By Africa.com | Created at 2024-12-20 15:58:04 | Updated at 2024-12-21 17:20:54
1 day ago
The African Development Bank (www.AfDB.org) has announced a $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund) to propel climate technology entrepreneurship across Sub-Saharan Africa. This catalytic investment aims to unlock $70 million in funding for African climate-focused ventures.
The ACV Fund will address the critical financing needs for early-stage climate technology entrepreneurs, focusing on high-potential ventures in key sectors, including solar energy solutions, energy efficiency technologies, electric mobility, agricultural technology, and circular economy innovations. The initiative emphasizes supporting African entrepreneurs, particularly women-owned and -managed businesses.
SEFA’s strategic investment is expected to attract additional private capital while mitigating the risks associated with early-stage climate technology businesses. This blended finance approach directly addresses the chronic shortage of equity financing that often hinders the growth of promising climate ventures.
The ACV Fund is projected to deliver transformative impacts, including the addition of 200 MW of renewable energy capacity, expanded energy access for 420,000 households and 31,000 businesses, reduction of approximately 17 million tons of CO2e emissions, and the creation of over 66,000 jobs, with a significant portion benefiting women.
Wairimu Karanja, Partner and Chief Legal Officer at Persistent, stated: “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 Bank Group’s Renewable Energy Funds Division, which oversees SEFA, said, “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”.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Media Contact:
Communication and External Relations
media@afdb.org
About SEFA:
SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects, and improve the risk-return profile of individual investments. The Fund’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with Sustainable Development Goal 7 and Mission 300.
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
