Equator Africa, a venture capital firm, has secured an additional $5 million from the International Finance Corporation (IFC) to support businesses in Africa’s climate sector. This follows an earlier $40 million raised in April 2023, bringing the total to $54 million. The Korea Green Resilient and Innovative Development (K-GRID) program also provided a $1.5 million guarantee. According to Equator Africa’s press release, the fund aims to close the funding gap for climate tech startups, especially those in sub-Saharan Africa.
Equator Africa invests in early-stage companies that focus on green energy, agriculture, and mobility. While it mainly targets startups in Kenya and Nigeria, it has also backed companies in other countries like South Africa, Ghana, and Senegal. The goal is to help businesses grow while providing solutions that reduce emissions and make better use of resources, as the company noted in its official statement.
Founded by Nijhad Jamal, Equator Africa aims to support climate innovation across Africa. The firm helps startups overcome financial hurdles, especially those in their early stages. Some of the companies in its portfolio include SunCulture, which provides solar-powered irrigation for farmers, and Roam, a Kenyan company that designs electric motorcycles and buses. These investments are part of Equator Africa’s mission to create a sustainable future for Africa, as outlined in the IFC’s press release.
Farid Fezoua, the IFC’s Global Director for Disruptive Technologies, highlighted that climate technology is a key area of growth in Africa. Businesses in this sector are not only helping the economy but also addressing environmental issues. IFC’s investment in Equator Africa shows its commitment to supporting companies that provide renewable energy and electric vehicle solutions, according to their official announcement.
Equator Africa’s strategy is to invest in businesses that can scale quickly across Africa. With the backing of the IFC and other investors like British International Investment (BII) and Shell Foundation, the fund is in a strong position to help startups. These partnerships will drive climate innovation and support companies that address environmental challenges while boosting economic growth, according to Equator Africa’s statement.
The continued growth in Africa’s climate tech sector highlights a commitment to building sustainable businesses. Equator Africa, with its early-stage investments and strong support from institutional investors, is set to play a major role in improving climate resilience and driving economic development across the continent.
