$10 million to power climate technology in Africa

The African Development Bank (AfDB), through its Sustainable Energy Fund for Africa (SEFA), has announced an investment of $10 million in the Persistent Africa Climate Venture Builder Fund (ACV Fund). This initiative aims to support emerging climate technology companies in sub-Saharan Africa.

The investment will serve as leverage to mobilize an additional $70 million in financing for projects focused on key sectors such as solar power, energy efficiency, electric mobility, agricultural technology and the circular economy. With a particular focus on women-led businesses, this approach seeks to reduce the financial barriers that often hold back early-stage climate businesses.

The ACV Fund anticipates transformative impacts, including:

• An additional capacity of 200 MW in renewable energy.
• Expanded access to energy for 420,000 households and 31,000 businesses.
• An estimated reduction of 17 million tonnes of CO₂ emissions.
• The creation of 66,000 jobs, a significant portion of which for women.

João Duarte Cunha, Head of Renewable Energy Funds at the AfDB, stressed that Africa faces both the climate crisis and major opportunities in this area. This strategic investment reflects a desire to encourage African start-ups that develop innovative business solutions to climate challenges.

This initiative illustrates the AfDB’s growing commitment to climate solutions and local entrepreneurs, while attracting private capital to transform the continent’s energy landscape.