Ventures Platform, an early-stage venture capital fund committed to fostering innovation across Africa, has launched a groundbreaking climate tech white paper titled “Innovating for a Sustainable Future: Leveraging Venture Capital and Startup Innovation to Combat Climate Change in Africa.” Unveiled at the Africa Prosperity Summit in Lagos, the document emphasizes the critical role of startups and venture capital in addressing Africa’s unique climate challenges and scaling climate-smart solutions tailored to local ecosystems.
The white paper outlines a strategic framework that integrates adaptation, mitigation, and enabling mechanisms to guide African venture capital (VC) and startups in building climate-resilient models. It also offers actionable insights for startups seeking to secure venture capital funding while addressing climate challenges.
Africa’s Climate Imperative
Despite contributing less than 4% of global greenhouse gas emissions, Africa faces disproportionate climate risks, from severe droughts to coastal flooding. Ventures Platform’s white paper stresses the urgency of creating climate-resilient infrastructure, promoting sustainable land use, and fostering renewable energy adoption to mitigate these impacts.
“Africa is at the receiving end of the world’s climate disaster,” said Dolapo Morgan, Senior Investment Associate at Ventures Platform. “It is imperative that entrepreneurs focus on building climate-resilient business models while creating innovative solutions to tackle these challenges. Our white paper is a call for a coordinated African response to harness the opportunities that climate change presents.”
A Framework for Action
The white paper proposes a three-pronged framework for addressing climate challenges:
- Adaptation: Developing infrastructure and agricultural practices that can withstand climate-related disruptions.
- Mitigation: Reducing emissions through renewable energy and sustainable land management.
- Enablers: Establishing financial mechanisms, educational programs, policy frameworks, and technological innovations to support climate action.
Recommendations for Scaling Climate Innovation
The report highlights critical strategies to amplify climate innovation in Africa:
- Inclusive Climate Innovation Funds: Support underrepresented groups in climate entrepreneurship.
- Africa-Specific Metrics: Develop metrics that measure both environmental and socio-economic impacts.
- Cross-Border Collaboration: Foster partnerships among VCs through networking events, joint investments, and knowledge sharing.
- Sector-Specific Assessments: Identify high-potential sectors for climate innovation in Africa.
The Role of Startups and VCs
Dotun Olowoporoku, Managing Partner at Ventures Platform, underscored the importance of aligning business goals with climate resilience. “Startups like MAX, Rana Energy, and ThriveAgric demonstrate the power of tech-driven solutions in addressing local and global climate issues. Venture capitalists must drive this change by funding innovations that combine climate impact with strong economic returns.”
Ventures Platform’s investments span over 90 startups across Africa, including category leaders such as Moniepoint, Mdaas Global, and Tanel Health. While not a dedicated climate fund, the firm prioritizes sustainability by supporting startups that incorporate climate-resilient practices.
Driving Climate Resilience Through VC
The white paper also identifies the dual challenge for African climate tech startups: demonstrating climate impact while achieving venture-scale economics. To bridge this gap, Ventures Platform provides a comprehensive guide on ecosystem support, operational strategies, and challenges faced by startups and VCs.
Towards a Climate-Smart Ecosystem
By integrating climate resilience into investment and operational practices, Ventures Platform aims to catalyze a tech-driven response to Africa’s climate crisis. “Building climate-resilient business models can unlock environmental, societal, and economic sustainability,” Olowoporoku noted. “This is not just a necessity—it’s an opportunity for transformative growth in the African tech sector.”
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