Africa Climate Ventures (ACV), a Rwanda-based venture fund that invests in “green” companies across Africa, recently borrowed EUR 1 million (USD 1.1 million) in the form of a convertible loan from Financial Sector Deepening (FSD) Africa Investments, an affiliate of the Kenya-based NGO FSD Africa. FSD Africa Investments is supporting the loan with a donation of EUR 75,000 (USD 80,400) intended to help ACV begin financing carbon credits and recruit additional investors.
ACV invests in early-stage companies with “under-exploited carbon potential.” The firm, which plans to close its first funding round in early 2024, has invested in two startups as of 2023: (1) Koko Networks Rwanda, which sells ethanol as a cooking fuel; and (2) Kenya-based Great Carbon Valley, which aims to capture carbon in East Africa using technology powered by geothermal energy. ACV has six employees and is headquartered in the city of Kigali.
Founded in 2012, and funded by the UK Department for International Development, FSD Africa is involved in research, events, training and technical assistance intended to support regional governments as well as private actors. The organization has 70 employees active in 31 countries across the continent. While FSD Africa focuses on capital market development through government outreach and advocacy, FSD Africa Investments is the “investing arm” of the NGO and is co-owned by the UK’s Foreign, Commonwealth and Development Office. FSD Africa Investments has 12 outstanding debt and equity placements according to undated information on their website.
By Rohit Dayanand, Research Associate
Sources and Additional Resources
FSD Africa press release
https://fsdafrica.org/press-release/fsd-africa-investments-backs-africa-climate-ventures/
ACV homepage
https://africaclimateventures.com/
FSD Africa 2022 impact report
https://fsdafrica.org/publication/impact-report-2022/
Koko Networks Rwanda webpage
https://rwanda.kokonetworks.com
Great Carbon Valley homepage
https://greatcarbonvalley.com
Previous MicroCapital brief on FSD Africa
https://www.microcapital.org/microcapital-brief-fsd-africa-seep-network-to-fund-research-on-savings-groups/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Download a sample at https://www.microcapital.org/products-page/.
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