Africa Climate Ventures raises Ksh.171M to support green tech start-ups

Africa Climate Ventures raises Ksh.171M to support green tech start-ups

U.S. Dollar and Euro banknotes. | REUTERS/Dado Ruvic/Illustration/

Africa Climate Ventures (ACV), a venture capital firm focused on climate action start-ups on the continent, has announced a Ksh.171 million (£1 million) investment from FSD Africa Investments.

The investment is in the form of a convertible loan to support ACV’s formalisation and build additional ventures as demonstrations to attract investment from larger funds.

On top of the investment, FSD Africa said it will provide Ksh.13 million (£75,000) in grant funding to support the development of premium carbon credits and the marketing of portfolio and pipeline companies.

ACV seeks to build a portfolio of climate-positive start-ups across Africa, with the ultimate aim of launching and scaling 15 ventures in the next four years.

Moving forward, FSD Africa has secured the right to invest up to Ksh.1.4 billion (£8 million) in ACV’s planned 2024 close.

“The involvement of FSDAi has already been invaluable in refining the ACV model. As we work towards ambitious objectives, we believe FSDAi will be a key partner in ensuring our success,” James Mwangi, the ACV CEO, said.

Mwangi said they aim to eliminate one million tonnes of carbon every year by 2030, while improving the lives of 50 million Africans and creating at least 5,000 jobs on the continent.

The VC firm already has two ventures in its portfolio; KOKO Networks Rwanda, a co-venture between ACV and KOKO Networks which provides sustainable bioethanol cooking fuel in Kenya and Rwanda, and Great Carbon Valley, a Kenya-based developer of direct-use clean energy applications.

“In backing the ACV partners, FSDAi sees a tremendous opportunity to galvanise global investment and finance to promote Africa’s status as the pre-eminent climate investment destination,’’ Anne-Marie Chidzero, CIO of FSD Africa Investments, said.

FSD Africa receives funding from the UK government and provides tools and resources to drive large-scale change in financial markets and support sustainable economic development.

There has been increased interest in green technology ventures as the world seeks to reduce carbon emissions and transition to green energy.

Just last week, Kenya-based climate tech start-up Amini announced the closure of a Ksh.275 million ($2 million) pre-seed funding round led by Swedish climate tech-focused venture capital firm Pale Blue Dot.

Amini uses artificial intelligence and satellite technology to create data infrastructure and address climate data scarcity in Africa.

Tags:

Citizen TV Citizen Digital Funding Tech news Start-ups Climate action

Want to send us a story? SMS to 25170 or WhatsApp 0743570000 or Submit on Citizen Digital or email wananchi@royalmedia.co.ke

Leave a Comment

Comments

No comments yet.

latest stories