Africa Climate Venture (ACV) has received new funding. This is a convertible loan of £1 million (around $1.25 million) granted by FSD Africa Investments (FSDAI), the investment arm of the financial development agency FSD Africa. The venture capital firm will use this funding to step up its support for green start-ups with a high impact on the climate in Africa.
“The aim is to create a group of climate-smart companies on the continent, to encourage participation in global carbon markets”, says ACV. This initiative should make a significant contribution to efforts to adapt to and mitigate climate change on the continent.
The creation of the first “climate unicorns
Although Africa emits only 4% of greenhouse gases (GHGs), it is subject to more shocks than other continents and is the most exposed to the effects of climate change and variability. To promote the continent’s participation in global carbon markets, the venture capital company ACV, headed by climate entrepreneur James Mwangi, also aims to create Africa’s first “climate unicorns”.
FSDAI, the regional programme funded by UK International Development and operating in more than 30 countries with its head office in Kenya, is also delighted with the deal, which represents “a remarkable step forward in promoting climate investment, fostering sustainable businesses and positioning Africa as a key player in the global climate economy”. The initiative also aims to stimulate the mobilisation of capital, job creation and the continent’s transition to a greener, more sustainable future.
Inès Magoum