Climate venture builder Persistent has launched a new $70 million investment vehicle aimed at supporting early-stage climate startups across Africa, marking a significant step in expanding funding for companies tackling the continent’s environmental and energy challenges.
The fund, known as the Persistent Africa Climate Venture Builder Fund (Persistent ACV Fund), is designed to invest in African startups developing climate solutions in key sectors such as clean energy, sustainable agriculture, and resource management. These sectors are increasingly seen as central to Africa’s ability to address climate change while sustaining economic growth and improving livelihoods.
The announcement, made on March 10, signals growing global investor interest in African climate innovation. Persistent confirmed that the fund has already secured $52 million in commitments at its first close, alongside an additional $5 million Venture Building Facility that will provide operational support to entrepreneurs.
Together, these resources are expected to help climate startups move beyond early-stage experimentation toward building scalable businesses capable of delivering meaningful environmental and economic impact across the continent.
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A New Investment Platform for African Climate Startups
The Persistent ACV Fund is structured as an early-stage climate investment fund domiciled in Mauritius and focused on backing innovative African companies working to address climate and sustainability challenges.
The fund will primarily target startups in the pre-seed, seed and Series A stages, which are typically the most difficult phases for entrepreneurs seeking investment capital. Early-stage climate startups often struggle to attract funding due to perceived risks, limited track records, and the complexity of scaling climate technologies.
By providing capital at these critical stages, Persistent aims to help startups overcome early financing barriers and accelerate their growth.
However, the fund’s strategy is not limited to early investment. It also retains the ability to provide follow-on funding to high-performing companies as they mature and demonstrate strong growth potential. This approach allows Persistent to support startups throughout their scaling journey rather than exiting too early in the development cycle.
Persistent ACV GP Ltd. will act as the general partner managing the fund, while Persistent Energy Capital, a venture capital firm specializing in early-stage climate investments in Africa, will serve as the fund’s advisor.
Through this structure, the investment vehicle combines venture capital expertise with local market knowledge and operational support, offering founders more than just financial backing.
Venture Building Support to Strengthen Startups
A distinguishing feature of the Persistent ACV Fund is its venture-building approach, which combines investment capital with hands-on support designed to strengthen startups and increase their chances of success.
The fund includes a $5 million Venture Building Facility (VBF) that will provide operational and strategic assistance to entrepreneurs receiving investment from the fund.
This facility, supported by development finance partners including the Nordic Development Fund and FMO, the Dutch entrepreneurial development bank, will help startups access expertise in several key areas, including:
- Financial management and fundraising strategy
- Business model development
- Technology and product development
- Legal and regulatory structuring
- Marketing and customer acquisition
- Environmental, social and governance (ESG) compliance
By offering this additional support, Persistent aims to reduce early-stage risks for startups while helping founders build stronger and more sustainable companies.
Many early-stage climate ventures fail not because their solutions lack potential, but because entrepreneurs often lack access to networks, operational guidance, and technical expertise. Persistent’s venture-building model is designed to bridge that gap by working closely with founders throughout the growth process.
Targeting Key Climate Sectors: Energy, Agriculture and Resources
One of the core areas of investment will be clean energy and electrification. Millions of Africans still lack reliable access to electricity, while economic growth continues to drive demand for power. Startups developing solar technologies, distributed energy systems, battery storage solutions, and innovative electrification models are expected to be key beneficiaries of the fund.
Another major focus will be climate-smart agriculture, an increasingly important area as rising temperatures, droughts and unpredictable rainfall patterns threaten food security across many parts of Africa. Startups offering solutions such as digital farming tools, improved irrigation systems, climate-resilient crops, and sustainable food supply chains may receive investment support.
The fund will also support companies working in resource management and circular economy solutions, including innovations in waste recycling, water conservation, and efficient resource use. These technologies can help reduce environmental pressures while creating new economic opportunities for communities and businesses.
By targeting these sectors, Persistent aims to support startups that not only generate financial returns but also contribute to long-term climate resilience and sustainable development across Africa.
Backed by a Global Coalition of Development Investors
The Persistent ACV Fund has attracted support from a wide range of international development finance institutions, philanthropic foundations, and impact investors.
The fund was developed in collaboration with FSD Africa Investments (FSDAi), which also serves as one of its anchor investors. FSDAi made an early $10 million commitment to help launch the investment vehicle and accelerate the growth of climate innovation across the continent.
