This new capital injection follows an initial close of $40 million in April 2023, aimed at bridging the persistent funding gap for climate tech startups, particularly those in the seed and Series A stages across sub-Saharan Africa.

A key component of the final investment is a $1.5 million guarantee provided by the Korea Green Resilient and Innovative Development (K-GRID) Programme.

Farid Fezoua, IFC’s Global Director for Disruptive Technologies, Services, and Funds, expressed enthusiasm about the potential of climate tech in Africa.

He noted that businesses in this sector are not only contributing to economic growth but also helping to reduce emissions and resource consumption.

“IFC’s investment in Equator Africa reflects our commitment to supporting these businesses to deliver solutions, from renewable energy to electric vehicles,” he said.

Equator Africa focuses on early-stage, tech-enabled companies in sub-Saharan Africa, with a particular interest in sectors such as green energy, agriculture, and mobility.

While its primary focus is on Kenya and Nigeria, the fund has also made investments in companies operating in Côte d’Ivoire, Ghana, Madagascar, Senegal, Sierra Leone, South Africa, and Zambia.

Among the six companies that have already received funding from Equator Africa are SunCulture, a Kenyan company providing solar-powered energy and irrigation systems for farmers, and Roam, a company that designs and manufactures electric motorcycles and buses.

Additionally, Odyssey, a platform specializing in investment and asset management for distributed renewable energy infrastructure, has also benefitted from the fund.