Equator Secures $55M to Attract Private Capital into African Climate Tech

News World

Published by Stephen Oluwadara at March 11, 2025

How Equator is Positioning For The Changing Climate Tech Ecosystem

Climate tech startups in African countries have had to navigate a more challenging funding landscape than their counterparts in more developed economies, where governments often subsidize companies working on greener technologies.

They must instead rely heavily on development finance institutions (DFIs), foundations, and endowments, which makes them especially susceptible to shifts in global capital flows.

As aid and development finance budgets shrink, DFIs deploy less capital, adding pressure on African startups. The situation is worse for climate tech companies, which require more capital than traditional tech startups.

With this new fund, Equator wants to bridge the financing gap and attract private investors to the region. “We are needed more than ever to invest in technology and scalable ventures tackling fundamental climate challenges,” said Nijhad Jamal, managing partner at Equator. “These investments will help reduce dependence on aid and instead bring more global private capital into the region.”

The venture firm aims to invest in 15 to 18 startups, providing funding ranging from $750,000 to $1 million for seed-stage companies and up to $2 million for those in Series A.

In addition, the firm will assist startups beyond capital with unit economics, governance, and expansion strategies. Some of the funds will also be reserved for follow-on investments, with Equator mobilising its limited partners (LPs) as co-investors to bring in additional equity, debt, or blended financing.

Equator’s Investment Approach To Focus on Commercial Viability

Equator’s investment approach aligns with the pressing climate challenges in Africa, a continent that contributes less than 3% of global energy-related CO₂ emissions but suffers immensely from climate change. The venture firm backs startups that address both economic and environmental challenges arising from these issues.

Although climate tech investments have grown, changing market conditions have altered investor expectations. Initially, the emphasis was on social impact, but today, investors demand more apparent economic value from climate solutions. Companies are now expected to prove profitability and strong unit economics rather than relying on impact alone.

Jamal highlighted key areas where climate startups are showing commercial viability. These include cost-effective electric vehicles, precise climate insurance for extreme weather, and AI-driven logistics solutions. Equator-backed companies like Roam Electric, Ibisa, and Leta are building such innovations.

“The narrative has shifted,” Jamal said. “It’s no longer just about development and impact. It’s about mobilising private capital for scalable ventures that solve problems. The focus today is even more on things like unit economics and the path to profitability because people know there isn’t just [enough] capital to throw at ventures to scale without thinking about monetization, real economics, profitability or exits.”

Founded in 2023, Equator’s leadership team includes Jamal and Morgan DeFoort. Before co-founding Equator, Jamal worked at BlackRock and Acumen Fund, leading cleantech investments.

He also founded Moja Capital, an early-stage investment fund with an Equator-aligned strategy. Among his notable investments are SunCulture, a Kenyan off-grid solar company, Apollo Agriculture, and Odyssey Energy Solutions. The venture capital firm is based in Nairobi, Kenya, with offices in Lagos, London, and Colorado.

Image Credits: Equator