African startups to receive 1billion Euro

Fresh capital commitments from international investors and development financiers are signaling renewed momentum for climate and energy investment across Africa, even as the continent continues to receive a disproportionately small share of global climate finance.

Climate venture builder Persistent has launched a $70 million investment vehicle aimed at scaling African startups developing climate solutions, while the European Investment Bank has pledged more than €1 billion to renewable energy projects across sub-Saharan Africa under a major electrification initiative.

Persistent announced the launch of the Persistent Africa Climate Venture Builder Fund (Persistent ACV Fund), a financing platform designed to support early-stage companies tackling climate challenges in sectors such as energy, agriculture and natural resource management. The fund has already secured an initial first close of $52 million and includes an additional $5 million venture-building facility 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 help entrepreneurs scale climate technologies and deploy innovations across African markets.

“This first close demonstrates that early-stage climate innovation in Africa is an attractive sector for investors and represents a unique opportunity.We are excited to begin the investment phase and to continue supporting entrepreneurs who are building companies in the energy, agriculture and resource sectors across Africa,” Partners at Persistent said in a statement.

The fund is backed by a coalition of international development and impact investors, including FSD Africa Investments, the Nordic Development Fund and the Sustainable Energy Fund for Africa managed by the African Development Bank. Additional supporters include the Japan International Cooperation Agency, the Soros Economic Development Fund, Impact Fund Denmark, the Schmidt Family Foundation and the Cottier Donzé Foundation.

The launch comes amid mounting concern about the imbalance in global climate finance flows. Although Africa produces less than 4 percent of global greenhouse gas emissions, it receives under 5 percent of climate finance worldwide.

According to the Chief Executive, Equity Group Holdings, James Mwangi,  the financing gap remains one of the biggest barriers to climate resilience and green growth on the continent.

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 announced it would commit more than €1 billion—about $1.16 billion—to renewable energy investments across sub-Saharan Africa.

The pledge was unveiled by Nadia Calviño during the bank’s fourth annual forum in Luxembourg. The financing will be deployed through EIB Global, the institution’s development arm responsible for international partnerships.

Projects financed under the initiative will include solar and wind farms, hydroelectric plants and electricity transmission networks designed to strengthen power systems and expand access to electricity across the region.

“Nearly 600 million people in Sub-Saharan Africa are still living without access to electricity,” Calviño said. “When some are building walls, we build bridges—supporting international partnerships and win-win solutions for a more peaceful, stable and prosperous world.”

The investment is part of the Mission 300 electrification programme, an initiative jointly led by the World Bank and the African Development Bank that aims to connect 300 million people in Africa to electricity by 2030. The programme emphasises decentralized renewable energy systems such as mini-grids and standalone solar installations while also strengthening national power grids.

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Sidi Ould Tah welcomed the EIB commitment, describing it as a critical boost to the initiative’s momentum.

“EIB’s €1 billion pledge is precisely the partnership that Mission 300 needs 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 turn this ambition into connections on the ground,” Tah said.

Mission 300 was officially launched during the African Energy Summit 2025 held in Dar es Salaam, Tanzania in January 2025.

Together, the new venture capital fund and the large-scale renewable energy financing illustrate a growing alignment between private investors and development institutions seeking to accelerate Africa’s energy transition while supporting innovation-driven climate solutions. Analysts say that sustained funding at both the startup and infrastructure levels will be critical if the continent is to expand clean energy access, strengthen climate resilience and meet its development goals.