The African Development Bank (AfDB) has made a groundbreaking $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund).
This initiative seeks to accelerate climate technology entrepreneurship across Sub-Saharan Africa, potentially unlocking up to $70 million in funding for climate-focused ventures.
The ACV Fund will target early-stage businesses in key sectors, including solar energy, energy efficiency, electric mobility, agricultural technology, and the circular economy.
A special focus will be placed on supporting women-led and women-managed businesses, addressing the financing challenges that often hinder the growth of early-stage enterprises.
By bridging this gap, the initiative is expected to mobilize additional private investment into the region.
The partnership is poised to deliver significant outcomes, including:
- Adding 200 MW of renewable energy capacity.
- Expanding energy access for 420,000 households and 31,000 businesses.
- Reducing approximately 17 million tons of CO2 equivalent emissions.
- Creating over 66,000 jobs, with a significant portion benefiting women.
Wairimu Karanja, Partner and Chief Legal Officer at Persistent, emphasized the transformative potential of the fund, stating, “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 channel financial and human capital into early-stage companies that can deliver climate impact and achieve commercial scalability.”
João Duarte Cunha, Manager of the Bank’s Renewable Energy Funds Division, remarked, “Africa is at the forefront of both the climate crisis and opportunity.
We aim to catalyze venture capital to support African start-ups developing solutions to complex climate issues.
This partnership with Persistent is a critical step in advancing the clean energy transition and expanding energy access.”
The initiative aligns with SEFA’s mission to support sustainable energy solutions and contributes directly to achieving Sustainable Development Goal 7, which focuses on ensuring access to affordable, reliable, sustainable, and modern energy for all.
With this bold investment, AfDB continues to champion innovative solutions that drive climate resilience, economic growth, and sustainable development across Sub-Saharan Africa.
