• The Green Climate Fund approved a USD 200M investment in Novastar Ventures, with USD 50M dedicated to Egypt’s agriculture-focused climate-tech projects.
• The funding will support Egyptian startups enhancing climate resilience, reducing carbon emissions, and innovating natural resource management solutions.
• Novastar aims to build a robust African climate-tech ecosystem by leveraging private capital for sustainable, inclusive, and profitable growth.

Novastar

The Green Climate Fund (GCF) has approved a USD 200 million equity investment into the Novastar Ventures Third Investment Fund, This includes USD 50 million specifically allocated for climate-tech projects in Egypt.

Dr. Manal Awad, Minister of Local Development and Acting Minister of Environment, stated that the USD 50 million equity will be directed toward investing in Egyptian companies focused on climate technology within the agriculture sector.

The funding will target three core pillars:

• Services that enhance climate adaptability and resilience
• Clean technologies aimed at cutting carbon emissions from economic growth
• Innovative climate solutions for natural resource management

Climate Tech

The fund aims to help startups and growth-stage companies drive sustainable and inclusive growth across Africa.  It plans to achieve this by scaling affordable climate solutions that support adaptation and reduce environmental impact.

Its broader mission through this investment is to foster a robust climate-tech innovation ecosystem. This is through leveraging private capital to achieve both climate resilience and strong financial returns.

Novastar Ventures is a venture capital firm that invests in early and growth-stage businesses in Africa. Their focus is on companies that have high growth potential and can deliver both financial returns and social impact. Furthermore, it typically invests in sectors like financial services, healthcare, agriculture, and climate-tech. This is in an effort to support innovations that address Africa’s pressing economic and social challenges.

Bottom line: The investment underscores Egypt’s growing role in advancing climate-tech innovation across Africa’s agriculture sector amid rising environmental and economic pressures.