Equator Africa Fund, a venture capital firm dedicated to supporting early-stage climate technology startups in Sub-Saharan Africa, has recently secured a significant investment of $5 million from Proparco, the private sector financing arm of the French Development Agency (AFD). This funding is aimed at providing crucial support to climate-focused startups across the continent, with a particular focus on sectors such as renewable energy, sustainable agriculture, and green mobility.
One of Equator Africa Fund’s notable previous investments includes Kenya’s SunCulture, a company that offers solar-powered energy and irrigation systems for farmers. Another key investment is in Roam, a Kenyan company that specializes in designing and developing electric motorcycles and buses tailored for the African market.
Proparco’s investment in Equator Africa Fund is part of a larger 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 being one of its limited partners. This fund focuses on providing initial and follow-on investments for climate tech startups, including those in the solar energy and electric vehicle sectors.
In February 2024, 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 Fund played a leading role in the $14 million Series A equity round for Roam, highlighting its dedication to advancing green mobility solutions on the continent.
The influx of capital into Africa’s climate tech sector underscores the growing recognition of the continent’s potential to develop innovative solutions to environmental challenges. Investors are increasingly interested in startups that contribute to a low-carbon economy, improve energy access, and promote sustainable agricultural practices.
Proparco’s investment in Equator Africa Fund is expected to stimulate further investments in climate tech startups, providing them with the necessary capital to scale their operations and increase their impact. With the establishment of more funds and the expansion of existing ones focusing on climate tech, African startups in this sector are well-positioned to play a crucial role in the global fight against climate change, while also driving economic growth and job creation across the continent.
