ABIDJAN, Ivory Coast (BG) – The African Development Bank (AfDB) has committed $10 million from its Sustainable Energy Fund for Africa (SEFA) to the Persistent Africa Climate Venture Builder Fund (ACV Fund), marking a significant push for climate technology entrepreneurship across Sub-Saharan Africa.

This investment, announced on Wednesday, aims to unlock $70 million in funding for African climate-focused ventures.

It targets early-stage entrepreneurs addressing critical challenges in solar energy solutions, energy efficiency technologies, electric mobility, agricultural technology, and circular economy innovations.

Special emphasis will be placed on supporting African entrepreneurs, particularly women-owned and managed businesses.

Unlocking Potential Through Venture Building

The ACV Fund employs a Venture Building model, combining financial and human capital to accelerate early-stage companies with the potential for transformative climate impact and commercial scalability.

The fund’s goals include deploying 200 MW of renewable energy capacity, providing energy access to 420,000 households and 31,000 businesses, and reducing 17 million tons of CO2 equivalent emissions.

It is expected to create over 66,000 jobs, with a significant proportion benefiting women.

“This commitment reflects the African Development Bank’s confidence in our climate investing and in-depth Venture Building model in Sub-Saharan Africa,” said Wairimu Karanja, Partner and Chief Legal Officer at Persistent.

Mitigating Risk and Attracting Private Capital

The initiative utilizes a blended finance approach to attract private capital and mitigate the risks associated with early-stage climate tech ventures.

João Duarte Cunha, Manager of the Bank Group’s Renewable Energy Funds Division, highlighted Africa’s dual role in the global climate agenda.

“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,” Duarte Cunha said.

“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, he added.

The ACV Fund reflects AfDB’s broader commitment to fostering innovation and resilience in Africa’s energy and climate sectors, positioning the continent as a hub for sustainable solutions to global challenges.