Proparco Backs Equator Africa Fund with $5M Climate-Focused Investment Fund

Nijhad Jamal, Equator Managing Partner

Proparco is proud to announce a USD 5 million investment in the Equator Africa Fund, through the FISEA+ facility. This climate-focused investment fund is committed to supporting early-stage African start-ups with innovative solutions to address climate challenges across sub-Saharan Africa.

Equator invests in climate tech ventures that focus on three sectors crucial to Africa’s climate transition: energy, agriculture, and mobility. By supporting innovative solutions to ensure both environmental and economic sustainability, Equator aims to tackle the significant challenges faced by sub-Saharan Africa, which has fast-growing populations and high vulnerability to climate change. As a first fund for the new management and with teams located in Nairobi & Lagos, Equator has established itself as a dedicated partner combining local insight with global expertise.

The African continent faces pressing climate challenges that threaten food security and economic stability, with projections indicating that 39 million Africans could face chronic hunger by 2050 due to climate-related impacts. In this context, Equator focuses on supporting start-ups engaged in energy solutions like grid interconnections and renewable energy, sustainable agricultural practices, and innovations in electric mobility.

This investment qualifies for 40% to 60% climate co-benefits, and aligns with Proparco’s strategic pillars of increasing access to economic opportunities and investing in climate initiatives, as affirmed in its 2023 to 2027 objectives. Proparco’s investment via FISEA+ reflects its commitment to foster economic growth through environmentally sustainable initiatives.

Fabrice Perez, head of the Venture Capital Division at Proparco, expressed his enthusiasm concerning this funding: “Through this investment, we aim to support ventures addressing the urgent climate challenges in sub-Saharan Africa. Equator’s approach echoes our own commitment to driving sustainable development and climate resilience in the region. We believe these ventures hold promise for a sustainable future, enhancing both Africa’s economic strength and environmental resilience.”

Nijhad Jamal, Managing Partner at Equator, said, “We are extremely proud to have Proparco participate in our fund and to join Equator’s mission to provide much-needed capital and active hands-on support to early-stage climate-tech ventures at a critical juncture in their start-up journey. In addition to partnering with Equator, Proparco is uniquely positioned to provide expertise, networks and capital directly to our portfolio companies as they scale across the region.”

This new investment will support climate-driven solutions in energy, agriculture, and mobility, allowing Equator to participate in efforts to bridge the gap in climate investment, by providing the resources needed to address Africa’s climate resilience while unlocking its vast economic potential.

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