On Monday, December 16, Equator Africa Fund, a company that helps start-ups focused on solving climate problems in Sub-Saharan Africa, announced it received a $5 million investment from Proparco. Proparco is part of the French Development Agency, which helps fund projects in the private sector. This money will help climate-related start-ups grow, especially in areas like renewable energy, farming, and green transportation.
Equator Africa Fund has already invested in amazing companies like SunCulture from Kenya, which helps farmers by providing solar-powered energy and irrigation systems. They’ve also helped Roam, a company from Kenya that creates electric motorcycles and buses that are built for Africa.
The investment from Proparco is part of a larger trend of more money being invested in climate projects across Africa. Back in May 2023, the E3 Low Carbon Economy Fund for Africa raised $48.1 million to support businesses that help the environment, including solar energy companies and electric car businesses. Proparco is also a partner in that fund.
On Friday, February 2, 2024, Roam also raised $24 million to make more electric vehicles and help people across Africa use them. Equator Africa Fund led a $14 million investment into Roam, showing their commitment to helping clean transportation become more common in Africa.
The growing investments into Africa’s climate tech shows that people are recognizing how important it is for African businesses to create new, eco-friendly solutions. Investors are looking for companies that can help build a cleaner world, provide more energy, and support better farming methods.
Proparco’s investment is expected to help Equator Africa Fund support even more start-ups in the climate tech space. With the right funding, these companies can grow and make a bigger impact on the planet.
As more people invest in this kind of work, it’s clear that Africa’s start-ups will play an important role in fighting climate change and helping create jobs and new opportunities across the continent.
