Equator Africa Secures $5M from IFC for African Climate Innovation

Equator's Managing Partner, Nijhad Jamal and IFC's Global Director Health and Education, International Finance Corporation/World Bank Group, Farid Fezoua

Equator Africa, a venture capital firm, has secured an additional $5 million investment from the International Finance Corporation (IFC) to boost innovation in Africa’s climate sector. This funding follows an earlier $40 million raised in April 2023 aimed at addressing the persistent funding gap for climate tech startups in sub-Saharan Africa, particularly those at the seed and Series A stages.

Part of the latest investment includes a $1.5 million guarantee from the Korea Green Resilient and Innovative Development (K-GRID) Programme, a $30 million initiative by the Korean government supporting IFC projects focused on emissions reduction and climate mitigation technologies. This brings the total fund size to $54 million.

Farid Fezoua, IFC’s Global Director for Disruptive Technologies, highlighted Africa's climate technology sector as a major area of innovation, driving economic growth while addressing environmental challenges. "Our investment in Equator Africa reflects our commitment to supporting solutions like renewable energy and electric vehicles," Fezoua said.

Equator Africa focuses on early-stage, tech-driven companies in sub-Saharan Africa, with investments in sectors like green energy, agriculture, and mobility. While mainly targeting Kenya and Nigeria, the fund also invests in businesses in Côte d'Ivoire, Ghana, Madagascar, Senegal, Sierra Leone, South Africa, and Zambia.

Source: Abdullah Ajibade / TechPoint Africa