Launch of the Nectar Fund. PHOTO; WWF
A new financing initiative aimed at helping African businesses scale climate adaptation and biodiversity solutions has been launched by the World Wide Fund for Nature (WWF) together with Norway through the Norwegian Agency for Development Cooperation (Norad) and the Norfund investment fund.
Announced on February 24th, 2026, the WWF Nectar Fund will provide grants and targeted technical assistance to African enterprises developing climate-resilient and biodiversity-positive solutions.
The initiative is backed by a three-year commitment of NOK 60 million (approximately $5 million) from Norway.
In its initial phase, the fund will support at least 14 enterprises operating in Kenya, Tanzania, and Madagascar, regions where climate change and biodiversity loss are already affecting livelihoods and ecosystems.
For businesses, the fund will provide flexible grant financing alongside hands-on advisory support. This assistance is intended to help enterprises improve internal systems, refine growth strategies and demonstrate measurable environmental and social impact.
For investors, including development finance institutions and commercial capital providers, the facility will help build a curated pipeline of vetted investment opportunities. These enterprises will be supported through WWF’s technical expertise and its on-the-ground presence across key African landscapes.
In Kenya, WWF-Kenya Chief Executive Officer Jackson Kiplagat described the fund as part of a growing shift toward innovative financing models that link conservation with economic opportunity.
He said such approaches could help unlock barriers that have long prevented nature-based solutions from attracting commercial investment.
“Bankable Nature Solutions can be leveraged by all stakeholders, including businesses, to tackle major threats facing the planet, particularly biodiversity loss and climate change,” Kiplagat said.
By focusing on African enterprises operating at the intersection of climate resilience, biodiversity protection and community livelihoods, the WWF Nectar Fund aims to demonstrate how targeted early-stage support can unlock larger flows of capital for nature-based development across the continent.
The fund also builds on WWF’s existing Bankable Nature Solutions network, which has been used to connect conservation-focused enterprises with investors.
That approach has already been applied in programmes such as the Dutch Fund for Climate and Development (DFCD), where nature-based enterprises receive early support before transitioning to larger investment vehicles.
According to WWF, the Nectar Fund will act as an additional sourcing channel feeding into its broader investor network while strengthening collaboration with development finance partners.
Aaron Vermeulen, Global Finance Practice Lead at WWF, said the initiative seeks to unlock the potential of African entrepreneurs who are already building solutions to climate and environmental challenges.
“Across Africa, we see entrepreneurs building powerful solutions for climate resilience and nature, but too many of these businesses fall into the ‘missing middle’ – too early or too risky for traditional investors,” Vermeulen said.
“By combining grants, technical assistance, and our conservation expertise, we can help transform promising nature-positive businesses into investable opportunities and channel more capital to the people and places that need it most.”
The initiative responds to a persistent challenge in climate and conservation financing: many promising African enterprises fall into the so-called “missing middle,” too small or early-stage to attract traditional investment but too large for small grants alone.
By supporting these companies to refine business models, improve impact measurement and strengthen investment readiness, the Nectar Fund aims to accelerate capital flows into landscapes where communities and ecosystems face the most severe climate pressures.
Gunn Jorid Roset, Director General of Norad, said the facility demonstrates how public funding can be used strategically to mobilise larger investment flows.
“Climate adaptation and nature protection require far more capital than public budgets alone can provide,” Roset said. “By strengthening African enterprises and creating a credible pipeline for investors, we help unlock larger flows of capital and deliver measurable results for climate, biodiversity and communities.”
Norway’s Ambassador to Kenya, Siv Cathrine Moe, said the fund reflects Norway’s broader Africa strategy built around partnerships and locally driven solutions.
“The Nectar Fund reflects this commitment by backing African enterprises that are designing practical, home-grown solutions to climate and nature challenges,” she said. “When strong local businesses access the financing they need to scale, we strengthen communities, protect ecosystems and support sustainable growth.”
The Norfund development finance institution will work alongside WWF and Norad, providing investment expertise to identify enterprises, sharing deal pipelines, and supporting learning on climate and biodiversity investment themes.
William Nyaoke, Norfund’s regional director for East Africa, said scaling climate adaptation in the region will require significantly greater investment but faces a shortage of investable projects.
“Mobilising capital at the scale required demands a strong pipeline of viable projects,” he said.
“By helping promising African enterprises move from impact potential to scalable investment-ready solutions, the Nectar Fund can strengthen climate resilience, protect biodiversity, and benefit local communities.”
