Catalyst Fund, a pan-African venture capital firm, has secured $30m in a second close for its debut climate resilience fund, bolstering its wager that start-ups helping communities adapt to climate shocks represent one of the continent’s most investable frontiers.
The close lifts the fund — which targets pre-seed to Series A founders building practical solutions in agriculture, food systems, energy, water and mobility — closer to its final target, which the firm expects to reach later this year. It brings together development finance, corporate and philanthropic capital, with the International Finance Corporation, the Shell Foundation, the Trafigura Foundation, FASA, Speedinvest and BlinkCV among the new backers. They join early supporters FSD Africa and the Cisco Foundation, which backed the vehicle at first close.
Catalyst Fund operates as both an investor and a venture builder, pairing equity cheques with hands-on operational support delivered through BFA Global. The model is designed to help early-stage companies navigate strategy, product refinement, hiring, commercial traction and follow-on fundraising in markets where such infrastructure is thin. The firm has already deployed capital into 28 companies across 10 African markets.
“Climate adaptation is one of the defining investment themes of the next decade, especially in Africa, where the need is immediate and the entrepreneurial talent is extraordinary,” said Maelis Carraro, founder and general partner. “This second close allows us to double down on backing founders building practical, scalable solutions for a climate-changed world, and supporting them not just with capital, but with the hands-on venture-building support they need to grow.”
The fund’s portfolio illustrates the breadth of that thesis. Keep It Cool, a Kenyan company that won the 2024 Earthshot Prize, deploys solar-powered cold-chain infrastructure to reduce post-harvest losses for fisherfolk and poultry farmers. Tanzania’s MazaoHub combines AI-driven soil intelligence with on-the-ground agronomy and digital market access for smallholder farmers. In Egypt, Bekia runs a tech-enabled circular economy platform that connects households and businesses with waste collectors and recyclers, turning recycling into a traceable, profitable loop.
The addition of IFC, the private sector arm of the World Bank, gives the fund a prominent multilateral stamp. “Entrepreneurs supported through Catalyst Fund are strengthening livelihoods, expanding access to essential services and creating quality jobs in underserved communities,” said Farid Fezoua, IFC’s global director for disruptive technologies, services and funds. “Through this partnership, we are mobilising capital and expertise to help these early-stage ventures scale sustainably, attract private investors and deliver lasting impact.”
FASA, a facility focused on de-risking agri-SME investment in Africa, committed $5m in junior equity. Mamadou Ndao, its investment director, said Catalyst Fund’s strategy and venture-building model “perfectly address the critical gaps faced by early-stage climate entrepreneurs”. The junior tranche is structured to absorb first losses and unlock additional capital from co-investors.
Trafigura Foundation, the philanthropic arm of the commodity trading group, described the commitment as its first impact investing allocation. “By investing in the junior tranche, we aim to be catalytic, helping unlock additional capital into a space that is critical yet chronically underfunded,” said Dario Soto-Abril, its chief executive.
Climate adaptation in Africa remains severely underfinanced relative to the scale of the threat. The continent accounts for a small fraction of global climate finance, with the bulk flowing to mitigation projects such as renewable energy rather than to solutions helping populations cope with droughts, floods, soil degradation and supply chain disruptions. Catalyst Fund argues that backing adaptation start-ups early can yield both strong returns and measurable resilience outcomes, a view that is slowly gaining traction among institutional investors.
“Backing a first-time strategy early is where catalytic capital does its most important work,” said Juliet Munro, director of early-stage finance at FSD Africa. “We committed before first close, helping build the track record that has shown climate adaptation in Africa is investable from pre-seed to Series A, where the need is greatest and capital is scarcest. The second close is a strong validation of that early conviction.”
Catalyst Fund was spun out of the non-profit BFA Global and has nearly a decade of experience backing African entrepreneurs through accelerator programmes and venture-building activities. It launched its dedicated climate resilience fund in response to the growing frequency of climate shocks across the continent and the emergence of founders building commercially viable adaptation businesses.
The second close widens a backer base that mixes development finance institutions, corporates, family offices and foundations — including some investors making their first African commitments. Carraro and her partners Maxime Bayen, Olúwatóyìn Emmanuel-Olubake and Amolo Ng’weno plan to back 40 founders through the fund.
While the firm did not disclose its final target, the $30m second close signals steady progress in an environment where fundraising for Africa-focused venture capital has cooled from the exuberance of the 2021–22 cycle. Data from the African Private Capital Association show that climate-tech deals have held up better than the broader market, as investors look for themes with long-term structural demand.
“Climate shocks are already a reality for millions of people across Africa, and founders building adaptation solutions urgently need access to the right kind of early support,” said Jonathan Berman, chief executive of the Shell Foundation. “Catalyst Fund backs entrepreneurs early and works alongside them to turn proven ideas into scalable businesses.”