Africa’s clean energy transition just got a major boost as Swedfund, Sweden’s development finance institution, commits $10 million to Novastar Ventures’ Africa People and Planet Fund III. The strategic investment targets high-impact startups driving sustainable solutions across the continent’s fastest-growing economies.
The funding will accelerate innovations in renewable energy, including off-grid solar solutions, Circular economy (waste-to-value technologies), and climate-smart agriculture.
With Kenya and Nigeria as key focus markets, Novastar’s portfolio already showcases transformative ventures. This includes BasiGo, a Kenyan electric bus pioneer that secured $42 million in 2024 to decarbonize public transport. Also involved is an unnamed agri-tech startup converting farm waste into energy and fertilizer, for an initial $3.5 million investment.
This third fund builds on Novastar’s proven track record since 2014, when Africa’s entire VC ecosystem was worth just $200 million. Today, the firm manages $260+ million, reflecting the explosive 400% growth of climate-tech investing on the continent.
Swedfund joins heavyweight partners like British International Investment and Norfund, signaling strong international confidence in Africa’s green entrepreneurship wave. Their capital doesn’t just fight climate change – it creates jobs, with portfolio companies already employing 5,000+ Africans in sustainable industries.
As global investors increasingly back homegrown solutions, Africa’s startups are proving they can simultaneously drive environmental impact and economic transformation – one solar panel, electric bus, and smart farm at a time.
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