The African Development Bank (AfDB) has unveiled a $10 million investment through its Sustainable Energy Fund for Africa (SEFA) to accelerate climate technology entrepreneurship across Sub-Saharan Africa. The funds, directed toward the Persistent Africa Climate Venture Builder Fund (ACV Fund), aim to mobilize an additional $70 million for climate-focused initiatives in the region.
The ACV Fund is set to address the critical financing challenges faced by early-stage climate tech ventures, targeting high-potential sectors such as solar energy, energy efficiency, electric mobility, agricultural technology, and circular economy innovations. A key focus is on empowering African entrepreneurs, with a particular emphasis on supporting women-owned and -managed businesses.
SEFA’s investment represents a blended finance approach designed to attract private capital while mitigating the risks associated with early-stage climate ventures. This strategy seeks to overcome the persistent shortage of equity financing that has historically stifled the growth of promising African climate businesses.
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The initiative is expected to deliver transformative impacts, including the addition of 200 MW of renewable energy capacity, improved energy access for 420,000 households and 31,000 businesses, and the creation of over 66,000 jobs—many of which will benefit women. The program also aims to cut approximately 17 million tons of CO2 equivalent emissions.
Wairimu Karanja, Partner and Chief Legal Officer at Persistent, emphasized the importance of the initiative.
“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 AfDB’s Renewable Energy Funds Division, highlighted the potential for the initiative to unlock Africa’s climate opportunities.
“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. 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”.
