The African Development Bank (AfDB) has announced a $10 million investment from its Sustainable Energy Fund for Africa (SEFA) in the Persistent Africa Climate Venture Builder Fund (ACV Fund) to boost climate technology entrepreneurship in Sub-Saharan Africa.

The bank stated that this catalytic investment will unlock $70 million in finance for African climate-focused ventures.

According to AfDB, the ACV Fund will meet the critical financing needs of early-stage climate technology entrepreneurs, with a focus on high-potential ventures in key sectors such as solar energy solutions, energy efficiency technologies, electric mobility, agricultural technology, and circular economy innovations.

The AfDB said the initiative focusses on boosting African entrepreneurs, particularly women-owned and operated firms.

It stated that SEFA's strategic investment is likely to attract additional private investments while lowering the risks associated with early-stage climate technology companies.

According to AFDB, this mixed finance method immediately addresses the chronic lack of equity financing, which frequently stifles the growth of potential climate initiatives.

The ACV Fund is expected to have transformative effects, including the addition of 200 MW of renewable energy capacity, expanded energy access for 420,000 households and 31,000 businesses, a reduction in approximately 17 million tonnes 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 catalyse 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".