IFC Commits USD 6 M To Catalyst Fund’s USD 40 M Africa Climate Tech Vehicle

The International Finance Corporation (IFC) has committed up to USD 6 M to Catalyst Fund’s new USD 40 M vehicle, which previously announced a successful first close in 2023 with over 20% committed and will back early-stage climate tech startups across Africa.

The fund, managed by Catalyst Impact Partners Corp, will target pre-seed and seed companies in fintech for climate resilience, sustainable livelihoods, and climate-smart essential services. Its geographic scope spans major tech hubs including Nigeria, Kenya, Egypt, South Africa, Senegal, and Uganda.

The IFC’s commitment combines USD 4.5 M in equity from its own account with USD 1.5 M from the Women’s Entrepreneur Finance Initiative (We-Fi). The latter acts as a philanthropic tranche to de-risk the fund and incentivise private investors, while also mandating dedicated support for women-led ventures.

Catalyst Fund has already backed startups like Earthbond (Nigeria), Oko Finance (Mali), and Biobuu (Tanzania). With IFC’s stamp of approval, the new fund aims to scale solutions for Africa’s most climate-vulnerable communities.