Novastar Ventures Africa People and Planet Fund III (NVIII)
Introduction
Swedfund commits USD 10 million to the Novastar Ventures Africa People and Planet Fund III (NVIII) to increase access to capital for African companies that are tackling climate change and development challenges through clean and climate-positive technologies.
At a time when Africa faces increasing climate risks, it is also emerging as a rising hub for climate and clean-tech innovation. Through this indirect investment, Swedfund aims to catalyse funding for early-stage local businesses developing solutions in renewable energy, e-mobility, smart logistics, circular economy and regenerative agriculture.
Read more in our press release: Swedfund invests in African climate tech and innovation
Facts
SDG in focus
No Poverty
End poverty in all its forms everywhere.
Reduced Inequalities
Reduce inequality within and among countries.
Climate Action
Take urgent action to combat climate change and its impacts.
Value creation
Impact
The investment contributes to sector and market development by growing innovative early-stage companies that deliver sustainable solutions and improve access to essential products and services for underserved consumers. It also supports climate change mitigation and resilience by scaling clean-tech solutions that reduce emissions, enhance biodiversity, and strengthen climate adaptation for vulnerable communities.
Additionality
Swedfund’s investment is financially additional as it targets early-stage climate and clean-tech companies in Sub-Saharan Africa, a high-risk context with limited access to venture capital. The investment is value additional through active ownership and non-financial support, including operationalising impact, gender, and climate ambitions to enhance outcomes and mitigate risks.
ESG
Requirements
In line with Swedfund’s Policy for Sustainable Development, the portfolio company is required to materially comply with, inter alia: (i) all internationally recognised human rights (ii) the EDFI harmonized exclusion list and EDFI Fossil Fuel Exclusion List, (iii) local environmental, health & safety and labour laws and regulations, (iv) applicable IFC Performance Standards, (v) the ILO’s Declaration on Fundamental Principles and Rights at Work and the ILO’s Basic Terms and Conditions of Employment.
ESG Risk
E&S risk categorisation is Medium Risk/Impact (Fund-B), based on salient contextual risks related to climate, gender, and human rights in target countries, as well as sector-specific risks inherent in the tech portfolio companies.
ESG Mitigation Measures
Swedfund is supporting the company in strengthening its Environmental and Social Management System (ESMS) processes to effectively manage both E&S contextual and sector-specific risks, while also enhancing the manager’s internal E&S capacity. In addition, Swedfund is assisting the company in developing its Business Integrity Management System.
Applicable IFC Performance Standards
IFC Performance Standards (PS) 1-4 are applicable.
Whistleblowing channels and Grievance Mechanism
Swedfund’s whistleblowing services can be used by employees, contractors and others at Swedfund, and by the companies and funds in which Swedfund invests. The complaints mechanism can be used for all types of complaints concerning Swedfund and Swedfund’s portfolio companies, but not for complaints concerning individuals as a result of restrictions arising from data protection legislation. 🔹 Link in website footer.