Equator Africa Fund, a venture capital firm championing early-stage climate technology startups across Sub-Saharan Africa, has secured a $5 million injection from Proparco, the private sector financing wing of the French Development Agency (AFD). This substantial investment aims to accelerate the development of startups working in renewable energy, sustainable agriculture, and green mobility.
The fund has a track record of impactful investments, including Kenya’s SunCulture, which supplies solar-powered energy and irrigation systems for farmers, and Roam, a company revolutionising the continent’s transport sector with its electric motorcycles and buses.
Proparco’s backing comes amid a rising tide of financial support for Africa’s climate tech ecosystem. For instance, the E3 Low Carbon Economy Fund for Africa closed its first round at $48.1 million in May 2023, with Proparco as a key contributor. This fund focuses on startups driving the adoption of solar energy, electric vehicles, and other clean technologies.
Additionally, in February 2024, Roam secured $24 million in funding to scale its production and advance electric mobility solutions in Africa. Notably, Equator Africa led Roam’s $14 million Series A equity round, further demonstrating its commitment to fostering green innovation.
The surge in capital flowing into Africa’s climate tech sector highlights the continent’s potential to develop innovative responses to environmental challenges. Startups creating low-carbon solutions, improving energy access, and promoting sustainable farming practices are attracting global investors eager to support the region’s economic growth and climate resilience.
Proparco’s recent contribution is expected to catalyse further investments in climate-focused startups, enabling them to expand operations and amplify their impact. As the sector matures, African entrepreneurs stand poised to play a vital role in combating climate change while generating jobs and boosting the continent’s economy.
