The news
- Equator closes a $55 million fund to support early-stage climate tech startups in Africa.
- Investments will target sectors like energy, agriculture, and mobility to promote sustainable development.
- Portfolio companies include SunCulture, Roam, and Apollo Agriculture, addressing critical environmental and economic challenges.
Equator, a climate-tech venture capital firm, has successfully closed a $55 million fund aimed at supporting early-stage climate tech startups in Africa. This investment is poised to bolster the continent's sustainable development by addressing critical funding gaps and promoting innovative solutions in the climate sector.
Limited partners for this fund include British International Investment (BII), Proparco, the Global Energy Alliance for People and Planet, Shell Foundation, and the International Finance Corporation (IFC).
Historically, Africa has faced challenges in securing adequate financing for climate initiatives. Despite contributing less than 3% of global energy-related CO₂ emissions, the continent remains highly vulnerable to the adverse effects of climate change.
The Climate Policy Initiative reported a 48% increase in climate finance flows to Africa, reaching $43.7 billion in 2021/22. However, this still falls short of the estimated $3 trillion needed by 2030 to meet climate commitments.
Equator's $55 million fund aims to bridge part of this gap by providing much-needed capital to early-stage ventures in the energy, agriculture, and mobility sectors.
Equator has already begun deploying capital to innovative startups across the continent. Notable investments include SunCulture, a Kenyan company offering affordable IoT-enabled solar irrigation equipment to smallholder farmers; and Roam, a company specialising in the design and development of electric motorbikes and buses.
These investments align with Equator's strategy to support ventures that address both environmental and economic challenges in sub-Saharan Africa.
Equator distinguishes itself through a hands-on, collaborative approach. The firm comprises technologists, operators, and investors who provide active support beyond financial backing.
Its commitment to an equitable climate transition is further evidenced by partnerships with organisations like the IFC, which invested $5 million in Equator to bolster climate tech innovation in Africa. Such collaborations enhance Equator's capacity to support startups that are pivotal to the continent's sustainable future.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
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