Despite the continent accounting for a disproportionately small share of global climate finance, new capital commitments from international investors and development finance institutions signal new momentum for climate change and energy investment across Africa.
Climate change venture firm Persistent has launched a $70 million investment vehicle aimed at scaling up African start-ups developing climate change solutions, while the European Investment Bank has committed more than €1 billion to renewable energy projects across sub-Saharan Africa under its massive electrification initiative.
Persistent has announced the launch of the Persistent Africa Climate Venture Builder Fund (Persistent ACV Fund), a funding platform designed to support early-stage companies tackling climate change challenges in sectors such as energy, agriculture and natural resource management. The fund has already secured an initial close of $52 million and also includes an additional $5 million in venture construction facilities to support the creation and incubation of new companies.
The investment vehicle will focus on startups from seed stage to Series A, providing both capital and operational support to enable entrepreneurs to scale climate change technologies and deploy innovations across African markets.
“This first completion demonstrates that early-stage climate innovation in Africa is an attractive sector and unique opportunity for investors. We are excited to begin the investment phase and continue to support entrepreneurs building companies in the energy, agriculture and resources sectors across Africa,” Persistent Partners said in a statement.
The fund is supported by a coalition of international development and impact investors, including FSD Africa Investments, the Nordic Development Fund and the African Sustainable Energy Fund managed by the African Development Bank. Other supporters include the Japan International Cooperation Agency, the Soros Fund for Economic Development, the Denmark Impact Fund, the Schmidt Family Foundation, and the Cottier-Donze Foundation.
The launch comes amid growing concerns about imbalances in global climate finance flows. Africa accounts for less than 4 percent of global greenhouse gas emissions, yet it receives less than 5 percent of climate finance worldwide.
Lack of financing remains one of the biggest barriers to climate resilience and green growth on the continent, according to Equity Group Holdings CEO James Mwangi.
At the same time, development finance institutions are stepping up efforts to expand energy infrastructure and electricity access across Africa. The European Investment Bank Group has announced that it will commit more than 1 billion euros (approximately $1.16 billion) to renewable energy investments across sub-Saharan Africa.
The pledge was announced by Nadia Calvigno during the bank’s fourth annual forum in Luxembourg. The funding will be deployed through EIB Global, the agency’s development arm responsible for international partnerships.
Projects funded under this initiative include solar and wind farms, hydropower plants, and power grids designed to strengthen power systems and expand access to electricity across the region.
“About 600 million people in sub-Saharan Africa still live without access to electricity,” Calviño said. “When some build walls, we build bridges and support international partnerships and win-win solutions for a more peaceful, stable and prosperous world.”
The investment is part of the Mission 300 electrification program, jointly led by the World Bank and the African Development Bank, which aims to connect 300 million people in Africa to electricity by 2030. The program focuses on decentralized renewable energy systems such as mini-grids and stand-alone solar power installations, as well as strengthening the national electricity grid.
Sidi Ould Tarr welcomed the EIB’s initiative, saying it would significantly increase the momentum of the initiative.
“The EIB’s €1 billion commitment is exactly the partnership that Mission 300 requires and strengthens our platform at a pivotal moment. The African Development Bank Group is proud to stand alongside the European Investment Bank and our partners to translate this ambition into connections on the ground,” said Tarr.
Mission 300 was officially launched during the Africa Energy Summit 2025 in Dar es Salaam, Tanzania, in January 2025.
A new venture capital fund and large-scale renewable energy financing signal a growing collaboration between private investors and development institutions to accelerate Africa’s energy transition while supporting innovation-driven climate solutions. Analysts say sustained financing at both the start-up and infrastructure levels will be critical if the continent is to expand access to clean energy, strengthen its resilience to climate change and reach its development goals.
