Africa: Equator Africa Gets $5m From IFC for African Climate Tech Startups

TLDR

• Equator Africa, a VC firm supporting early-stage climate tech startups in sub-Saharan Africa, receives $5 million from IFC for innovation in the African climate sector.
• Initial close of $40 million in April aims to address funding gap for seed and Series A-stage startups in the region.
• Korea Green Resilient and Innovative Development Programme adds $1.5 million guarantee, scaling Equator Africa’s fund to $54 million.

Equator Africa, a venture capital firm focused on supporting early-stage climate tech startups in sub-Saharan Africa, has secured an additional $5 million from the International Financial Corporation (IFC) to further boost innovation in the African climate sector.

This follows an initial close of $40 million in April 2023, aimed at addressing the persistent funding gap for seed and Series A-stage startups in the region.

The Korea Green Resilient and Innovative Development (K-GRID) Program, backed by the Korean government, provided a $1.5 million guarantee, bringing Equator Africa’s total fund size to $54 million.

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Key Takeaways

Equator Africa invests in tech-enabled companies across sub-Saharan Africa, with a focus on green energy, agriculture, and mobility, particularly in Kenya and Nigeria. It has already invested in six companies, including Kenya’s SunCulture, Roam, Odyssey, Apollo Agriculture, Ibisa, and Downforce Technologies, all of which contribute to climate solutions such as solar-powered energy systems, electric vehicles, and climate risk insurance.