IFC Invests $5 Million in Equator Africa Fund I to Support Climate Tech Innovation in Sub-Saharan Africa
The International Finance Corporation (IFC) announced an investment in Equator Africa Fund I, marking IFC’s first investment in a venture capital fund focused on climate tech innovation in sub-Saharan Africa.
Following its initial close of $40 million in April 2023, the $5 million investment brings the total size of the fund to $54 million,
Equator Africa Fund I’s goal is to assist startups that use technology to address climate change in industries including energy, agriculture, and transportation.
The fund has made investments in businesses in Côte d'Ivoire, Ghana, Madagascar, Senegal, Sierra Leone, South Africa, and Zambia, although its primary concentration is on Kenya and Nigeria.
The Korea Green Resilient and Innovative Development (K-GRID) Program, a $30 million endeavour from the Korean government, has guaranteed $1.5 million of the $5 million investment made by the IFC.
This helps initiatives that lower greenhouse gas emissions and advance technology for mitigating climate change.
Nijhad Jamal, Equator's Managing Partner, said, “We are thrilled to have IFC participate in our fund and support Equator’s mandate to invest in technology-enabled, early-stage ventures that are accelerating an equitable climate transition in sub-Saharan Africa.”
He added, “Together we hope to address a critical financing gap for Seed and Series A-stage climate-tech companies as they scale in the region.”
The fund has invested in six companies, including SunCulture, Roam, Odyssey, Apollo Agriculture, Ibisa, and Downforce Technologies.
Other noteworthy, limited partners in the fund include British International Investment (BII), the Global Energy Alliance for People and Planet (GEAPP), Shell Foundation, DOEN Participaties, and Proparco.
IFC’s investment in Equator Africa is part of its new $225 million Africa, Middle East, Central Asia, and Pakistan Venture Capital Platform.
This platform aims to strengthen venture capital ecosystems by investing in early-stage businesses that tackle development concerns in various industries, including e-commerce, agriculture, health care, education, and the climate.
