Swedfund Pledges $20M to Africa-Focused Climate Fund

The Helios Climate, Energy, Adaptation and Resilience (CLEAR) fund, an Africa-focused climate investment vehicle, has secured a $20 million commitment from Sweden’s development finance institution, Swedfund.

The investment will be instrumental for businesses driving low-carbon and sustainable growth across the continent, with a focus on renewable energy, sustainable transport, climate-smart agriculture, resource efficiency and digital climate solutions.

Swedfund said the funding would also strengthen the capacity of local enterprises and smallholder farmers to adapt to the growing impacts of climate change, helping to advance a more inclusive and resilient economic transition in Africa.

“By investing in this sector, we can cut emissions, build resilience and create green jobs - all of which are critical to sustainable growth that benefits more people,” said Gunilla Nilsson, Swedfund’s investment director for energy and climate. “Through Helios CLEAR, we are supporting the next generation of African climate-focused businesses.”

The commitment comes against the backdrop of Africa’s disproportionate exposure to climate risks, despite the continent accounting for less than three per cent of global carbon emissions.

According to the Global Landscape of Energy Transition Finance 2025 report published by the International Renewable Energy Agency (IRENA) in November, sub-Saharan Africa attracted just 2.3 per cent of global renewable energy investment in 2024. While investment in the region rose to $18 billion last year, up from an average of $14 billion between 2022 and 2023, it remains far below what is required.

Energy demand in Africa is projected to triple by 2050, underscoring the scale of the financing challenge. Swedfund said its investment in the Helios CLEAR fund is intended not only to support a greener and more inclusive African economy, but also to help mobilise additional private capital for critical climate initiatives across the continent.