In an effort to encourage climate technology entrepreneurship throughout Sub-Saharan Africa, 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). The goal of this catalyst investment is to release $70 million in capital for climate-related projects throughout Africa.
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.
