Equator Africa, a leading venture capital firm dedicated to supporting climate tech innovation across Sub-Saharan Africa, has received a significant boost with an additional $5 million investment from the International Finance Corporation (IFC). This investment builds upon the firm’s initial $40 million fundraise in April 2023, further solidifying its position as a key player in bridging the critical funding gap for early-stage climate tech startups.
The IFC’s investment, backed by a $1.5 million guarantee from the Korean government’s K-GRID program, brings the total fund size to $54 million. This crucial support will enable Equator Africa to continue investing in high-growth companies developing innovative solutions to address pressing environmental challenges across the continent.
Farid Fezoua, IFC’s Global Director for Disruptive Technologies, emphasized the significance of climate tech innovation in Africa. “These businesses are not only driving economic growth but also contributing to a more sustainable future by reducing emissions and optimizing resource utilization,” Fezoua stated.
Equator Africa focuses on early-stage companies operating in sectors such as renewable energy, sustainable agriculture, and green mobility. The firm has a proven track record of supporting impactful ventures, with a portfolio that includes companies like SunCulture, a Kenyan provider of solar-powered irrigation systems, and Roam, a Kenyan company developing electric motorcycles and buses.
While climate tech funding in Africa has witnessed significant growth in recent years, rising from $340 million in 2019 to $1.1 billion in 2023, the sector still requires substantial investment to meet the continent’s ambitious climate goals. This investment from the IFC represents a crucial step towards mobilizing the necessary capital to support the growth of the African climate tech ecosystem.
