The African Development Bank (AfDB) has, through its Sustainable Energy Fund for Africa (SEFA), committed $10 million to the Persistent Africa Climate Venture Builder Fund (ACV Fund). This strategic investment, according to publication on the bank’s website, is expected to mobilise an additional $70 million in funding for climate-focused ventures across the region.
The ACV Fund is designed to address the critical financing needs of early-stage climate technology entrepreneurs. It focuses on high-potential ventures in sectors such as solar energy solutions, energy efficiency technologies, electric mobility, agricultural technology, and circular economy innovations. A key aspect of this initiative is its emphasis on supporting African entrepreneurs, particularly women-owned and -managed businesses, thereby promoting inclusivity and diversity within the climate tech space.
Wairimu Karanja, partner and chief legal officer at Persistent, highlighted the significance of this investment, stating, “This commitment reflects the African Development Bank’s confidence in our climate investing and in-depth Venture Building model in sub-Saharan Africa.” She further noted that the ACV Fund invests both financial and human capital in early-stage companies led by outstanding entrepreneurs and gender-aligned teams capable of driving meaningful climate impact while achieving commercial scalability.
Managed by the AfDB, the multi-donor Sustainable Energy Fund for Africa (SEFA) provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust project pipeline, and improve investment risk-return profiles. Recently, SEFA announced Japan as its newest donor at a thematic boardroom session showcasing innovative funding structures for Africa’s energy transition, expanding the fund’s donor base to 11 and strengthening its capacity to support crucial energy projects.
This investment aligns with the AfDB’s broader strategy to enhance infrastructure funding and promote sustainable development across the continent. Earlier this year, the bank announced plans to increase infrastructure investments, with Africa’s economic growth projected to accelerate in the coming years. AfDB President Akinwumi Adesina emphasized the continent’s economic resilience despite challenges such as climate change and global inflation.
The $10 million investment in the ACV Fund is poised to play a pivotal role in advancing climate tech innovation in Sub-Saharan Africa. By addressing the financing gap for early-stage entrepreneurs and focusing on key sectors, the initiative aims to drive significant climate impact and contribute to the region’s sustainable economic growth.
