This marks a strategic expansion of SMBC’s global impact investing initiatives.

Established in 2014, Novastar Ventures is among Africa’s earliest and largest venture capital firms.

It currently oversees assets exceeding USD 200 million across its operations, which span the UK, Kenya, and Nigeria.

The newly launched Africa People + Planet Fund III is geared toward early-stage startups across East and West Africa.

It focuses on sectors such as fintech, mobility solutions, green technology, agriculture, renewable energy, logistics, cold-chain infrastructure, affordable housing, retail, and consumer goods.

This fund builds on Novastar’s impact investment mission, supporting ventures that foster essential social infrastructure, combat carbon emissions, improve soil health, and bolster biodiversity.

SMBC’s equity injection comes through its Social Value Creation Investment Fund, created under SMFG’s current Mid‑Term Management Plan.

The fund’s budget for fiscal year 2025 stands at ¥50 billion (approximately USD 340 million), up from ¥40 billion (USD 270 million) the previous year.

By backing Novastar’s Fund III, SMBC aims to nurture high‑growth African startups that are driving both regional economic development and solutions to pressing environmental challenges.

SMBC also underscores the importance of facilitating partnerships between local innovators and global businesses.

According to UN forecasts, Africa is projected to account for 25% of the world’s population by 2050, with rapid urbanization placing strain on critical sectors like food production, logistics, financial services, and legal frameworks.

Startups—especially in fintech, mobility, and green tech—are stepping in to fill these infrastructural gaps through innovation and risk‑driven growth.

Moreover, as Japanese and broader Asian companies increase their presence on the continent, collaboration with early‑stage African businesses is becoming a meaningful channel for shared economic progress and a gateway for new global value chains.

Novastar’s third fund isn’t just attracting SMBC—other investors include key European development finance institutions such as Swedfund, Norfund, Proparco, and British International Investment, as well as Japanese conglomerate Mitsui O.S.K. Lines (MOL).

The fund’s investments are expected to deliver substantial environmental and social returns, such as reducing greenhouse gas emissions, improving rural livelihoods, and strengthening climate resilience in vulnerable communities.