Equator Closes $55M Fund for African Climate Tech

Equator, an Africa-focused venture capital firm, has closed a $55 million fund aimed at bringing more private capital to climate tech startups in sub-Saharan Africa.

The fund will target early-stage companies working in sectors such as energy, agriculture, and mobility, with plans to invest in 15 to 18 startups. Equator will provide seed investments ranging from $750,000 to $1 million and Series A funding of up to $2 million.

Nijhad Jamal, Equator's founder and managing partner, emphasized the importance of investing in commercially viable solutions that address real problems in the region.

"We are needed more than ever to invest in technology and scalable ventures tackling fundamental climate challenges," Jamal said.

The fund's backers include development finance institutions such as the International Finance Corporation, British International Investment, and Proparco, as well as private foundations like the Shell Foundation.

Africa accounts for less than 3% of global energy-related CO2 emissions but faces some of the harshest climate impacts. Equator aims to support startups that can reduce carbon emissions and build climate resilience while driving inclusive economic growth across sub-Saharan Africa.

The firm has already invested in several companies, including Roam, an electric motorcycle manufacturer, and SunCulture, a provider of solar-powered irrigation systems.

Equator's fund comes at a crucial time for African startups, as the continent received a small fraction of total global equity funding. The climate tech sector, however, has shown promise, surpassing fintech as Africa's top investment sector in recent months.

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