The African Development Bank (AfDB) has pledged a significant $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund). This investment is aimed at boosting climate technology entrepreneurship across Sub-Saharan Africa.
The investment will serve as a catalyst to unlock a total of $70 million in funding for climate-focused ventures across the continent. This funding will be directed towards supporting early-stage entrepreneurs who are addressing some of Africa’s most pressing climate challenges.
Wairimu Karanja, Partner and Chief Legal Officer at Persistent, shared, “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 will focus on key sectors such as solar energy, energy efficiency technologies, electric mobility, agricultural innovations, and circular economy solutions. In particular, the fund will prioritise businesses owned or managed by women, a critical move to foster inclusive growth and empowerment.
The impact of the ACV Fund is expected to be transformative. It aims to add 200 MW of renewable energy capacity, extend energy access to 420,000 households and 31,000 businesses, reduce approximately 17 million tons of CO2 emissions, and create over 66,000 new jobs. A significant portion of these jobs will be directed towards benefiting women.
João Duarte Cunha, manager of AfDB’s Renewable Energy Funds Division, which oversees SEFA, commented, “Africa is at the forefront of both the climate crisis and the climate opportunity. We are keen to catalyse more risk and venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development issues. We look forward to our partnership with Persistent as one of the more seasoned early-stage investors in the continent, with a strong track record in energy access and clean energy transition.”
This initiative marks an important step in addressing both the climate crisis and the economic opportunities available through sustainable, climate-positive innovations in Sub-Saharan Africa.
