- Catalyst Fund has increased commitments for its African climate technology fund to $30 million, moving closer to its $40 million fundraising target.
- The venture capital firm plans to expand its portfolio from 28 to about 40 startups across Africa.
- New investors include the International Finance Corporation (IFC), Shell Foundation, Trafigura Foundation, Speedinvest, and We-Fi.
Pan-African venture capital firm Catalyst Fund has raised its total commitments to $30 million after closing a second fundraising round, bringing it closer to its $40 million target for investing in African startups developing climate adaptation solutions.
The fund announced the milestone on Thursday, saying the new capital will allow it to expand its portfolio from 28 startups operating across 10 African markets to around 40 companies.
“Climate adaptation is one of the defining investment themes of the next decade, especially in Africa, where the need is immediate, and the entrepreneurial talent is extraordinary,” said Maelis Carraro, Founder and Managing Partner of Catalyst Fund, in a statement.
New investors join the fund
The latest fundraising round attracted several new institutional investors, including the International Finance Corporation (IFC), the World Bank Group’s private-sector arm, the Shell Foundation, the Trafigura Foundation, venture capital firm Speedinvest, and We-Fi, a global initiative that supports women entrepreneurs.
They join existing backers FSD Africa and the Cisco Foundation. “Across Africa, entrepreneurs supported through Catalyst Fund are strengthening livelihoods, expanding access to essential services, and creating quality jobs in underserved communities,” said Farid Fezoua, IFC’s Global Director for Disruptive Technologies, Services, and Funds.
Focus on climate adaptation
Catalyst Fund invests exclusively through equity financing, typically providing about $200,000 in seed-stage funding. It has also completed nine follow-on investments in its strongest-performing portfolio companies.
Its current investments include MazaoHub in Tanzania, an agricultural technology company; Bekia in Egypt, which specializes in waste recycling; and Keep It Cool in Kenya, which operates solar-powered cold chain infrastructure.
Most of the fund’s investments are concentrated in Nigeria, Kenya, Egypt, and Tanzania, according to the company. Catalyst Fund first launched the fund in the third quarter of 2023, raising $9 million in its initial close. Funding for climate technology startups in Africa fell to $754 million in 2024, according to TechCabal Insights, before recovering to $1.1 billion by November 2025. Catalyst Fund said it aims to complete the fund’s final close before the end of the year.
Fiacre E. Kakpo
