African Startups Set to Receive €1bn in Fresh Funding

African startups, including those in Nigeria, are set to benefit from a fresh wave of climate and energy financing as investors and development institutions increase funding across the continent.

The new commitments point to growing interest in Africa’s clean energy and climate innovation space, even though the continent still receives only a small fraction of global climate finance.

Climate venture builder Persistent has launched a $70 million investment vehicle to support African startups building climate-focused solutions. At the same time, the European Investment Bank (EIB) has committed more than €1 billion to renewable energy projects in sub-Saharan Africa under a wider drive to expand electricity access.

Persistent said its new platform, known as the Persistent Africa Climate Venture Builder Fund, will back early-stage businesses working on climate solutions in areas such as energy, agriculture, and natural resource management. The fund has already reached a first close of $52 million and also includes a $5 million venture-building facility to help create and incubate new companies.

The fund will target startups from the seed stage to Series A, combining capital with hands-on operational support to help founders grow their businesses and scale climate technologies across African markets.

In a statement, partners at Persistent said the first close shows that early-stage climate innovation in Africa is becoming increasingly attractive to investors. They added that the next phase would focus on supporting entrepreneurs building companies in the energy, agriculture, and resource sectors across the continent.

The fund is backed by several international development and impact investors, including FSD Africa Investments, the Nordic Development Fund, and the Sustainable Energy Fund for Africa, which is managed by the African Development Bank. Other supporters include the Japan International Cooperation Agency, the Soros Economic Development Fund, Impact Fund Denmark, the Schmidt Family Foundation, and the Cottier Donzé Foundation.

The funding announcement comes at a time when concern is growing over Africa’s weak share of global climate finance. Although the continent contributes less than 4 per cent of global greenhouse gas emissions, it receives under 5 per cent of climate finance worldwide.

James Mwangi, chief executive of Equity Group Holdings, said the financing gap remains one of the biggest obstacles to climate resilience and green growth in Africa.

Beyond startup funding, development finance institutions are also increasing support for energy infrastructure. The EIB Group said it will provide more than €1 billion, roughly $1.16 billion, for renewable energy investments across sub-Saharan Africa.

The commitment was announced by Nadia Calviño during the bank’s fourth annual forum in Luxembourg. The financing will be channelled through EIB Global, the institution’s development arm responsible for international partnerships.

The projects covered under the initiative will include solar and wind farms, hydroelectric power plants, and electricity transmission networks aimed at improving power supply and expanding electricity access across the region.

Calviño said nearly 600 million people in sub-Saharan Africa still live without electricity, stressing that stronger international partnerships are needed to deliver more stable and prosperous outcomes.

The investment forms part of the Mission 300 electrification programme, a joint initiative by the World Bank and the African Development Bank that aims to connect 300 million Africans to electricity by 2030. The programme focuses on decentralised renewable energy systems such as mini-grids and standalone solar, while also strengthening national grids.

Sidi Ould Tah welcomed the EIB’s commitment, describing it as a major boost for Mission 300 at a critical stage. He said the partnership would help turn the programme’s ambition into real electricity connections on the ground.

Mission 300 was formally launched at the African Energy Summit 2025 in Dar es Salaam, Tanzania, in January 2025.

Taken together, the new startup fund and the large-scale renewable energy pledge reflect a stronger alignment between private capital and development finance institutions. Analysts say this mix of startup investment and infrastructure funding will be vital if Africa is to expand access to clean energy, build climate resilience, and meet its long-term development goals.