Swedfund, Sweden’s development finance institution, has announced a $10 million commitment to Africa People + Planet Fund III (NVIII), a venture capital fund managed by Novastar Ventures. The fund targets early-stage, high-impact businesses across Africa that are tackling climate change while improving livelihoods for underserved populations.
This investment is part of Swedfund’s broader mission to reduce poverty through sustainable, inclusive investments in developing countries. By backing NVIII, Swedfund aims to catalyze innovation in sectors critical to building resilient, low-carbon economies across the continent.
NVIII is seeking to raise over $200 million to invest in approximately 12 early-stage technology companies that are developing scalable solutions in:
- Renewable energy
- Electric mobility
- Smart logistics
- Circular economy
- Regenerative agriculture
The fund’s strategy is to support businesses that deliver clean utilities, sustainable agricultural practices, and low-emission transport solutions, over 30 million tonnes of greenhouse gas emissions over the fund’s lifetime.
One of NVIII’s notable investments is in Sistema.bio, a Nairobi-based company that provides biogas systems to smallholder farmers. These systems convert animal waste into renewable energy and organic fertilizer, offering a clean, affordable alternative to traditional fuels. To date, Sistema.bio has benefited over 100,000 farmers across sub-Saharan Africa, improving agricultural productivity while reducing environmental harm.
Swedfund joins a growing coalition of development finance institutions supporting NVIII, including Norfund (Norway) and British International Investment (BII). This coordinated effort reflects a shared commitment to long-term investment in Africa’s green transition and inclusive economic development.
“Our investment in NVIII aligns with Swedfund’s core values—supporting climate-smart innovation that empowers communities and builds sustainable futures,” said a Swedfund spokesperson. “We believe in the power of entrepreneurship to drive systemic change.”
With offices in Nairobi, Lagos, and London, Novastar Ventures has a strong history of investing in early-stage ventures across East and West Africa. Its previous funds have supported startups in agriculture, education, and off-grid renewable energy, with a focus on businesses that serve low-income communities and promote climate resilience.
Through NVIII, Novastar aims to continue identifying and scaling companies that are not only commercially viable but also deliver measurable environmental and social impact.
