A $200 million venture capital fund has been approved by the Green Climate Fund (GCF) to scale climate-tech innovation and sustainable solutions across Africa.
The continent made certain climate commitments for the period 2020–2030. However, it faced a $2.8 trillion financing gap to achieve these goals. With private sector investment in this area remaining low globally, closing this gap seemed challenging.
The NVIII fund aims to address this by supporting early and growth-stage technology-driven companies that promote clean, inclusive, and sustainable development.
Primarily operating in Kenya, Nigeria, Rwanda, South Africa, and Egypt, the fund will focus on developing digital and service innovations that enhance climate adaptation and resilience, decarbonising key sectors through clean technologies, and providing climate-tech solutions for the efficient management of natural resources.
Through this initiative, Africa’s entrepreneurial ecosystem is expected to be strengthened, creating opportunities to attract additional private capital to the region.