Impact Fund Denmark is investing USD 4 million (DKK 25 million) in the Persistent Africa Climate Venture Fund, which will finance early-stage climate startups across Africa. The African continent faces major climate challenges, but it is also home to a new generation of entrepreneurs developing the solutions of the future in areas such as renewable energy, e-mobility and energy efficiency.
The challenge is that many African entrepreneurs lack access to risk capital in the early stages. With this investment, Impact Fund Denmark is supporting the development of the climate solutions the continent needs. Without access to capital, many of the most promising solutions risk never being realised.
I think this is an incredibly exciting fund. In Kenya, I personally visited a startup in which the venture fund is investing. The entrepreneur had strong ambitions to create greener transport. He had developed the technology, built a strong team and completed the market analysis, but he lacked the capital needed to move forward. That is why it makes so much sense for us to invest through the Persistent Africa Climate Venture Fund.
The fund has so far raised USD 52 million (DKK 335 million). In addition to Impact Fund Denmark, the investor group includes Nordic Development Fund, FSD Africa, the African Development Bank and the Soros Economic Development Fund. In addition, FMO and Nordic Development Fund have agreed to fund Persistent’s venture building facility.
With this investment in the Persistent Africa Climate Venture Fund, Impact Fund Denmark is helping strengthen the ecosystem that can bring more African climate solutions from idea to growth companies. The fund expects to create 60,000 jobs and provide green electricity to 420,000 people across Africa.
The investment was made by Impact Fund Denmark’s venture capital team.
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Thøger Kirk
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