Swedfund, Sweden’s development finance institution, has pledged USD 20 million to the Helios Climate, Energy, Adaptation and Resilience (CLEAR) Fund, a Pan-African investment vehicle backing green technology and climate-focused businesses. The move aims to accelerate sustainable growth, support climate-smart innovations, and create green jobs across the continent.
The funding will channel capital to African companies that reduce carbon emissions, strengthen resilience, and drive low-carbon development in sectors such as renewable energy, sustainable transport, climate-smart agriculture, resource efficiency, and digital climate solutions.
“By investing in this sector, we can reduce emissions, build resilience, and create green jobs, all vital for sustainable growth that benefits more people,” said Gunilla Nilsson, Investment Director for Energy & Climate at Swedfund. “Through Helios CLEAR we help build the next generation of African climate-focused businesses.”
Africa currently contributes less than 3% of global carbon emissions but faces some of the most severe impacts of climate change. At the same time, the continent’s energy demand is expected to triple by 2050, highlighting the urgent need for sustainable energy and climate adaptation solutions.
Swedfund’s investment is designed to fill a major funding gap for climate-oriented ventures, particularly those led by local entrepreneurs and startups developing technologies that tackle climate change and support inclusive economic growth. The commitment also positions Helios CLEAR to mobilize additional capital from other development finance institutions and private investors.
What This Means for MSMEs
For early-stage and growth-stage businesses in the green economy including renewable energy providers, agritech innovators, clean-transport solutions, and digital platforms focused on climate risk access to growth capital remains scarce. This $20m infusion will help expand funding opportunities for African greentech startups, enabling them to scale operations, improve technology, and attract further investment.
Experts believe that directing capital toward climate-smart enterprises will create a virtuous cycle of innovation, job creation, and sustainable competitiveness. This is particularly significant for MSMEs, which often lead local economic activity but struggle to access finance for high-impact, long-term ventures.
The Helios CLEAR Fund, managed by Helios Investment Partners, is one of the first dedicated climate-focused funds on the continent that targets both climate mitigation and adaptation outcomes while enabling robust financial returns.
