Sub-Saharan Africa is a region disproportionately affected by climate change. The initiative not only supports start-ups offering innovative solutions but also highlights the urgency of investing in sectors critical to Africa's sustainable future.

On December 16, Proparco announced a $5 million investment in the Equator Africa Fund through its FISEA+ facility. This climate-focused investment fund targets early-stage start-ups across sub-Saharan Africa that offer innovative solutions to address critical climate challenges.

“Through this investment, we aim to support ventures addressing the urgent climate challenges in sub-Saharan Africa,” said Fabrice Perez, head of Proparco’s Venture Capital Division. “Equator’s approach resonates with our mission to drive sustainable development and enhance climate resilience in the region.”

Equator Africa Fund specializes in climate technology ventures in energy, agriculture, and mobility—three sectors essential for Africa’s climate transition. With operations in Nairobi and Lagos, Equator combines local expertise with a global perspective to support start-ups that drive environmental and economic sustainability.

Africa receives only around 2 percent of total global climate finance, as highlighted in the UNDP’s 2024 Climate Finance in Africa report. To meet their Nationally Determined Contributions (NDCs), African countries require an estimated $2.8 trillion—or $277 billion annually—between 2020 and 2030, the report adds. Equator’s emphasis on supporting early-stage start-ups plays a pivotal role in bridging this gap, delivering essential funding at a stage where many ventures face significant barriers to accessing capital.

Proparco’s investment aligns with its 2023-2027 strategy to expand economic opportunities and champion climate initiatives. The funding qualifies for 40-60% climate co-benefits and underscores Proparco’s commitment to sustainable growth in Africa.

This investment strengthens Equator’s capacity to bridge the gap in climate financing and reinforces efforts to unlock Africa’s economic potential while addressing the pressing need for climate adaptation. The fund represents a vital step toward building a sustainable and resilient future for the continent.

Hikmatu Bilali