Startup investor Novastar Ventures launched one of the continent’s largest ever funds backing climate-focused tech businesses.
The Kenya-based firm, which raised $147 million, has already made six investments from the fund, including in Mexican biodigester producer Sistema.bio that serves farmers in Kenya.
African venture capital funds dedicated to climate solutions are rare. Existing African climate-tech funds include Equator’s $55 million fund raised last year and the Persistent Africa Climate Venture Fund that has raised about three-quarters of its $70 million target. Development financiers feature significantly in the investor base for African climate funds, since they tend to back projects that typically fail to attract funding from more risk averse venture capitalists.
The drive for climate investments in Africa stem from the disproportionate burden the continent bears from a changing climate. The continent contributes less than 4% of carbon emissions, but annual adaptation costs will be at least $30 billion over the next decade, according to the World Meteorological Organization.