IFC backs Catalyst Fund with $6m to drive climate-tech growth in Africa

The fund focuses on three verticals: fintech for climate resilience, sustainable livelihoods, and climate-smart essential services such as water, energy, and agriculture

The International Finance Corporation (IFC) has announced a proposed equity investment of up to $6 million in Catalyst Fund, a pre-seed venture capital and accelerator platform targeting early-stage climate-tech startups across Africa.

Catalyst Fund, managed by Catalyst Impact Partners, is seeking to raise $40 million to back mission-driven founders developing technologies that bolster the resilience of climate-vulnerable and underserved communities. The fund focuses on three verticals: fintech for climate resilience, sustainable livelihoods, and climate-smart essential services such as water, energy, and agriculture.

Initially structured as a grant accelerator, Catalyst Fund transitioned in 2023 to an equity investment model and achieved its first close in September 2023. The IFC’s participation would strengthen the fund’s capital base while signaling confidence in the commercial viability of Africa’s emerging climate-tech ecosystem.

The proposed investment also aligns with the IFC’s broader strategy to mobilize private capital for climate innovation and address the acute early-stage funding gap faced by African startups.