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In a strategic move to bolster Africa’s clean-tech and climate resilience sectors, Swedfund, Sweden’s Development Finance Institution (DFI), has committed USD 10 million to the Novastar Ventures Africa People and Planet Fund III (NVIII). This investment aims to expand access to capital for early-stage African companies that are tackling climate and development challenges through climate-positive technologies.
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Swedfund’s contribution—finalized in September 2024—will help catalyze financing for innovative businesses across Africa focused on renewable energy, e-mobility, circular economy, smart logistics, and regenerative agriculture. The NVIII fund is actively investing in markets with strong startup ecosystems like Kenya and Nigeria.
“As the impacts of climate change intensify, it is critical to support businesses building resilient, low-carbon economies,” said Sofia Gedeon, Investment Director at Swedfund. “Our investment seeks to unlock financing for innovative companies that improve lives and livelihoods while reducing emissions.”
Accelerating Africa’s Climate-Tech Innovation
Africa is rapidly emerging as a frontier for climate-tech innovation, despite facing growing climate risks. Swedfund’s investment in NVIII underscores a broader shift toward inclusive green growth, where private capital and development finance work hand-in-hand to accelerate solutions for both people and the planet.
The Novastar Ventures Fund III is structured to reach high-impact businesses across multiple countries, leveraging its on-the-ground presence and extensive local networks. By doing so, it promotes market development, job creation, and expanded access to essential services in underserved communities.
Backed by Leading Development Finance Institutions
Swedfund joins other major DFIs—including Norfund (Norway) and British International Investment (BII)—in backing NVIII. Together, these institutions are pooling capital to support scalable, early-stage African ventures with the potential to deliver climate resilience, social impact, and long-term financial returns.
This investment aligns with Sweden’s broader strategy for international development cooperation, emphasizing climate action, sustainable enterprise development, and private-sector-led growth.
