The news:
- Equator Africa Fund secures $5 million from Proparco to support climate tech startups in Sub-Saharan Africa.
- Previous investments include Kenya's SunCulture and electric mobility company Roam.
Equator Africa Fund, a venture capital firm dedicated to early-stage climate technology startups in Sub-Saharan Africa, has secured a $5 million investment from Proparco, the private sector financing arm of the French Development Agency (AFD). This funding aims to bolster the growth of climate-focused startups across the continent, particularly in sectors such as renewable energy, sustainable agriculture, and green mobility.
Equator Africa Fund has invested in companies such as Kenya's SunCulture, which provides solar-powered energy and irrigation systems for farmers, and Roam, a Kenyan company that designs and develops electric motorcycles and buses tailored for the African market.
Proparco's investment is part of a broader trend of increasing financial support for climate tech initiatives in Africa. In May 2023, the E3 Low Carbon Economy Fund for Africa achieved its first close at $48.1 million, with Proparco among its limited partners. This fund focuses on providing initial and follow-on investments for climate tech startups, including solar energy providers and electric vehicle companies.
In February 2024, Kenya's Roam secured $24 million in debt and equity funding to expand its production capabilities and promote the adoption of electric vehicles across Africa. Equator Africa led the $14 million Series A equity round for Roam, underscoring its commitment to advancing green mobility solutions on the continent.
The increasing flow of capital into Africa's climate tech sector reflects a growing recognition of the continent's potential to develop innovative solutions to environmental challenges. Investors are particularly interested in startups that contribute to a low-carbon economy, enhance energy access, and promote sustainable agricultural practices.
Proparco's investment in Equator Africa Fund is expected to catalyse further investments in climate tech startups, providing them with the necessary capital to scale their operations and amplify their impact.
As more funds are established and existing ones expand their focus on climate tech, African startups in this sector are poised to play a pivotal role in the global fight against climate change, while also contributing to economic growth and job creation across the continent.
