This investment included, Equator’s inaugural fund has now reached  $54 million. The company has already invested in six climate technology startups across the continent.

The International Finance Corporation (IFC) announced on Thursday, October 3, an investment of $5 million in Equator Fund Africa I, a venture capital fund supporting climate technology startups operating in sub-Saharan Africa. The goal is to help the African continent benefit from the sustainable solutions these startups are developing to combat climate change.

“Climate tech is an exciting area of innovation and impact in Africa, where businesses are helping economies grow while reducing emissions and resource use. IFC’s investment in Equator Africa reflects our commitment to supporting those businesses to deliver solutions, from renewable energy to electric vehicles,” said Farid Fezoua, IFC’s Global Director for Disruptive Technologies and Funds.

This investment comes at a time when the continent urgently needs funding to address the impacts of climate change. African start-ups in the climate tech sector are increasingly attracting financing. According to Africa: The Big Deal, these companies raised $340 million in 2019, $344 million in 2020, $613 million in 2021, $959 million in 2022, and $1.1 billion in 2023. In 2024, between January and May alone, climate tech start-ups attracted $325 million, representing 45% of the total funds raised by African start-ups during this period.

Climate change remains a significant challenge for the continent. According to Akinwumi Adesina, President of the African Development Bank (AfDB), “Africa will need $277 billion annually to address climate change, yet it currently only receives $30 billion per year.”

Adoni Conrad Quenum