African Development Bank invests $10m into Persistent's climate fund
The AfDB has announced an investment into the Persistent Africa Climate Venture Builder Fund.
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The African Development Bank 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 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 emphasises 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.
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 AfDB’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 catalyse more risk and venture capital to support promising African technology startups 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."
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