- James Mwangi, Africa Climate Venture CEO and founder of Dalberge Investors says by 2030 the organization will eliminate one million tonnes of carbon per year.
- The FSD Africa investments raised $1.078 million as a convertible loan to support the venture builder’s formalisation.
- FSD Africa will grant $93,392 to support the development of premium carbon credit, marketing of portfolio and pipeline companies.
FSD Africa investments have raised $1.078 million in Africa Climate Ventures (ACV), a pioneering venture builder working at improving Africa’s climate change response and carbon ecosystem. ACV seeks to address challenges associates with rapid climate change, which are affecting small-scale farmers throughout Africa.
Africa has significantly improved its economic development over the past decade. Its digital transformation has improved multiple industries, including agriculture through agritech. With this newfound technology, many innovators have set out to represent the continent’s innovators to potential investors.
Africa Climate Ventures’ focus
They each seek a slice of glory once they reach their true potential. And ACV is no different. It aims at building innovative businesses that can deal with a looming and possibly disastrous Africa’s experience with climate change. Within the past decade, the atmosphere has been significantly affected by carbon emissions.
As climate change progresses rapidly, it is throwing off balance the normal schedule of farmers around Africa. This scenario is threatening to worsen an already frail food security status in Africa. ACV venture, which has established a permanent capital in Kigali, is stepping in to help. It is determined to focus on carbon mitigation, capture and removal.
James Mwangi, ACV chief executive and founder of Dalberge Investors, stated that by 2030 the organisation aims to eliminate one million tonnes of carbon per year. Doing so will improve the lives of approximately 50 million Africans. Further, it will create at least 5,000 jobs as the organisation expands its reach.
Improving Africa’s response to climate change
Mr Mwangi is dedicating his expertise in improving Africa’s response to negative effects of climate change. He founded Climate Action Platform for Africa and won the 2022 Climate Breakthrough Award. His dedication aligned his path with the ACV ventures, placing him at a vantage point to deal with Africa’s carbon ecosystem.
In Mwangi’s team is Mohammed Cassim, and CJ Fonzi, who are building a portfolio for the climate-positive business across Africa. With ACV, they aim to launch and scale 15 climate-focused ventures in the next four years.
Other objectives include providing global climate technology to Africa, accelerating and de-risking the rapid digital transformation. This will be by ensuring they are climate-friendly and adding carbon revenue streams to existing African businesses. If the organisation achieves all its goals, it will effectively transform Africa’s climate.
FSD Africa supports ACV ventures
FSD Africa investments is a specialist financial development agency that receives funding from the UK government. It provided the necessary tools and resources to drive large-scale change in financial markets and support sustainable economic development. The ACV ventures’ inspiration, dedication and goals captivated the organisation leading them to keep their ideals.
The FSD Africa investments raised $1.078 million as a convertible loan to support the venture builder’s formalisation. This milestone will significantly develop the ACV venture’s capability to attract investments from more considerable funds and expand their operations.
“We are thrilled that FSDAi has joined us in building ACV. In addition, they have already been invaluable in refining the ACV mode,” Mwangi noted.
Furthermore, FSD Africa will grant $93,392 to support the development of premium carbon credit, a marketing of portfolio and pipeline companies. With this funding, ACV ventures gained a head start in dealing with Africa’s carbon ecosystem.
The ACV ventures also struck a deal with the investment agency, allowing them the right to invest up to £8 million in their planned 2024 close. Anne-Marie Chidezero, chief investment officer at FSD Africa, stated, “In backing the ACV partners, FSDAi sees a tremendous opportunity to galvanize global investment and finance to promote Africa’s status as the pre-eminent climate investment destination.”
Trajectory of change
With FSD Africa committed to supporting the ACV ventures, it directly contributes to Africa’s transition to net zero, the promotion of green technology. Renewable energy sources have gained popularity in various countries within the past decade.
Solar energy, green hydrogen, and wind energy have each gained some form of foothold in several industries. ACV ventures aim to reduce Africa’s carbon ecosystem and, in doing so, will support any startup that seeks to provide alternative energy sources.
This will encourage innovators to develop eco-friendly systems and businesses that will tackle climate change in Africa. With the initial investments of $1.078 million, around 600 job vacancies will be created.
Ultimately, FSD Africa believes the ACV venture can aid African businesses in the global carbon market and tap into the continent’s unrivalled natural resources for alternative energy.
Both organisations align with the emerging priorities of policymakers on addressing climate change.
Meanwhile, Kenya will host the next Africa Climate Summit. The forum will coordinate a unified, collective pan-African approach to guide discussion during COP 28 in Dubai in December.