ABIDJAN, Ivory Coast, December 18, 2024/ -- The African Development Bank (www.AfDB.org) has announced a $10 million investment from its Sustainable Energy Fund for Africa (SEFA) into the Persistent Africa Climate Venture Builder Fund (ACV Fund) to propel climate technology entrepreneurship across Sub-Saharan Africa. This catalytic investment aims to unlock $70 million in funding for African climate-focused ventures.

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.

The ACV Fund is projected to deliver transformative impacts, including the addition of 200 MW of renewable energy capacity, expanded energy access for 420,000 households and 31,000 businesses, reduction of approximately 17 million tons of CO2e emissions, and the creation of over 66,000 jobs, with a significant portion benefiting women.

Wairimu Karanja, Partner and Chief Legal Officer at Persistent, stated: "This commitment reflects the African Development Bank's confidence in our climate investing and in-depth Venture Building model in Sub-Saharan Africa. The ACV Fund invests financial and human capital in early-stage companies led by outstanding entrepreneurs and gender-aligned teams that can drive meaningful climate impact while achieving commercial scalability".

João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, which oversees SEFA, said, "Africa is at the forefront of both the climate crisis and the climate opportunity. We are keen to catalyze more risk and venture capital to support promising African technology start-ups developing commercial solutions to complex climate and development issues. We look forward to our partnership with Persistent as one of the more seasoned early-stage investors in the continent, with a strong track record in energy access and clean energy transition".