BFA Global and FSD Africa have unveiled a new venture launcher, TECA (Triggering Exponential Climate Action) aimed at supporting entrepreneurs in the fintech for climate resilience space.
The launcher will create fintech startups with solutions that enable climate resilience in the most vulnerable communities around the world, with an initial focus on Africa. FSD Africa will invest $3.3m in the programme over the next 4 years.
FSD Africa’s support will also accelerate the ecosystem around the ventures by engaging with multiple stakeholders to unlock capital, attract talent and create proof points to spur more innovation for climate resilience.
“At FSD Africa, we believe that a strong, fair and accessible financial system is crucial to a sustainable future for Africa’s people and its environment. In particular, we believe that finance can play a major role in tackling climate vulnerability and that by harnessing the power of fintech innovation we can help address market barriers to building out much-needed climate resilience solutions. ” Juliet Munro, Director, Digital Economy at FSD Africa.
She further noted that the challenge for Africa is that this innovation is stifled by a weak ecosystem, reflected in low early-stage investment.
”Our partnership with BFA Global on TECA aims to address this by originating, investing in and growing a pipeline of climate resilience ventures, while helping to influence and expand the pool of investment into this space.” Juliet Munro.
According to the IPCC, Sixth Assessment Report released earlier this year, up to 3.6 billion people live in contexts that are highly vulnerable to climate change, with some of the largest impacts observed in areas and communities across Africa. However, solutions require significant further development and are largely not yet accessible, affordable, or available to the populations most at risk.
Read also; First Climate Adaptation Credit Facility for Agriculture launches in Kenya.
