Equator Africa Fund I secures IFC investment
IFC’s investment of $5 million comes as part of the fund’s final close, taking its size to $54 million.
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The International Finance Corporation (IFC) has announced an investment in the Equator Africa Fund I.
Equator Africa is backing early-stage, tech-enabled companies in sub-Saharan Africa, including those working on green solutions in the energy, agriculture, and mobility sectors. The fund, which achieved a first close of $40 million in April 2023, is helping bridge the persistent financing gaps that exist in Africa for climate tech innovation.
IFC’s investment of $5 million comes as part of the fund’s final close, taking its size to $54 million. IFC's investment is supported by a $1.5 million guarantee from the Korea Green Resilient and Innovative Development (K-GRID) Program, a $30 million initiative by the Government of Korea to support IFC projects that help reduce or avoid greenhouse gas emissions and facilitate the development and commercialisation of technologies to improve climate mitigation.
Nijhad Jamal, managing partner at Equator, said, “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. Together we hope to address a critical financing gap for Seed and Series A-stage climate-tech companies as they scale in the region.”
Farid Fezoua, IFC’s global director for disruptive technologies, services, and funds, said, “Climate tech is an exciting area of innovation and impact in Africa, where businesses are helping economies grow while reducing emissions and resource use. IFC’s investment in Equator Africa reflects our commitment to supporting those businesses to deliver solutions, from renewable energy to electric vehicles.”
The fund has already invested in six companies including SunCulture, which provides solar powered energy and irrigation systems to farmers; Roam, which designs and develops EV motorbikes and electric buses; Odyssey, a data and tech platform for investment and asset management for distributed renewable energy infrastructure; Apollo Agriculture, which provides input financing and advisory services to smallholder farmers; Ibisa, which provides parametric insurance products for climate risks; and Downforce Technologies, which makes soil organic carbon measurement technology accessible and affordable.
Other notable limited partners in the fund include British International Investment (BII), the Global Energy Alliance for People and Planet (GEAPP), Shell Foundation, DOEN Participaties, and Proparco.
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