Driving Climate Solutions Across Sub-Saharan Africa

Catalyst Fund, a leading Kenyan pre-seed accelerator, has been awarded over KSh 33 million as part of the 2025 phase of the Empowering Sustainable Entrepreneurship in Africa program. This initiative is spearheaded by Village Capital, a global leader in impact-focused capital allocation, and supported by the Norwegian Agency for Development Cooperation (NORAD). The program is a strategic push to strengthen Africa’s entrepreneurial ecosystem, with a focus on climate-tech innovations.

The fund will support Catalyst Fund alongside four other ecosystem builders: Reach for Change Foundation in Ghana, Ennovate Ventures in Tanzania, Emerge Livelihoods in Malawi, and IdeiaLab in Mozambique. Together, these organizations will drive capital and resources toward 30 climate-focused startups across Sub-Saharan Africa, addressing critical environmental challenges in the region.

Village Capital: Championing Entrepreneurship in Africa

Village Capital has established itself as a cornerstone in Africa’s startup ecosystem over the past 12 years, running over 14 accelerator programs across 15 countries. Its initiatives have benefited over 120 locally-based startups and 78 Entrepreneur Support Organizations (ESOs). Village Capital’s focus spans diverse sectors such as sustainability, financial inclusion, hardware innovation, and the future of work.

Through its collaboration with NORAD, Village Capital aims to resolve persistent funding shortages in Africa’s climate-tech sector, which has often struggled to secure adequate investment. The organization’s tailored programs co-designed with local accelerators are specifically structured to provide scalable solutions for pressing climate challenges.

Catalyst Fund’s Role in Kenya’s Climate-Tech Growth

Catalyst Fund, based in Nairobi, is uniquely positioned to drive impactful climate solutions in Kenya and beyond. As a pre-seed accelerator, it specializes in nurturing early-stage startups with high potential. By participating in this initiative, Catalyst Fund will focus on building capacity, creating connections, and deploying capital to climate-tech startups that address issues such as sustainable agriculture, clean energy, and waste management.

Kenya has been a hub for climate innovation in Africa, with initiatives like M-KOPA, a solar energy startup, and Twiga Foods, which streamlines food distribution. Catalyst Fund’s involvement will further bolster Kenya’s leadership in green entrepreneurship, enabling local innovators to access international networks and funding opportunities.

Tackling Africa’s Climate Challenges

Africa is disproportionately affected by climate change despite contributing less than 4% of global greenhouse gas emissions. From prolonged droughts in East Africa to rising sea levels in West Africa, the continent faces an urgent need for sustainable solutions.

The Empowering Sustainable Entrepreneurship in Africa program aims to address these challenges by focusing on climate-tech startups that can mitigate environmental issues while driving economic growth. By funding innovative solutions such as renewable energy technologies, efficient irrigation systems, and sustainable waste management, the initiative promises long-term benefits for communities and ecosystems.

A Focus on Ecosystem Builders

The program recognizes the importance of ecosystem builders—organizations that connect startups with mentorship, capital, and market access. These entities play a critical role in ensuring that startups can transition from ideation to scalable solutions.

Susan Nakami, Regional Lead for Africa at Village Capital, emphasized the importance of this interconnected approach:
“We are committed to reimagining capital deployment and building a more connected ecosystem where ESOs play a pivotal role in driving entrepreneurship and facilitating access to capital.”

This interconnected strategy ensures that startups are not only funded but also supported throughout their growth journeys.

NORAD’s Commitment to Green Solutions

The Norwegian Agency for Development Cooperation has a long history of supporting environmental initiatives in Africa. NORAD’s backing for the Empowering Sustainable Entrepreneurship in Africa program highlights its commitment to fostering innovation in climate-sensitive sectors. By enabling ecosystem builders like Catalyst Fund, NORAD is ensuring that funding reaches grassroots innovators who understand the local challenges and opportunities.

Broader Implications for Africa’s Economy

The focus on climate-tech is timely, as Africa stands at a crossroads between rapid population growth and environmental vulnerabilities. Investments in this sector can yield multiple benefits, including job creation, increased resilience to climate impacts, and enhanced food security.

The Catalyst Fund’s selection for this initiative is a testament to Kenya’s vibrant startup ecosystem and its capacity to lead in green innovation. By aligning resources with local expertise, the program is expected to generate ripple effects across the continent, inspiring more entrepreneurs to venture into climate-tech.

A Bright Future for Africa’s Green Economy

As Africa accelerates its transition toward sustainability, programs like the Empowering Sustainable Entrepreneurship in Africa provide a vital lifeline for innovators addressing the continent’s most pressing challenges. Catalyst Fund’s involvement is a significant step in this journey, ensuring that Kenya remains at the forefront of climate-tech innovation.

By mobilizing KSh 33 million and facilitating connections between startups, investors, and policymakers, this initiative sets the stage for a thriving green economy in Sub-Saharan Africa. With continued support from international partners like NORAD and Village Capital, the continent is poised to unlock its full potential as a leader in sustainable development.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

11th December, 2024