Swedfund boosts African climate tech and agriculture innovation with strategic investments 

AFRICA – Swedfund, Sweden’s Development Finance Institution, has announced a US$10 million commitment to the Novastar Ventures Africa People and Planet Fund III (NVIII), marking a great step in supporting African businesses developing climate-positive technologies. 

As climate change continues to pose growing risks across the continent, Africa is simultaneously emerging as a vibrant hub for climate and clean-tech innovation. 

Through its investment in NVIII, Swedfund aims to channel early-stage capital into local companies pioneering solutions in renewable energy, e-mobility, smart logistics, circular economy models, and regenerative agriculture. 

“As the impacts of climate change intensify, it is critical to support businesses building resilient, low-carbon economies,” said Sofia Gedeon, Investment Director at Swedfund. 

“Our investment seeks to unlock financing for innovative companies across Africa that improve lives and livelihoods while reducing emissions.” 

NVIII’s structure allows for broad reach and a strong local presence in key markets such as Kenya and Nigeria, enabling capital to reach a diverse range of high-impact startups. 

This model is designed to stimulate market development, job creation, and improved access to essential services, especially in underserved communities. 

This latest commitment follows a major joint investment in January 2025, when Swedfund partnered with British International Investment (BII) and Norfund to invest US$85 million in AgDevCo, a specialist investor focused on transforming agriculture in sub-Saharan Africa. 

The funding included up to US$50 million from BII, US$20 million from Swedfund, and US$15 million from Norfund. 

The AgDevCo investment targets small and medium-sized agribusinesses producing both local and export-oriented crops. It aims to improve food security, increase productivity, and build climate resilience in rural communities across sub-Saharan Africa. 

The approach addresses long-standing sectoral challenges such as limited financing, fragmented value chains, and climate vulnerabilities. 

In 2023 alone, AgDevCo-supported enterprises reached over 2.4 million small-scale farmers, customers, and traders, 29 percent of whom were women, and directly supported over 28,000 jobs. 

The organization reports that every dollar invested to date has generated US$2.50 in additional income for rural and peri-urban households. 

With continued investment, AgDevCo projects that by 2030, it will benefit four million farmers and support 60,000 jobs annually. 

Many of these enterprises are embracing regenerative agricultural practices that both mitigate climate risks and promote carbon sequestration, reinforcing the DFIs’ broader commitment to climate-positive development across the continent. 

Together, these investments signal a growing alignment between development finance and Africa’s transition to a greener, more inclusive economy, one powered by innovation, resilience, and local solutions.

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