Swedfund, Sweden’s Development Finance Institution, has pledged $10 million to support African companies working in the fields of clean tech and climate-positive tech, which aim to address issues such as climate change and economic development.
This funding will be channeled through the Novastar Ventures Africa People and Planet Fund III (NVIII).
Africa is currently facing significant climate risks. However, several innovative startups on the continent are attempting to tackle these challenges through clean and climate-positive technologies.
With this investment, Swedfund aims to promote funding for early-stage local enterprises developing solutions in renewable energy, e-mobility, smart logistics, the circular economy, and regenerative agriculture.
THE COMPANY HAD PREVIOUSLY INVESTED IN AFRICA AS WELL
Swedfund had previously invested in the NVIII fund, which has a strong local presence and wide reach in countries such as Kenya and Nigeria.
Through this fund structure, Swedfund enables capital to reach a larger number of high-impact companies across the continent. This investment strategy contributes to job creation, market development, and greater access to essential services.
Regarding this latest investment, Swedfund’s Investment Director Sofia Gedeon stated:
“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.”