Equator, a climate-tech venture capital firm, has closed a $55 million fund to support early-stage startups tackling Africa’s pressing environmental and economic challenges. The investment will target key sectors, including energy, agriculture, and mobility, as the continent seeks innovative solutions to mitigate climate change and drive sustainable development.
Africa remains one of the most vulnerable regions to climate change, despite contributing less than three percent of global energy-related CO₂ emissions. Yet, financing for climate solutions remains inadequate. The Climate Policy Initiative reported a 48 percent increase in climate finance flows to Africa, reaching $43.7 billion in 2021 and 2022. However, this is still far from the estimated $3 trillion needed by 2030 to meet climate goals. Equator’s latest fund is designed to help bridge this gap by injecting much-needed capital into early-stage ventures working to combat climate change and promote resilience.
The fund is backed by British International Investment, Proparco, the Global Energy Alliance for People and Planet, Shell Foundation, and the International Finance Corporation. Equator is already putting this capital to work, with investments in companies such as SunCulture, a Kenyan startup providing IoT-enabled solar irrigation systems for smallholder farmers, and Roam, a company developing electric motorbikes and buses to support Africa’s transition to sustainable mobility.
Unlike traditional investors, Equator takes a hands-on approach by offering operational support, mentorship, and expertise in addition to funding. With a team of technologists, operators, and investors, the firm actively collaborates with its portfolio companies to accelerate their growth and impact. The International Finance Corporation, which has invested $5 million in Equator, underscores the fund’s importance in driving Africa’s climate tech ecosystem forward.
As climate change intensifies, Africa faces a critical juncture. Initiatives like Equator’s fund provide a vital boost to startups at the forefront of innovation, ensuring that the continent is not only adapting to environmental challenges but also positioning itself as a leader in sustainable solutions. Through strategic investments and partnerships, Equator is paving the way for a greener, more resilient future for Africa.
