The investment aims to reduce the critical funding gap faced by African climate tech startups.
On October 3, 2024, the International Finance Corporation (IFC) announced its first investment in a venture capital fund focused on climate tech companies in sub-Saharan Africa. IFC has committed $5 million to the Equator Africa Fund I, which targets early-stage climate startups in energy, agriculture, and sustainable mobility. The fund focuses primarily on companies in Kenya and Nigeria.
“Together we hope to address a critical financing gap for Seed and Series A-stage climate-tech companies as they scale in the region,” said Nijhad Jamal, Managing Partner of Equator. Africa faces significant climate challenges, needing an estimated $277 billion annually to tackle climate change. However, according to the African Development Bank (AfDB), the continent receives only $30 billion per year. African climate tech startups are turning to both local and international investors to raise funds.
Between January and May 2024, African climate tech attracted 45% of the total funding announced on the continent, about $325 million. According to Africa The Big Deal, this is a record high. In 2022, more than 500 climate tech startups across Africa raised $1.17 billion, representing 18% of all startup funding in Africa that year.
With IFC's contribution, Equator Africa Fund I has now raised $54 million. The fund held its first close in April 2023, securing $40 million, and is preparing for its final close, targeting a total of $60 million. The fund aims to make at least 15 investments and has already backed six companies. These include SunCulture, providing solar energy and irrigation systems to farmers; Roam, which designs and develops electric motorcycles and buses; Odyssey, supporting investments in renewable energy infrastructure; Apollo Agriculture, offering financing and advisory services to smallholder farmers; Ibisa, providing parametric insurance for climate risks; Downforce Technologies, involved in innovative climate solutions.
Equator Africa Fund I invests between $1 million and $2 million in seed-stage companies and $2 million to $4 million in Series A funding for more mature startups.
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....
• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...
• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...
• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 m...
As cybersecurity asserts itself as a pillar of digital sovereignty in West Africa, technology-free z...
Nigeria’s government launched a partnership to integrate digital literacy into rural primary and secondary schools. The initiative aims to tackle...
• Rwanda cut multidimensional child poverty nearly in half among 5–14-year-olds—from 25.3% to 11.9% between 2016 and 2024.• Free basic education and...
South32 plans to revise its 2026 production forecast for the Mozal aluminium smelter due to unresolved energy supply negotiations. The current...
The world’s renewable energy capacity grew by 582 GW in 2024 but still falls short of the 2030 tripling target. Africa’s renewable capacity...
Malawi’s Mount Mulanje and Cameroon’s Diy-Gid-Biy added to UNESCO World Heritage List Africa still holds 25% of endangered sites, despite recent...
Kolmanskop offers a haunting blend of lost wealth, colonial history, and the unstoppable force of nature. Located just a few kilometers inland from...