The Japan International Cooperation Agency (JICA) has formally committed $10m to the Persistent Africa Climate Venture Builder Fund (ACV Fund), a closed-ended vehicle managed by Persistent Energy Capital LLC.
The investment targets early-stage climate tech startups across Sub-Saharan Africa. The capital injection comprises $5m allocated to the fund’s junior tier and $5m to its catalyst tier, reflecting a growing reliance on blended finance structures to de-risk private capital in emerging markets.
JICA’s commitment is the first under its newly established “Private Finance Mobilization Operations” scheme, a mechanism announced at the 9th Tokyo International Conference on African Development (TICAD 9) in August 2025 to crowd in private institutional capital. Japanese private sector investors, such as Kyushu Electric Power Group’s Kyuden International, are also participating in the fund.
The ACV Fund’s capital stack highlights a coordinated effort by global development finance institutions (DFIs) to address the structural constraints facing early-stage African climate ventures — namely, a lack of equity, shallow technical talent pools, and high perceived risk.
Alongside JICA, the fund has secured backing from a roster of major European and global institutions:
- Impact Fund Denmark (IFDK): Recently invested $4m (DKK 25m).
- FMO (Dutch Entrepreneurial Development Bank): Approved a €2.5m grant to capitalize a dedicated Venture Building (VB) Facility within the fund.
- African Development Bank (AfDB): Anchored the fund with a $10m commitment in 2024 through its Sustainable Energy Fund for Africa (SEFA), aiming to mobilize up to $70m in total capital.
- Other backers: The Nordic Development Fund (NDF), the UK’s FSD Africa Investments (FSDAi), and the Soros Economic Development Fund.
The Venture Builder model
Founded in 2012, Persistent operates as a venture builder rather than a traditional venture capital firm. This model pairs early-stage equity with heavy operational support, covering finance structuring, legal compliance, ESG integration, and milestone tracking.
The ACV Fund targets startups operating in distributed solar, energy efficiency, electric mobility, agritech, and the circular economy. Its geographical focus spans both mature and nascent tech hubs, including Nigeria, Kenya, Ghana, Senegal, Côte d’Ivoire, Cameroon, Ethiopia, and the Democratic Republic of Congo.
DFIs often cite governance and reporting as weak points in early-stage African ventures. Persistent’s venture-builder approach is designed to improve the investment readiness and scalability of these companies before they reach the growth stages requiring institutional capital.
According to fund projections, the ACV portfolio is expected to support the deployment of 200MW of renewable energy capacity, extend energy access to over 420,000 households and 31,000 businesses, and avoid 17m tonnes of CO₂e emissions. The fund also aligns with the 2X Challenge framework, mandating targeted support for women-led and women-managed enterprises.
However, as with most impact forecasts, these figures rely heavily on successful capital deployment and the ability of startups to secure follow-on funding.
The heavy DFI presence signals a clear consensus: addressing Africa’s $2.8tn climate finance gap requires blending concessional support with equity to make the unit economics work for both impact and returns.