
The initiative aligns with SEFA’s mission to support sustainable energy solutions, contributing to the achievement of Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.
