Novastar Ventures Bags USD 40 M From Green Climate Fund For USD 200 M Africa Climate Fund

Novastar Ventures has secured a USD 40 M equity commitment from the Green Climate Fund (GCF) for its new USD 200 M Africa People and Planet Fund III, aimed at backing early and growth-stage startups building climate solutions across the continent.

The Nairobi- and Lagos-based VC will invest in companies advancing climate resilience, clean technology, and natural resource management, focusing on Kenya, Nigeria, Rwanda, South Africa, and Egypt. The GCF’s investment will act as a catalytic anchor to de-risk the fund and attract more private capital into Africa’s climate innovation ecosystem.

Other investors include British International Investment (BII), Sumitomo Mitsui Banking Corporation (SMBC), and Mitsui O.S.K. Lines (MOL), signalling growing Japanese corporate interest in Africa’s green economy.

The Japan International Cooperation Agency (JICA) had previously committed USD 10 M to Novastar’s Africa People & Planet Fund III to support startups driving economic inclusion and climate action.

Founded in 2014, Novastar manages over USD 200 M in assets and has backed some of the continent’s most impactful startups. The new fund aims to scale affordable climate-tech and drive inclusive, sustainable growth across Africa.