As climate change continues to wreak havoc across Africa, the most affected are local communities, women, children, and critical sectors of development. Yet in every crisis lies an opportunity. Climate technology and innovation could provide the solutions most needed to deal with the effects of climate change.
Many start-ups working to address these pressing issues often face challenges, including lack of knowledge, limited funding, and inadequate equipment. But there is hope. Local entrepreneurs and entrepreneur support organizations (ESOs) are emerging as powerful drivers of change. ESOs are moving beyond program delivery to become ecosystem builders—mobilizing capital, supporting entrepreneurs at their most vulnerable stages, and unlocking a pipeline of innovations needed for a sustainable future.
“When people think of climate innovation, many picture high-tech labs in Silicon Valley. But I’d argue the beating heart of climate innovation is just as likely to be a fish farm in Kisumu, a market hub in Lagos, or a locally-led incubator in Dar es Salaam. Here in Africa, entrepreneurs are solving the problems they live with every day,” said Nakami Walunywa, Regional Director – Africa at Village Capital, during an Insights, Investments, and Collaboration knowledge-sharing event at Delta40 Studio in Nairobi.
Community-led projects such as medium-scale fish farming, agribusiness, renewable energy, waste reduction technologies, manufacturing, and livelihood safeguarding initiatives are among the areas driving change. “When solutions are local, they stick. They scale. And they change lives,” added Nakami.
Village Capital has supported over 1,800 entrepreneurs and 230 ESOs in more than 70 countries for the past 15 years. In Africa, the focus has been twofold: helping entrepreneurs become investment-ready, and strengthening locally-led ESOs that provide the infrastructure to make entrepreneurship possible.
The Second Africa Climate Summit concluded in Addis Ababa with the launch of two major green industrialisation initiatives, highlighting that green investment is a key driver for Africa’s sustainable development. These areas include energy, agriculture, water, transport, and resilience.
The summit announced a US$50 billion investment through the Africa Climate Innovation Compact (ACIC) and the African Climate Facility (ACF) in catalytic finance for local climate solutions. In addition, African financial institutions and Development Finance Institutions (DFIs) pledged US$100 billion to support the continent’s green industrialisation agenda—showcasing the growing mobilisation of domestic financial resources for renewable energy and the clean transition.
With such vast investment opportunities, African start-ups now have a real chance to scale their impact. “To turn vision into reality, I propose the launch of an African Climate Innovation Compact, a bold continent-wide partnership uniting our universities, research institutions, startups, rural communities, and innovators. By 2030, the Compact should aim to deliver 1,000 African solutions to tackle climate challenges in energy, agriculture, water, transport, and resilience,” said Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia.
