Nine African early-stage climate tech businesses are supported by the pre-seed VC and accelerator Catalyst Fund, which has invested $1.8 million to accelerate their growth trajectory and increase their impact.
The investment is going to nine startups: Keep It Cool in Kenya; NoorNation in Egypt; Thola in South Africa; Tolbi in Senegal; Mazao Hub and Medikea in Tanzania; Earthbond, Zebra Cropbank, and Scrapays in Nigeria.
Catalyst Fund closed its first round in September 2023, raising $8.6 million of its $40 million goal to fund investments in African climate entrepreneurs. Among the notable investors are Andrew Bredenkamp, FSD Africa, FSDAi, Cisco Foundation, and USAID Prosper Africa.
Established in 2016, and managed by BFA Global, the Catalyst Fund helps companies have access to funding, talent, and market prospects. The fund is investing in African entrepreneurs that are tackling climate change issues for the second time with this round.
The Catalyst Fund gave $2 million to ten firms in January 2023 that were working on creating solutions for communities in Africa that were susceptible to climate change.
Consequently, the portfolio of Catalyst Fund now includes 19 businesses that operate in eight different markets: Kenya, Egypt, Morocco, Nigeria, Senegal, South Africa, Tanzania, and Uganda. This is the result of the most recent investment. The Catalyst Fund team will provide these startups with all-encompassing venture building support, essentially incorporating them as extensions of their own teams.
These firms are actively tackling climate-related issues in a number of industries, such as waste management, energy access, healthcare, and agriculture.
According to a survey conducted in 2023, more than 110 million Africans were directly impacted by weather, climate, and water-related hazards in 2022, with economic losses exceeding $8.5 billion.
The startups’ models “empower farmers, healthcare providers, waste workers, and small and medium businesses to effectively adapt to the impacts of climate change, thus fostering economic growth with a positive climate impact,” according to Maelis Carraro, Managing Partner at Catalyst Fund, who discussed the investment.
Furthermore, “with these latest investments, [Catalyst Fund] is committed to further diversifying its portfolio across various models, climate adaptation sectors, and geographic regions,” stressed Catalyst Fund Operating Partner Maxime Bayen.
Catalyst Fund obtained a $3.5 million investment from FSD Africa in 2022 with the aim of expanding its reach and capacity throughout the African continent. Its goal with this money is to provide full venture-building help and support 40 pre-seed impact businesses that are concentrated on creating solutions for underprivileged populations in Africa that are vulnerable to climate change.