Swedfund, Sweden’s Development Finance Institution, has invested $10 million in the Novastar Ventures Africa People and Planet Fund III (NVIII) to expand access to capital for African companies tackling climate change and development challenges through clean and climate-positive technologies.
At a time when Africa faces increasing climate risks, it is also emerging as a rising hub for climate and clean-tech innovation.
Through this indirect investment, Swedfund aims to catalyse funding for early-stage local businesses developing solutions in renewable energy, e-mobility, smart logistics, circular economy and regenerative agriculture.
“As the impacts of climate change intensify, it is critical to support businesses building resilient, low-carbon economies. Our investment seeks to unlock financing for innovative companies across Africa that improve lives and livelihoods while reducing emissions,” says Sofia Gedeon, investment director at Swedfund.
By investing in NVIII, a fund structure with broad reach and local presence in countries like Kenya and Nigeria, Swedfund enables capital to reach a larger number of high-impact companies across the continent. This approach supports market development, job creation and access to essential services in underserved communities.
Swedfund’s investment is made alongside other development finance institutions such as Norfund and British International Investment (BII).
The investment was signed in September, 2024
