African Development Bank’s Sustainable Energy Fund for Africa Invests $10 Million to Supercharge Climate Tech Innovation in Sub-Saharan Africa
African Development Bank (African Development Bank website) announced a $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Enduring Africa Climate Venture Fund (ACV Fund) to drive climate technology entrepreneurship across sub-Saharan Africa. This catalytic investment aims to provide $70 million in funding to climate-focused businesses in Africa.
The ACV Fund will meet the critical financing needs of early-stage climate technology entrepreneurs, focusing on high-potential businesses in key sectors, including solar solutions, energy efficiency technologies, electric vehicles, agricultural technology and circular economy innovations. The initiative emphasizes supporting African entrepreneurs, especially businesses owned and managed by women.
SEFA’s strategic investments are expected to attract additional private capital while mitigating the risks associated with early-stage climate technology businesses. This hybrid financing approach directly addresses the chronic shortage of equity financing that often hinders the development of promising climate businesses.
The ACV Fund is expected to have a transformative impact, including adding 200 megawatts of renewable energy capacity, expanding energy access to 420,000 homes and 31,000 businesses, reducing emissions by approximately 17 million tonnes of carbon dioxide equivalent, and creating more than 66,000 jobs, many of them A large portion benefits women.
Wairimu Karanja, Partner and Chief Legal Officer at Persistant, said: “This commitment reflects the African Development Bank’s confidence in our climate investing and deep venture capital model in sub-Saharan Africa. The ACV Fund funds a team led by outstanding entrepreneurs and gender equality Leading early-stage companies investing in financial and human capital that can drive meaningful climate impact while achieving commercial scalability.”
João Duarte Cunha, manager of the World Bank Group’s Renewable Energy Funds, which oversees SEFA, said: “Africa is at the forefront of climate crises and climate opportunities. We are keen to drive more risk and Venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development problems As one of the continent’s most experienced early-stage investors with a proven track record in energy access and the clean energy transition, we. Looking forward to our partnership with Perspective.”
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
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About SEFA:
SEFA is a multi-donor special fund that provides catalytic financing to unlock private sector investment in renewable energy and energy efficiency. SEFA provides technical assistance and concessional financing tools to remove market barriers, build a stronger project pipeline and improve the risk-return profile of individual investments. The overall goal of the fund is to help provide 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 consists of three different entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). With offices in 41 African countries and an external office in Japan, the bank contributes to the economic development and social progress of its 54 regional member countries. For more information: African Development Bank website
