Novastar Raises $40M to Accelerate Green Innovation in Africa

Novastar Ventures, a Nairobi- and Lagos-based venture capital firm, has secured a $40 million equity commitment from the Green Climate Fund (GCF) for its new vehicle, the Africa People & Planet Fund III, targeting a total size of $200 million.

The fund aims to invest in early- and growth-stage startups offering climate solutions across Africa, with a focus on Kenya, Nigeria, Rwanda, South Africa, and Egypt. The GCF’s commitment acts as a catalytic anchor, helping to de-risk the fund and attract private capital into Africa’s fast-growing climate innovation ecosystem.

Other key investors include British International Investment (BII), Sumitomo Mitsui Banking Corporation (SMBC), and Mitsui O.S.K. Lines (MOL) — signaling growing interest from Japanese corporate investors in Africa’s green economy. The Japan International Cooperation Agency (JICA) has also committed $10 million to the initiative.

Founded in 2014, Novastar Ventures currently manages over $200 million in assets and has a strong track record of backing high-impact startups across the continent.

The GCF’s $40 million commitment marks a turning point for climate-tech investing in Africa, enabling larger pools of private capital to flow into startups advancing clean technology, climate resilience, and resource management. By targeting high-potential markets, Novastar is positioning itself to bridge the funding gap for innovative climate-focused ventures — turning Africa into a global frontier for sustainable investment.