Venture capital firm Equator has successfully closed a $55 million fund aimed at supporting climate technology startups in sub-Saharan Africa. The fund will provide crucial financing for early-stage companies tackling environmental challenges in sectors such as agriculture and energy.
Based in Kenya and the UK, Equator is backed by major financial institutions, including the World Bank’s International Finance Corporation (IFC), British International Investment (BII), and France’s Proparco. The firm plans to invest in about 15 startups, according to its founder and managing partner, Nijhad Jamal.
Equator has already funded six companies, including Kenyan electric motorcycle manufacturer Roam and solar-powered irrigation firm SunCulture. These investments were made using capital raised in previous funding rounds. Notably, IFC’s $5 million commitment in October marked its first investment in a climate-focused venture capital fund.
Climate Change Remains a Huge Problem in Africa
Africa faces severe climate challenges despite contributing minimally to global greenhouse gas emissions. According to the World Meteorological Organization, sub-Saharan Africa requires $30-50 billion annually for climate adaptation over the next decade. This funding gap has driven increased investment from institutions like IFC and BII, aiming to support sustainable development across the continent.
Jamal emphasized that Equator’s approach is not just about funding climate tech for its own sake but about backing innovative solutions that address real, large-scale problems. The firm prioritizes commercially viable startups that can generate tangible benefits for communities while attracting further investment into the sector.
Equator will provide early-stage funding ranging from $500,000 to $5 million, helping startups grow and become attractive to larger investors. With a 10-year investment horizon, the firm aims to balance patience with the need to generate returns for its investors, ensuring the long-term sustainability of climate-focused venture capital in Africa.