African Dev Bank commits $10m to boost climate tech

To boost climate technology entrepreneurship in Sub-Saharan Africa, the African Development Bank (AfDB) has committed $10 million from its Sustainable Energy Fund for Africa (SEFA) to the Persistent Africa Climate Venture Builder Fund (ACV Fund).

This investment, according to the continental bank, aims to unlock $70 million in capital for climate-focused projects across the continent.

The ACV Fund will address the significant funding gap faced by early-stage climate technology startups, targeting high-impact ventures in sectors such as solar energy, energy efficiency, electric mobility, agri-tech, and circular economy innovations.

Special emphasis will be placed on supporting African entrepreneurs, including women-led and women-managed businesses.

SEFA’s catalytic investment seeks to attract private capital while de-risking early-stage climate ventures. By using a blended finance model, the initiative aims to overcome the chronic shortage of equity funding that often stifles the growth of promising startups in the climate space.

The ACV Fund is expected to deliver significant outcomes, including the addition of 200 MW of renewable energy capacity, energy access for 420,000 households and 31,000 businesses, the reduction of 17 million tons of CO2e emissions, and the creation of over 66,000 jobs—many of which will benefit women.

Wairimu Karanja, Partner and Chief Legal Officer at Persistent, commented: “This investment reflects the African Development Bank’s trust in our approach to climate investing and venture building in Sub-Saharan Africa. The ACV Fund channels financial and human capital into early-stage companies led by exceptional entrepreneurs and gender-inclusive teams, driving impactful climate solutions with the potential for commercial scalability.”

João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, added: “Africa is at the epicenter of both the climate crisis and its opportunities. Our aim is to catalyze more risk and venture capital to support African technology startups tackling complex climate and development challenges. We are excited to partner with Persistent, a seasoned investor with a proven track record in advancing energy access and clean energy transitions on the continent.”