Proparco, the private financing arm of the Agence Française de Développement Group (AFD Group), has announced a $5 million (Sh646.95 million) investment in the Equator Africa Fund through its FISEA+ facility. This climate-focused fund is dedicated to supporting early-stage African start-ups offering innovative solutions to tackle climate challenges across sub-Saharan Africa.
Driving Climate Solutions in Energy, Agriculture, and Mobility
Equator Africa Fund is focused on empowering climate tech ventures that operate within three critical sectors: energy, agriculture, and mobility. Proparco’s investment aligns with its mission to drive environmental and economic sustainability while addressing the urgent climate challenges faced by the region.
In a press release, Proparco stated:
“As a first fund for the new management and with teams located in Nairobi and Lagos, Equator has established itself as a dedicated partner combining local insight with global expertise.”
Africa faces growing climate-related threats, including food insecurity and economic instability. With climate change projections estimating that 39 million Africans could face chronic hunger by 2050, Equator’s focus on sustainable energy solutions, innovative agricultural practices, and electric mobility technologies is critical.
Advancing Proparco’s Strategic Pillars
The investment, which qualifies for 40% to 60% climate co-benefits, aligns with Proparco’s 2023-2027 objectives. These include increasing access to economic opportunities and investing in sustainable, climate-resilient initiatives.
Proparco’s Fabrice Perez, Head of the Venture Capital Division, emphasized the importance of the investment:
“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.”
Partnership with Equator Africa Fund
Equator Managing Partner Nijhad Jamal expressed pride in Proparco’s participation in the fund:
“We are extremely proud to have Proparco participate in our fund and 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.”
The collaboration positions Equator as a key player in bridging the climate investment gap in sub-Saharan Africa. By offering capital and expertise, Proparco and Equator aim to scale innovative solutions that enhance climate resilience while unlocking the region’s vast economic potential.
Focus Areas and Vision for Impact
Equator’s efforts are geared toward:
- Energy Solutions: Including renewable energy projects and grid interconnections.
- Sustainable Agriculture: Promoting climate-resilient farming practices.
- Electric Mobility Innovations: Supporting low-emission transportation solutions.
This investment underscores Proparco’s commitment to fostering economic growth through environmentally sustainable initiatives. By partnering with Equator, Proparco hopes to build a brighter, climate-resilient future for Africa while addressing the region’s most pressing environmental and economic challenges.
