GCF Commits $40 Million to Novastar’s Africa Climate Tech Fund to Drive Sustainable Growth Across the Continent
Operating primarily in Kenya, Nigeria, Rwanda, South Africa, and Egypt, the initiative aims to scale proven innovations from these and other emerging markets.
The Green Climate Fund (GCF) has committed $40 million in equity investment to the Novastar Ventures Africa People and Planet Fund III (NVIII) — a $200 million venture capital fund designed to back early- and growth-stage companies developing climate solutions across Africa.
This investment addresses one of the most pressing challenges in global climate finance: the vast gap between Africa’s climate investment needs and current funding levels. The continent requires an estimated $2.8 trillion between 2020 and 2030 to achieve its Nationally Determined Contributions (NDCs) under the Paris Agreement. Yet, in 2019 and 2020, Africa attracted only 12% to 15% of the required financing.
GCF’s participation is intended to serve as a catalytic anchor, helping to de-risk the fund and attract additional private capital. By mitigating concerns related to currency volatility, political risk, and limited exit opportunities, the GCF investment aims to pave the way for greater private-sector participation in Africa’s climate transition.
The fund will invest across multiple sectors, including climate-smart agriculture, mobility, and clean energy access.; across five priority markets — Kenya, Nigeria, Rwanda, South Africa, and Egypt, — while also exploring opportunities in other regions. Its overarching goal is to scale affordable, high-impact climate technologies, strengthen Africa’s climate innovation ecosystem, and mobilise private capital toward sustainable growth.
