The Green Climate Fund (GCF ) has approved the Novastar Ventures  Africa People and Planet Fund III (NVIII) — a $200 million venture capital fund designed to scale climate-tech innovation and sustainable solutions across Africa. The decision was formalised on 30 October 2025 during the GCF’s 43rd Board Meeting (B.43).

Africa faces a staggering $2.8 trillion financing gap to achieve its climate commitments between 2020 and 2030, yet private investment in the sector remains among the lowest globally. The NVIII fund seeks to bridge this gap by backing early and growth-stage technology-driven companies that promote clean, inclusive, and sustainable development.

Backed by GCF’s equity investment, the fund will channel capital into ventures focused on three transformative areas:

• Digital and service innovations that enhance climate adaptation and resilience.

• Clean technologies that decarbonise key sectors and drive low-carbon growth.

• Climate-tech solutions for efficient management of natural resources.

Operating primarily in Kenya, Nigeria, Rwanda, South Africa, and Egypt, the initiative aims to scale proven innovations from these and other emerging markets. By doing so, it seeks to strengthen Africa’s climate-tech startup ecosystem, attract private capital, and foster long-term resilience.

Developed under GCF’s Project-Specific Assessment Approach (PSAA), the NVIII fund represents a major step toward unlocking Africa’s potential as a hub for green innovation and sustainable technology entrepreneurship.