Novastar Secures $40M from GCF to Invest in African Climate Startups
TLDR
- Novastar Ventures has secured a $40 million equity commitment from the Green Climate Fund (GCF) for its new fund, Africa People & Planet Fund III, targeting a total size of $200 million.
- The Nairobi- and Lagos-based venture capital firm aims to invest in early- and growth-stage climate-solution startups across Africa
- The GCF commitment is intended as a catalytic anchor to de-risk the fund and attract additional private capital into Africa’s climate innovation ecosystem
Novastar Ventures has secured a $40 million equity commitment from the Green Climate Fund (GCF) for its new fund, Africa People & Planet Fund III, targeting a total size of $200 million.
The Nairobi- and Lagos-based venture capital firm aims to invest in early- and growth-stage climate-solution startups across Africa, focusing on Kenya, Nigeria, Rwanda, South Africa and Egypt. The GCF commitment is intended as a catalytic anchor to de-risk the fund and attract additional private capital into Africa’s climate innovation ecosystem.
Other key investors in the fund include British International Investment (BII), Sumitomo Mitsui Banking Corporation (SMBC) and Mitsui O.S.K. Lines (MOL), signalling growing interest from Japanese corporate capital in Africa’s green economy.
The Japan International Cooperation Agency (JICA) has previously committed $10 million to the fund. Founded in 2014, Novastar manages over US$200 million in assets and has a track record of backing impactful startups on the continent.
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Points clés à retenir
The GCF’s $40 million commitment to Novastar’s fund marks a turning point for Africa-focused climate-tech investing, providing a credible “anchor” that can mobilise larger pools of private capital. By targeting a US$200 million fund, Novastar is positioning itself to bridge the funding gap for startups advancing clean technology, climate resilience and natural-resource management across major African markets. Investors such as BII, JICA, SMBC and MOL bring both capital and strategic support, reinforcing the fund’s ability to unlock cross-border and corporate-driven value. For African climate startups, this means access to deeper growth capital, stronger governance and global market linkages. The fund’s geographic and sector spread—covering Kenya, Nigeria, Rwanda, South Africa and Egypt—aligns with high-potential innovation hubs and markets facing urgent climate adaptation needs. Ultimately, the deal signals that climate-tech in Africa is no longer niche, but a serious investment frontier with institutional backing and scalable business models.
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