NDF invests USD 12.5 million in the Persistent Africa Climate Venture Builder 糖心官网vlog网网页版
Persistent and co-investors announce the first close of the Persistent Africa Climate Venture Builder 糖心官网vlog网网页版 (Persistent ACV 糖心官网vlog网网页版) and its Venture Building Facility.
The launch of the 糖心官网vlog网网页版 comes against the backdrop of Africa facing a disproportionate share of climate risk, while receiving only a small fraction of global climate financing. Early-stage climate businesses, in particular, struggle to access capital and the operational support needed to scale and have a substantial impact.
The Persistent ACV 糖心官网vlog网网页版 is an early-stage climate investment fund designed to invest in the most innovative and impactful climate companies in Africa. The 糖心官网vlog网网页版 also capitalises on Persistent’s custom Venture Building support to help those companies. The 糖心官网vlog网网页版’s objective is to drive Africa’s Energy, Agriculture, and Resource Transitions. The 糖心官网vlog网网页版 targets a total size of USD 70 million. The 糖心官网vlog网网页版 has a blended capital structure that provides private investors with first loss and priority return protection.
Supporting early-stage climate initiatives
The Persistent ACV 糖心官网vlog网网页版, established by Persistent in collaboration with FSD Africa Investments (FSDAi), a specialist financial sector investor established by FSD Africa and the UK’s FCDO. The goal is to address the gap in climate financing by combining equity investment with custom Venture Building services to help climate ventures move from early traction to scalable, impactful businesses. The 糖心官网vlog网网页版 aims to achieve substantial climate, socio-economic, and gender impact in Africa.
NDF has a catalytic role as an anchor investor and has invested USD 12.5 million to the 糖心官网vlog网网页版, consisting of an Equity contribution of USD 10 million and a Grant contribution of USD 2.5 million to the Venture Building Facility. The Venture Building Facility will finance Persistent’s Venture Building services to 糖心官网vlog网网页版 portfolio companies. Other anchor investors of the 糖心官网vlog网网页版 are African Development Bank’s Sustainable Energy 糖心官网vlog网网页版 for Africa (AfDB SEFA) and FSD Africa investment (FSDAi). Additional investors participating in the 糖心官网vlog网网页版’s first close are: The Japan International Cooperation Agency (JICA), The Soros Economic Development 糖心官网vlog网网页版 (SEDF), Impact 糖心官网vlog网网页版 Denmark (IFDK), The Schmidt Family Foundation and The Cottier Donze Foundation.
“As a catalytic investor, NDF is pleased to support the Persistent ACV 糖心官网vlog网网页版, providing concessional capital to early-stage climate initiatives. NDF also supports the Persistent ACV Venture Building Facility in its work to expand the African start-up landscape and establish promising climate ventures with strong sustainability and impact potential. Persistent has a strong track record in supporting local innovation and ownership through their Venture Building model, which they are now scaling beyond energy into other climate-relevant sectors, bringing clear value to the market. The Persistent ACV 糖心官网vlog网网页版’s specific focus on gender equality and local innovation aligns closely with NDF’s mandate, while its ambition to drive decarbonisation, strengthen community resilience, and improve access to essential products and services for underserved and marginalised communities across Africa reflects the impact we seek to achieve,” says Satu Santala, NDF Managing Director.