 has proposed an equity investment of up to $6M in the Catalyst Fund, a VC vehicle raising $40M){kind=link}
The International Finance Corporation (IFC) has proposed an equity investment of up to $6 million in the Catalyst Fund, a venture capital vehicle seeking to raise $40 million to back early-stage climate technology startups across Africa.
The fund, managed by Catalyst Impact Partners, targets pre-seed and seed-stage startups building scalable solutions for the continent’s climate and livelihood challenges. Its investment strategy focuses on three pillars: fintech for climate resilience, sustainable livelihoods, and climate-smart essential services — areas seen as critical for climate adaptation and economic transformation in Africa.
Catalyst Fund plans to deploy capital across high-growth markets including Nigeria, Kenya, Egypt, Tanzania, South Africa, Morocco, Senegal, Mali, and Uganda. These economies, home to some of Africa’s most vibrant startup ecosystems, are also among the most exposed to climate shocks such as drought, flooding, and heat stress.
The IFC’s proposed investment signals its growing commitment to climate innovation and entrepreneurship in emerging markets. The institution has increasingly aligned its venture portfolio toward climate resilience, positioning private capital as a driver for sustainable growth.
Africa’s climate-tech sector remains nascent but promising. Venture funding for climate and clean-tech startups in Africa surged more than 300% between 2020 and 2023, according to industry data, yet early-stage founders still face major financing gaps.
By channeling catalytic capital into startups at the earliest stages, IFC and Catalyst Fund aim to bridge that funding divide — helping entrepreneurs develop technologies that could both curb emissions and safeguard livelihoods across the continent.