Persistent has officially launched the Persistent Africa Climate Venture Fund, a new investment vehicle targeting $70 million to support early-stage climate ventures across the continent. The fund announced a successful first close of $52 million, signaling strong investor confidence in its mission to bridge a critical financing gap. This initiative, developed with FSD Africa Investments, combines equity investment with hands-on operational support to scale impactful climate solutions.
Addressing a Critical Financing Disparity
Africa faces a disproportionate share of global climate risks while receiving only a small fraction of international climate financing. Early-stage climate enterprises, in particular, struggle to access the capital and strategic guidance necessary to grow and achieve significant impact. The Persistent ACV Fund is specifically designed to address this disparity by backing Africa’s most innovative climate entrepreneurs.
A Unique Model of Capital and Support
The fund utilizes a blended finance structure that provides private investors with first-loss and priority return protections, making the asset class more attractive. This model is intended to de-risk investments and mobilize substantial private capital into the continent's climate sector. The fund’s strategy focuses on investments from pre-seed through Series A, with flexibility for later-stage follow-on funding.
Complementing its financial investments is a dedicated $5 million Venture Building Facility, funded by the Nordic Development Fund and Dutch development bank FMO. This facility offers portfolio companies tailored support in critical areas such as finance, strategy, technology, and marketing. This hands-on assistance is designed to accelerate growth, mature operations, and reduce early-stage execution risk.
Backed by a Coalition of Global Institutions
The fund’s successful first close was anchored by commitments from the Nordic Development Fund (NDF), the African Development Bank’s Sustainable Energy Fund for Africa (AfDB SEFA), and FSD Africa Investments (FSDAi). Their catalytic capital has been instrumental in establishing the fund and attracting a wider pool of investors. This backing underscores a shared commitment to fostering a robust climate innovation ecosystem in Africa.
Additional investors include the Japan International Cooperation Agency (JICA), the Soros Economic Development Fund (SEDF), and Impact Fund Denmark, among others. This diverse coalition highlights a growing global consensus on the investability of African climate ventures. Investor statements emphasized confidence in Persistent’s track record and the fund's potential to deliver both impact and returns.
Ambitious Goals for Climate and Social Impact
The Persistent ACV Fund has set ambitious targets that extend beyond financial performance to encompass significant environmental and social benefits. Over its lifetime, the fund aims to mitigate over 17 million tons of greenhouse gas emissions. It also seeks to catalyze more than $450 million in additional investment for its portfolio companies.
On a human level, the fund’s goals include positively impacting over seven million beneficiaries, with a specific focus on ensuring half are women. It also projects the creation of over 60,000 direct jobs and the provision of new or improved electricity connections to over 420,000 households. These objectives reflect a holistic vision for driving sustainable and inclusive development across the continent.
The launch of the Persistent Africa Climate Venture Fund represents a pivotal moment for Africa's climate technology landscape. By integrating catalytic capital with intensive, bespoke support, the fund is well-positioned to cultivate a new generation of entrepreneurs. Its success could establish a powerful and replicable blueprint for mobilizing the investment needed to address Africa's most urgent climate challenges.