Proparco has announced a significant $5 million investment in the Equator Africa Fund through its FISEA+ facility, aimed at accelerating climate-focused innovation in sub-Saharan Africa. This funding is specifically targeted at early-stage start-ups operating in the energy, agriculture, and mobility sectors, which are critical to addressing the continent’s escalating climate challenges.
The Equator Africa Fund specializes in supporting climate technology ventures that drive both environmental sustainability and economic growth. With teams based in Nairobi and Lagos, the fund leverages local knowledge alongside global expertise to foster solutions that combat Africa’s vulnerability to climate change and its growing population pressures.
The urgency of this investment is underscored by alarming climate projections that estimate 39 million Africans may face chronic hunger by 2050 due to climate-related impacts. Equator’s focus on renewable energy solutions, sustainable agricultural practices, and innovations in electric mobility seeks to mitigate these effects while creating long-term economic stability.
Proparco’s investment is part of its 2023-2027 strategic pillars of advancing climate initiatives and expanding economic opportunities. The initiative qualifies for 40% to 60% climate co-benefits, reinforcing Proparco’s commitment to sustainable development.
Fabrice Perez, Head of Proparco’s Venture Capital Division, emphasized the significance of the collaboration, stating:
Through this investment, we aim to support ventures addressing the urgent climate challenges in sub-Saharan Africa. Equator’s approach echoes our 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.
Equator’s Managing Partner, Nijhad Jamal, welcomed Proparco’s participation, highlighting the role of active funding and mentorship for emerging ventures:
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. Proparco is uniquely positioned to provide expertise, networks, and capital directly to our portfolio companies as they scale across the region.
This investment will enable Equator to bridge the climate funding gap by empowering innovative start-ups with the resources needed to enhance Africa’s climate resilience. By supporting these ventures, Proparco and Equator are making a significant impact on the future of the continent, fostering sustainable development and economic growth in the face of climate change.
