Venture capital firm—Equator—has closed a US$55 million fund aimed at financing early-stage climate tech startups in Africa, a sector that has long struggled to attract private capital.
- The Investment was made by the British International Investment (BII), the International Finance Corporation (IFC), Proparco, the Global Energy Alliance for People and Planet (GEAPP), Shell Foundation, and DOEN Participaties.
- Equator VC was founded in 2023 and has backed several high-growth companies, including Odyssey Energy Solutions, Roam Electric, and SunCulture.
- Its most recent investments include Downforce Technologies, a platform that measures soil organic carbon to optimize land use—and Ibisa, a provider of parametric insurance solutions for climate resilience.
“We are needed more than ever to invest in technology and scalable ventures tackling fundamental climate challenges. These investments will help reduce dependence on aid and instead bring more global private capital into the region,” said Nijhad Jamal, a managing partner at Equator.
While Africa contributes less than 3% of global carbon emissions, the continent faces disproportionate climate risks. Early-stage start-ups tackling these challenges have struggled to secure financing, as Africa accounted for just 0.6% of global venture funding in 2024—its lowest level since 2020. Less than a third of that capital went to climate-related sectors, with only 10% reaching early-stage ventures.
The firm has teams in Nairobi, Lagos, London, and Colorado. The funding comes at a time when investors are reassessing risk appetite in African markets, with venture funding dipping in 2024 amid global economic uncertainties. However, climate-tech remains a priority for development financiers, given the sector’s potential to drive sustainable economic growth.
While climate-focused startups in developed markets benefit from government subsidies and robust investor interest, their African counterparts often rely on development finance institutions (DFIs), foundations, and endowments.
For IFC, the investment marks its first venture capital commitment solely focused on climate innovation in Africa. Early investors such as BII and GEAPP have already provided follow-on capital and technical assistance to portfolio companies.
