Proparco has announced a USD 5 million investment in the Equator Africa Fund, through the FISEA+ facility. This climate-focused investment fund is committed to supporting early-stage African start-ups with innovative solutions to address climate challenges across sub-Saharan Africa.

Equator invests in climate tech ventures that focus on three sectors crucial to Africa’s climate transition: energy, agriculture, and mobility. By supporting innovative solutions to ensure both environmental and economic sustainability, Equator aims to tackle the significant challenges faced by sub-Saharan Africa, which has fast-growing populations and high vulnerability to climate change. As a first fund for the new management and with teams located in Nairobi & Lagos, Equator has established itself as a dedicated partner combining local insight with global expertise.

The African continent faces pressing climate challenges that threaten food security and economic stability, with projections indicating that 39 million Africans could face chronic hunger by 2050 due to climate-related impacts. In this context, Equator focuses on supporting start-ups engaged in energy solutions like grid interconnections and renewable energy, sustainable agricultural practices, and innovations in electric mobility.

This investment qualifies for 40% to 60% climate co-benefits, and aligns with Proparco’s strategic pillars of increasing access to economic opportunities and investing in climate initiatives, as affirmed in its 2023 to 2027 objectives. Proparco’s investment via FISEA+ reflects its commitment to foster economic growth through environmentally sustainable initiatives.