Tue. Jun 24th, 2025

Swedfund Commits $10 Million to Boost African Green Startups

Swedfund, Sweden’s development finance institution, has invested $10 million in Novastar Ventures’ third fund, officially designated as the Novastar Ventures Africa People and Planet Fund III (NVIII), targeting climate-positive technologies across Nigeria and Kenya.

The fund specifically focuses on African startups developing solutions in renewable energy, energy-efficient appliances, sustainable logistics, circular economy initiatives, and regenerative farming methods. This strategic investment joins other major development finance players including British International Investment and Norwegian Norfund in supporting innovative African businesses.

Novastar’s growing influence in African venture capital is evident through its management of over $260 million in assets, reflecting the rapid growth of climate-focused investment across the continent. The firm’s portfolio includes notable success stories like BasiGo, a Kenyan electric bus company that raised $42 million in October 2024 to expand its electric vehicle operations.

The NVIII fund made its inaugural investment in January 2025, committing $3.5 million to a company that transforms agricultural waste into energy and fertilizer, directly benefiting smallholder farmers. This investment model exemplifies the fund’s commitment to creating both environmental and social impact.

Since launching its first fund in 2014 with $80 million when Africa’s entire VC ecosystem was estimated at $200 million, Novastar has consistently backed innovative startups that address continental challenges while creating sustainable business models.

Source: orientalnewsng.com

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