The Spanish Agency for International Development Cooperation has approved an investment of up to $10 million in the Novastar Ventures Africa People and Planet Fund III. The commitment is made through Spain’s Fund for Sustainable Development and reinforces the country’s push to support climate and impact investments in Africa. It also signals growing international confidence in African entrepreneurs who are building solutions for both people and the planet.
Novastar Ventures and the Africa People and Planet Fund III
Novastar Ventures, headquartered in Nairobi, is a venture capital firm specializing in early-stage, impact-driven businesses across the African continent. Its Africa People and Planet Fund III is a $200 million vehicle dedicated to technology-led companies that address climate change and social challenges facing low-income communities. The fund is designed to back around twelve scalable businesses that can deliver both strong commercial returns and measurable development impact.
Investment Strategy and Thematic Focus
Fund III targets sectors that sit at the intersection of climate action and inclusive growth. Priority areas include renewable energy, e-mobility, smart logistics, circular economy models, and regenerative agriculture that restore ecosystems while improving livelihoods. Through these themes, the fund aims to support companies that drive climate adaptation, resilience, and mitigation while expanding access to essential goods and services.
Expected Impact Across African Markets
The fund focuses on major markets in East and West Africa, including Kenya, Nigeria, Rwanda, South Africa, and Egypt. Its portfolio is expected to reach vulnerable populations living on or below six dollars per day by providing affordable products and services that strengthen climate resilience and economic security. Over its lifetime, the vehicle targets more than 30 million tonnes of greenhouse gas emissions avoided or removed, over 8 million tonnes of waste managed sustainably, and over 25 million people reached.
AECID’s Role in Global Development and Climate Action
AECID is Spain’s primary development cooperation agency, operating under the Ministry of Foreign Affairs through the Secretariat of State for International Cooperation. It designs and implements programs that combat poverty and promote sustainable human development, working through technical cooperation, budget support, grants to civil society, and humanitarian action. Its mandate is closely aligned with the UN Sustainable Development Goals, including gender equality, environmental quality, and respect for cultural diversity.
Strategic Alignment Through the Fund for Sustainable Development
The investment in Novastar’s Africa People and Planet Fund III is made via the Fund for Sustainable Development, which AECID uses to channel patient capital into high impact projects. By backing a specialist African climate and inclusion fund, AECID is extending its toolkit beyond traditional aid instruments into catalytic venture finance. This move allows Spain to support market based solutions that can scale faster than grant funded projects while remaining firmly anchored in development objectives.
A Growing Coalition of Global Backers
AECID joins an international group of institutional investors that have already committed capital to the fund. These include the Japan International Cooperation Agency with a $10 million ticket and the Green Climate Fund with a $40 million investment aimed at crowding in further public and private capital. Together, these backers form a coalition aligned around the belief that African founders can chart a clean and inclusive development path for the continent and contribute to global climate goals.
The Spanish agency’s commitment to Novastar Ventures Africa People and Planet Fund III strengthens a rising wave of climate and impact-focused capital flowing into African innovation. It combines Spain’s development cooperation agenda with a venture capital vehicle built to deliver both financial and societal returns. As the fund deploys into climate-focused, technology-enabled businesses across the continent, it is positioned to help African entrepreneurs build a more resilient, low-carbon, and inclusive economic future.