Despite the recent downturn in funding, climate-focused startups have continued to attract significant investment.
In 2023, they secured one-third of the total investment, and this year they are at the forefront of African startup funding, raising $325 million out of the $1 billion total so far.
Addressing Africa’s Energy Investment Gap
Although climate tech is leading startup funding, Africa still receives a disproportionately small share of global energy investment, accounting for only 3%.
Helios Investment Partners LLP, the largest Africa-focused private investment firm, is taking steps to change this.
Helios and Gaia Fund Managers Join Forces
Helios has partnered with Gaia Fund Managers to launch a groundbreaking climate fund specifically focused on Africa.
With an initial raise of $200 million and a target of $600 million, this fund is set to become the largest of its kind on the continent.
Focus on Renewable Energy and Sustainable Agriculture
The fund will primarily invest in renewable energy and drought-resistant agriculture projects across Africa.
It will target businesses involved in clean energy, sustainable agriculture, eco-friendly transportation, resource recovery, and innovative technologies that accelerate the transition to a low-carbon economy.
Promising African startups like Ghana’s SolarTaxi, Zimbabwe’s NeedEnergy, and Kenya’s Octavia Carbon align with Helios’ investment criteria.
Urgent Need for Sustainable Energy Solutions
With over 600 million Africans lacking access to electricity and billions more relying on harmful cooking methods, the demand for sustainable energy solutions is critical.
This fund aims to empower businesses that can drive the continent’s transition towards a cleaner and more sustainable energy future.