Egypt’s burgeoning agriculture and climate-tech sector is set to receive a significant boost, with Novastar Ventures allocating a USD 50 million fund to back local startups. The investment is part of a larger USD 200 million equity injection from the Green Climate Fund (GCF) into Novastar’s third investment fund, underscoring a strong commitment to sustainable innovation in the region.
A Strategic Allocation for Climate Resilience
The dedicated fund aims to empower Egyptian companies developing critical climate technology solutions within the agriculture industry. Dr. Manal Awad, Minister of Local Development and Acting Minister of Environment, confirmed that the USD 50 million equity will be channelled directly to startups and growth-stage companies working to solve pressing environmental challenges.
The initiative is designed to help these ventures scale affordable climate solutions that not only support adaptation to environmental pressures but also reduce the carbon footprint of economic growth.
Targeting Core Climate Challenges
The investment will be concentrated on three core pillars essential for building a sustainable future for Egypt’s agricultural landscape.
Funding will target companies providing services that enhance climate adaptability and resilience, clean technologies designed to slash carbon emissions, and innovative climate solutions for the effective management of natural resources. This focus ensures that capital is directed toward ventures with the highest potential for impact.
Building a Pan-African Ecosystem
While this fund specifically targets Egypt, it aligns with Novastar’s broader mission to cultivate a robust climate-tech innovation ecosystem across Africa. By leveraging private capital, the firm aims to demonstrate that investing in climate resilience can yield strong financial returns alongside profound social and environmental benefits.
The investment highlights Egypt’s increasingly vital role in pioneering climate-tech advancements for Africa’s agriculture sector, positioning the country as a key hub for sustainable growth and innovation.
About Novastar Ventures
Novastar Ventures is a venture capital firm investing in early and growth-stage businesses across Africa. The firm backs entrepreneurs with high-growth potential who are addressing major economic and social challenges in sectors such as financial services, healthcare, agriculture, and climate-tech, aiming to deliver both significant financial returns and social impact.
Source: Waya
