Africa is facing pressing climate challenges, yet it also holds enormous potential to lead with climate-smart innovations that boost livelihoods and grow economies. Entrepreneurs across the continent are pioneering solutions ranging from solar-powered storage for smallholder farmers to cutting-edge carbon removal technologies, creating both social impact and investment opportunities.
Central to this transformation is Catalyst Fund, an Official Nominator to The Earthshot Prize. The venture capital fund supports early-stage climate tech startups in Africa by providing capital, tailored venture-building support, and access to networks. Catalyst Fund has empowered innovators like 2024 Earthshot Prize winner Keep IT Cool to scale solutions in climate adaptation, food security, waste management, and more. In partnership with initiatives like Africa: The Big Deal, Catalyst Fund has helped identify promising solutions and assess the African climate investment landscape since 2023. Despite Africa receiving roughly $30 billion annually in climate finance, the continent needs around $280 billion annually by 2030, with only 14% currently coming from the private sector—highlighting a significant opportunity for growth.
To attract more private investment, African climate-tech startups require diversified funding sources, including grants, equity, debt, and blended finance strategies. These approaches help reduce risk, accelerate local climate action, and make the sector more attractive to investors. Climate-tech companies already secured a third of all venture funding in Africa in 2024, reflecting the growing investor interest. Catalyst Fund’s Investor Pulse survey indicated that over 60% of investors have been active in African climate-tech for one to three years, often in smaller deals under $500,000, yet high-quality solutions are increasingly available. The focus is expanding beyond energy and water to mobility, climate-smart agriculture, carbon capture, and climate data analytics, signaling a broadening landscape for African innovation.
Catalyst Fund supports startups not only with investment but also through strategic guidance, business development, and network access. One example is Keep IT Cool, which provides affordable cold storage to reduce post-harvest food waste and increase smallholder farmers’ incomes. Catalyst Fund has supported the venture since 2023, helping it secure follow-on funding from investors like Acumen and the Global Innovation Facility. Similarly, Nigeria’s Zebra CropBank uses solar-powered micro-warehouses to reduce crop losses and improve market access, boosting farmers’ incomes and food security. Through these interventions, Catalyst Fund demonstrates how a combination of capital, venture support, and networks can scale solutions that deliver measurable climate and economic benefits.
Looking ahead, Catalyst Fund remains optimistic about Africa’s climate-tech sector, particularly in adaptation and resilience solutions. The fund has already backed 24 startups and plans to add 16 more by 2026, many of which are attracting follow-on investment. While progress is promising, much more capital and innovation will be needed by 2030 to ensure African countries meet their climate goals. With sustained investment and support, climate resilience could become one of the largest growth markets in Africa’s future economy.
Related Posts
