The International Finance Corporation (IFC) has committed $5 million to Equator Africa Fund I, marking its first venture capital investment dedicated to climate innovation in Africa. This move aligns with IFC’s broader goal of accelerating climate-resilient development across the continent, which is highly vulnerable to the impacts of climate change yet holds significant potential for green innovation.
Equator Africa Fund I focuses on early-stage, tech-enabled companies tackling climate challenges in key sectors like energy, agriculture, and mobility. With its recent $5 million investment from IFC, the fund’s total capital now stands at $54 million. The initial close of $40 million in April 2023 had already attracted significant interest, and IFC’s participation will strengthen the fund’s ability to provide critical financing where it’s needed most.
This investment also benefits from a $1.5 million guarantee from Korea’s Green Resilient and Innovative Development (K-GRID) Program, a $30 million initiative designed to support climate-friendly projects that reduce greenhouse gas emissions while fostering technological advancement. IFC’s backing will enable Equator to invest more aggressively in climate-tech companies across the region, driving long-term sustainability and economic growth.
Nijhad Jamal, managing partner of Equator, praised IFC’s contribution, stating, “We are thrilled to have IFC onboard as we focus on supporting ventures that are driving equitable climate transitions in Africa. IFC’s investment not only helps us close the financing gap but also underscores the critical role of climate tech in shaping Africa’s future.”
Equator’s portfolio already includes six promising companies spread across the continent. Among them are SunCulture, which develops solar-powered irrigation systems for African farmers, and Roam, a company designing electric motorbikes and buses to reduce emissions in Africa’s growing urban areas. These ventures are examples of how innovative tech solutions can address some of Africa’s most pressing climate-related issues while also promoting job creation and sustainable development.
Farid Fezoua, IFC’s global director for disruptive technologies, highlighted the importance of supporting climate innovation in Africa. “The continent is at a pivotal moment where businesses can drive growth while helping reduce emissions. Our investment in Equator Africa shows our commitment to fostering solutions that will have a long-lasting positive impact on both African economies and the environment,” Fezoua remarked.
Equator Africa’s geographic focus includes Kenya and Nigeria but extends to several other countries such as Côte d’Ivoire, Ghana, Madagascar, Senegal, and Zambia. By targeting key regions and sectors, the fund seeks to address the financing gaps that often hinder climate-focused startups from scaling up in Africa.
In addition to its financial backing, IFC will offer support to the Equator around environmental, social governance, and gender inclusivity—areas that are increasingly becoming critical to sustainable business growth in Africa.
Other notable investors in Equator Africa Fund I include British International Investment (BII), Global Energy Alliance for People and Planet (GEAPP), and Shell Foundation, further demonstrating global confidence in Africa’s growing climate tech sector.
With Africa’s potential to become a key player in global climate action, Equator Africa Fund I is poised to play a significant role in supporting the continent’s transition to a more sustainable, tech-driven future. IFC’s investment is not just a vote of confidence in Equator’s strategy but a crucial step towards addressing Africa’s climate financing challenges, positioning the region for long-term economic resilience.
