VC fund Equator gets Ksh.646M from IFC to back climate start-ups

The International Finance Corporation (IFC) has invested $5 million (Ksh.646 million) in Equator Africa, a venture capital (VC) fund focused on the climate sector.

The Kenya-based VC fund is backing early-stage tech start-ups working on green solutions in the energy, agriculture, and mobility sectors across sub-Saharan Africa.

Equator Africa achieved a first close of $40 million in April 2023 (Ksh.5.2 billion at current exchange rates) and IFC’s investment is part of the fund’s final close, taking its size to $54 million (Ksh.7 billion).

IFC’s investment is supported by a $1.5 million guarantee from the Korean government’s Green Resilient and Innovative Development (K-GRID) and Equator’s primary focus will be Kenya and Nigeria.

“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,” Nijhad Jamal, managing partner at Equator, said.

“Together we hope to address a critical financing gap for Seed and Series A-stage climate-tech companies as they scale in the region.”

Equator Africa has already invested in six companies including Kenyan solar-powered energy and irrigation systems provider SunCulture; e-mobility start-up Roam Motors and Apollo Agriculture, which provides input financing and advisory services to smallholder farmers.