Equator Africa, a venture capital firm dedicated to climate innovation, has received an additional $5 million investment from the International Financial Corporation (IFC). This funding will bolster the firm’s mission to support early-stage startups driving sustainability and innovation across sub-Saharan Africa.The new investment builds on Equator Africa’s initial $40 million close in April 2023, aimed at addressing the critical funding gap for climate tech startups, particularly those at the seed and Series A stages. With the latest contributions, including a $1.5 million guarantee from the Korea Green Resilient and Innovative Development (K-GRID) Programme, the fund’s total size now stands at $54 million.
Climate Innovation for Economic Growth
Farid Fezoua, IFC’s Global Director for Disruptive Technologies, Services, and Funds, emphasized the transformative potential of climate technology in Africa.“Climate technology offers an unparalleled opportunity for economic growth while addressing critical environmental challenges,” Fezoua said. “Our investment in Equator Africa supports innovative solutions across renewable energy, sustainable agriculture, and green mobility.”
Investment Focus and Key Projects
Equator Africa focuses on early-stage, tech-enabled businesses in sub-Saharan Africa, with a primary emphasis on Kenya and Nigeria. The fund has also backed startups in Côte d’Ivoire, Ghana, Senegal, South Africa, and Zambia.
Key investments include:
SunCulture: A Kenyan company offering solar-powered irrigation systems to farmers.
Roam: A manufacturer of electric motorcycles and buses in Kenya.
Odyssey: A technology platform that facilitates investments in distributed renewable energy infrastructure.
Apollo Agriculture: A Nairobi-based company providing input financing and advisory services to smallholder farmers.
Ibisa: A climate-focused parametric insurance provider.
Downforce Technologies: Specializing in soil organic carbon measurement solutions.
The Growing Climate Tech Ecosystem
Africa’s climate tech sector has seen a remarkable surge in funding. According to recent data, startups in this space have raised $325 million in 2024 alone. Over the past five years, investments in climate innovation have grown exponentially, from $340 million in 2019 to $1.1 billion in 2023.Despite this growth, funding remains far below what is needed to meet Africa’s climate goals. Experts estimate that annual climate funding must rise from $30 billion to $300 billion by 2030 to adequately address mitigation and adaptation needs.
A Collaborative Future
Equator Africa’s work complements broader efforts to scale climate tech solutions on the continent. In 2024, VC firm Satgana launched a fund focused on early-stage climate startups, while the African Development Bank Group (AfDB) pledged $10 million to the KawiSafi II Fund.With these initiatives, Africa’s climate tech ecosystem is poised to play a pivotal role in advancing global sustainability goals while creating economic opportunities across the region.