Other anchor investors include:
- Nordic Development Fund (NDF), a development finance institution owned by the Nordic countries that focuses on climate and sustainable development projects.
- The Sustainable Energy Fund for Africa (SEFA), a multi-donor facility managed by the African Development Bank that supports renewable energy and energy access initiatives across the continent.
The fund’s first close also includes commitments from several other international investors and philanthropic organizations, including:
- Japan International Cooperation Agency (JICA)
- Soros Economic Development Fund, the impact investment arm of the Open Society Foundations
- Impact Fund Denmark, Denmark’s development finance institution
- The Schmidt Family Foundation, a U.S.-based philanthropic organization supporting climate solutions
- Cottier Donzé Foundation, a Swiss charitable foundation based in Küsnacht
The participation of such diverse global partners highlights the growing recognition that Africa’s climate transition will require strong collaboration between public, private and philanthropic investors.
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Addressing Africa’s Climate Financing Gap
The launch of the Persistent ACV Fund comes at a time when climate finance remains unevenly distributed globally.
Although Africa contributes less than 4% of global greenhouse gas emissions, the continent receives less than 5% of global climate finance, according to data cited by development finance institutions.
This imbalance has created significant challenges for entrepreneurs developing climate solutions tailored to Africa’s unique environmental and economic conditions.
Early-stage startups in particular often struggle to access the capital needed to move from concept to commercial scale. Without early investment support, many promising innovations fail to reach the market.
Persistent believes the ACV Fund can help bridge this gap by providing both capital and technical support to climate entrepreneurs.
“This first close demonstrates that early-stage climate innovation in Africa is an attractive sector for investors and represents a unique opportunity,” Persistent partners said in a statement.
“We are excited to begin the investment phase and continue supporting entrepreneurs building companies across Africa’s energy, agriculture and resource transitions.”
Delivering Environmental and Economic Impact
Beyond supporting startup growth, the Persistent ACV Fund is expected to generate measurable environmental and social benefits across the continent.
Over the life of the fund, Persistent estimates that its investments could:
- Mitigate more than 17 million tons of carbon emissions
- Reach over 7 million beneficiaries
- Create more than 60,000 direct jobs, with a strong focus on increasing opportunities for women
- Support over 420,000 households with new or improved electricity connections
- Economically impact more than 400,000 people
- Catalyse over $450 million in additional investment into African climate ventures
These projections highlight the broader role that venture capital can play in supporting sustainable economic development alongside climate mitigation.
Growing Momentum for Climate Investment in Africa
The launch of the Persistent ACV Fund reflects a wider trend of increasing climate investment across Africa.
In recent years, development finance institutions, venture capital firms and impact investors have been directing more capital toward sectors such as renewable energy, electric mobility, climate-resilient agriculture, and circular economy solutions.
Africa’s rapidly growing population, urbanization and rising demand for infrastructure have created new opportunities for climate innovation. At the same time, the continent’s vulnerability to climate change has made investment in resilience technologies increasingly urgent.
African entrepreneurs are responding to these challenges with a wave of new innovations tailored to local markets, from off-grid solar platforms to digital agriculture tools and climate data services.
Funds such as the Persistent ACV Fund aim to ensure these entrepreneurs have the resources needed to transform their ideas into scalable businesses capable of delivering long-term impact.
Outlook:
Looking ahead, the launch of the Persistent Africa Climate Venture Fund reflects a growing shift in how climate innovation is being financed across emerging markets.
As climate risks intensify and the need for sustainable infrastructure grows, investors are increasingly viewing Africa not only as a region vulnerable to climate change but also as a source of innovative solutions.
Early-stage climate startups are expected to play a central role in this transition. Technologies in distributed renewable energy, climate-smart agriculture, water management and circular economy systems could help African countries address both development needs and environmental challenges simultaneously.
If successful, the Persistent ACV Fund could act as a catalyst for a new generation of climate entrepreneurs across the continent. By combining venture capital with operational support and global development finance partnerships, the model aims to reduce investment risks while accelerating the commercialization of promising technologies.
Ultimately, initiatives like this could help unlock significantly larger flows of capital into Africa’s climate sector, strengthening startup ecosystems while supporting the continent’s transition toward sustainable, resilient and inclusive economic growth.
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Photo Source: Google
By: Rosemary Wambui
16th March 2026
