Africa-Press – Botswana. Africa’s venture capital sector is being urged to shift its focus towards climate-tech startups in a bid to tackle the continent’s growing environmental challenges. Ventures Platform, a prominent early-stage venture capital fund in Africa, has unveiled a landmark white paper calling for increased investment in climate-resilient businesses.
Titled “Innovating for a Sustainable Future: Leveraging Venture Capital and Startup Innovation to Combat Climate Change in Africa”, the document argues that venture capital (VC) can play a pivotal role in driving sustainable development and mitigating the effects of climate change on the continent.
Launched at the Africa Prosperity Summit in Lagos, the paper underscores the paradox that Africa, despite contributing less than 4% of global greenhouse gas emissions, is disproportionately impacted by the effects of climate change. It proposes a new framework for African VCs and startups, urging them to prioritize climate-smart solutions in sectors such as infrastructure, agriculture, and renewable energy. This strategy, according to the white paper, could help mitigate climate risks while creating business opportunities across the continent.
Dotun Olowoporoku, Managing Partner at Ventures Platform, stressed the urgency of integrating climate resilience into business models, noting that startups in Africa are well-positioned to provide innovative solutions to local environmental challenges. “While Africa faces immense challenges from climate change, it also presents vast opportunities for startups to innovate and scale solutions,” Olowoporoku said at the paper’s launch. He pointed to companies like MAX, Rana Energy, and ThriveAgric, which have used technology to address environmental issues and enhance climate resilience, showing that tech-driven solutions can play a key role in Africa’s climate response.
However, the white paper also points out that many African VCs have yet to prioritize climate tech in their investment portfolios, focusing instead on traditional sectors like fintech, healthtech, and insurtech. Ventures Platform argues that the time has come for venture capital firms to broaden their focus and embrace climate tech as an essential area for investment. This shift, the paper suggests, will not only help build a more sustainable and resilient Africa but will also unlock significant business potential.
The document highlights that for startups to secure VC backing, they must demonstrate both the potential for large-scale climate impact and the ability to deliver rapid growth. It also calls for non-climate-focused VCs to recognize the long-term value of supporting climate-smart startups, which can drive both environmental sustainability and economic growth. As Dolapo Morgan, Senior Investment Associate at Ventures Platform, emphasized, the urgency of addressing climate change must be matched by a corresponding shift in the way investors think about the future of Africa’s tech ecosystem.
In addition to the calls for increased VC investment in climate tech, the white paper proposes several practical recommendations for fostering growth in the sector. These include establishing a dedicated climate innovation fund to support underrepresented groups in climate entrepreneurship, developing region-specific metrics to assess the success of climate-focused startups, and facilitating cross-border collaborations to enhance the impact of climate tech innovations across the continent.
The paper also calls for a sector-wide climate opportunity assessment to identify key areas for investment and innovation, ensuring that resources are directed toward the most promising solutions for Africa’s environmental challenges.
Ventures Platform’s white paper is a timely and crucial call to action for African investors, entrepreneurs, and policymakers to unite in building a more sustainable future. With Africa at the frontline of the climate crisis, the need for climate-resilient business models has never been greater. By directing funding towards startups that can drive innovation in climate solutions, Africa has the potential to not only mitigate the effects of climate change but also emerge as a global leader in climate technology.
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