Farid Fezoua, the Global Director for Disruptive Technologies, Services, and Funds at the International Finance Corporation (IFC), highlights that climate technology is becoming a key area of innovation and impact across Africa. According to Fezoua, businesses in this space are driving economic growth while actively reducing emissions and resource usage
“IFC’s investment in Equator Africa reflects our dedication to supporting businesses that are delivering innovative solutions—from renewable energy to electric vehicles,” Fezoua emphasized.
Equator Africa’s Investment Focus
Equator Africa focuses on early-stage, tech-enabled companies in Sub-Saharan Africa. Their investments span across various sectors, including green energy, agriculture, and mobility. Although the fund primarily targets startups in Kenya and Nigeria, it has also extended its investments to companies in Côte d’Ivoire, Ghana, Madagascar, Senegal, Sierra Leone, South Africa, and Zambia.
Notable Investments
Equator Africa has already backed six promising startups, showcasing its commitment to climate innovation:
- SunCulture: A Kenyan company that provides solar-powered energy and irrigation systems for farmers, addressing both agricultural productivity and sustainable energy.
- Roam: A Kenya-based startup that designs and develops electric motorcycles and buses, contributing to the shift towards cleaner transportation.
- Odyssey: A platform for data and technology solutions used in the investment and management of distributed renewable energy infrastructure.
- Apollo Agriculture: A Nairobi-based tech company that offers input financing and advisory services for smallholder farmers, improving agricultural sustainability.
- Ibisa: A company offering parametric insurance products to help mitigate climate risks.
- Downforce Technologies: A startup that provides affordable and accessible solutions for measuring soil organic carbon, aiding in sustainable land use.
The Growing Climate Tech Sector in Africa
According to data from Africa: The Big Deal, African climate tech startups have raised $325 million in 2024 so far. Over the past five years, the sector has experienced exponential growth, with funding rising from $340 million in 2019 to $1.1 billion by 2023. Despite this significant increase, current funding levels are still insufficient to meet Africa’s climate goals by 2030.
Funding Needs for Africa’s Climate Goals
Experts suggest that annual climate funding in Africa must increase from the current $30 billion to nearly $300 billion to meet both mitigation and adaptation needs.
Recent Developments in Climate Tech Funding
In March 2024, Satgana, a venture capital firm, launched the first fund aimed at supporting early-stage climate tech startups in Africa. Additionally, the African Development Bank Group (AfDB) announced a $10 million junior equity investment in the KawiSafi II Fund to further support the growth of climate tech startups across the continent.
Conclusion
With the increasing recognition of climate technology as a vital driver for sustainable development, Equator Africa’s recent $5 million funding serves as a critical boost to the sector. While funding has grown, it remains essential to scale investments to meet Africa’s ambitious climate targets and ensure the continent is well-prepared for future environmental challenges.
Source: Techpoint Africa