Swedfund, Sweden’s development finance institution, has committed $10 million to Novastar Ventures’ Africa People + Planet Fund III (NVIII), a venture capital fund targeting early-stage businesses in Africa.
The investment aims to support startups developing solutions in renewable energy, e-mobility, smart logistics, the circular economy, and regenerative agriculture.
NVIII, managed by Novastar Ventures, seeks to raise over $200 million to invest in approximately 12 technology companies addressing climate change challenges and improving livelihoods for low-income populations.
The fund’s strategy includes investing in businesses that offer clean utilities, electric mobility, and sustainable agricultural practices, aiming to reach over 25 million stakeholders and mitigate more than 30 million tonnes of greenhouse gas emissions by the end of its life.
Swedfund’s investment aligns with its mission to reduce poverty through sustainable investments in developing countries.
By supporting NVIII, Swedfund aims to catalyze funding for innovative companies that build resilient, low-carbon economies across Africa.
Other development finance institutions, including Norfund and British International Investment, have also invested in NVIII, demonstrating a coordinated effort to bolster long-term investment in Africa’s green economy.
A notable investment from NVIII is in Sistema.bio, a Nairobi-based company specializing in biogas technology for smallholder farmers.
Sistema.bio’s solutions convert animal waste into renewable energy and biofertilizer, benefiting over 100,000 farmers in sub-Saharan Africa.
This investment supports the fund’s goal of promoting sustainable agriculture and renewable energy solutions across the continent.
Novastar Ventures, with offices in Nairobi, Lagos, and London, has a track record of investing in early-stage ventures in East and West Africa.
The firm’s previous funds have supported startups in sectors such as agriculture, education, and off-grid renewable energy, targeting low-income communities.
Through NVIII, Novastar aims to continue supporting businesses that contribute to climate adaptation, resilience, and mitigation, while also unlocking economic opportunities for vulnerable populations across Africa.
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