Africa, the world’s second-largest and second-most populous continent, grapples with numerous challenges. Despite its abundance of natural resources, a sizable and predominantly young potential workforce, and a plethora of rich cultures, it remains the poorest continent per capita. Strengthening economies is crucial for improving overall living standards, yet environmental concerns also weigh heavily on its people. Many are already experiencing the impacts of rising temperatures due to climate change, while safeguarding remaining habitats from pollution, deforestation, land degradation, and biodiversity loss are paramount.
Entrepreneurial spirit runs high among the population, as everyone aspires to build a better life. However, despite increasing international investment and capital flowing into startups, particularly in climate-tech, Africa has been largely neglected. Statistics reveal that while the US, Canada, Europe, and China received 93% of investment inflow in 2020, only 0.2% was directed towards African businesses. Challenges such as limited connections in both public and private sectors, inadequate regulatory frameworks and infrastructure, low levels of accessible education, and high production costs pose significant hurdles for African startups.
Nevertheless, there are international investors who altruistically seek to assist African startups, favoring them over those from more established economies. While this may not seem optimal at first glance, they recognize the advantages of fostering close financial relationships with a continent poised for economic success, with climate-tech as a primary driver.
The Catalyst Fund is one such investor, reaffirming its commitment to advancing climate adaptation and resilience in Africa with a $1.8 million investment in nine early-stage climate tech startups across the continent. This marks the second round of investments by the Catalyst Fund specifically targeting startups addressing climate change challenges. The chosen startups operate in eight different markets: Kenya, Egypt, Morocco, Nigeria, Senegal, South Africa, Tanzania, and Uganda.
Source: Techfundingnews