Proparco Backs Equator Fund Africa In Its Fight Against Climate Change
The Equator Africa Fund has become a beneficiary of Proparco’s Investment in early-stage African startups that create and deliver innovative solutions to tackle climate issues in Sub-Saharan Africa. Proparco, the private sector arm of the French Development Agency, announced the $5 million investment in the climate-focused investment vehicle through its FISEA+ facility.
Equator Africa Fund, in its bid to tackle climate related issues through investment in climate-focused startups, targets three key sectors that are crucial in the continent’s climate transition which are energy, agriculture, and mobility. The fund aims to combine environmental sustainability with economic growth as the regions growing population is Increasingly susceptible to climate problems.
The Equator Africa Fund has its headquarters in Nairobi and Lagos, using the local expertise in conjunction with global best practices to support startups with a potential to bring transformation. This is the fund’s first investment vehicle under its new management, marking a milestone in its commitment to addressing Africa’s climate and economic challenges.
Proparco’s investment aligns with its 2023–2027 objectives, which emphasize enhancing access to economic opportunities and advancing climate initiatives. The investment qualifies for 40–60% climate co-benefits under Proparco’s criteria, highlighting its dual focus on economic development and environmental sustainability
Fabrice Perez, head of Proparco’s Venture Capital Division, emphasized the significance of the partnership, saying: “Through this investment, we aim to support ventures addressing the urgent climate challenges in sub-Saharan Africa. Equator’s approach echoes our own commitment to driving sustainable development and climate resilience in the region. We believe these ventures hold promise for a sustainable future, enhancing both Africa’s economic strength and environmental resilience.”
Nijhad Jamal, Managing Partner at Equator, welcomed Proparco’s involvement: “We are extremely proud to have Proparco participate in our fund and to join Equator’s mission to provide much-needed capital and active hands-on support to early-stage climate-tech ventures at a critical juncture in their start-up journey. In addition to partnering with Equator, Proparco is uniquely positioned to provide expertise, networks, and capital directly to our portfolio companies as they scale across the region.”
Sub-Saharan Africa is one of the regions most vulnerable to climate change. With climate change, it suffers adverse impacts on food security, livelihoods, and economic stability. Projections suggest that climate-related challenges could push an additional 39 million Africans into chronic hunger by 2050. Against this backdrop, Equator seeks to foster climate resilience by investing in technologies such as renewable energy and grid interconnections, sustainable agricultural practices, and electric mobility innovations.
The investment will enable Equator to bolster startups focused on innovative climate solutions, addressing Africa’s climate financing gap while unlocking economic potential.
