BFA Global and FSD Africa have awarded $273,000 in follow-on funding to four East African climate ventures. The fund will enable the early-stage businesses to scale their proven models with additional capital and support.
The four companies are alumni of previous cohorts of the Triggering Exponential Climate Action (TECA) program, a venture-building initiative by BFA Global that supports climate-focused startups from concept to investment readiness.
All four are working in areas the continent urgently needs: clean energy, cold storage, carbon market access, and food systems.
Beyond the money, the businesses will also receive technical support covering operational guidance, model refinement, and investment-readiness preparation.
The four startups and what they are building
Africa Renewables Katalyst (ARK) connects East African renewable energy developers to global renewable energy certificate markets through data systems, verification services, and market access tools. This helps local clean energy projects tap into international financing.
Plas-tech Energies converts plastic waste into clean cooking gas and distributes it through refillable cylinders. For households currently relying on charcoal or kerosene, it offers a cheaper and safer alternative while addressing plastic pollution at the same time.
Samaking runs a solar-powered cold chain infrastructure and a decentralised fish distribution network. Its model reduces post-harvest losses and strengthens market stability for small traders, particularly women, who have historically had no reliable way to store or move perishable goods.
Similar read: Funding in Africa: Kenya, Nigeria slump as Benin and Ivory Coast break into Big 4
Sunwave provides solar-powered ice production and cold storage solutions targeting small-scale fishers and fish traders. The goal is to cut the losses that happen between catch and market, losses that currently eat into the incomes of some of the most economically vulnerable communities in East Africa.
Why the funding is important to investors and the 4 startups
The four businesses are at a stage that investors typically avoid. They have proven their models work. They are not yet large enough to attract significant commercial capital. That gap, between early traction and investment readiness, is where most promising climate ventures in Africa die.
According to a 2025 Sightline Climate report, the number of early-stage deals dropped by about 20% last year, reaching a five-year low. This happened because investors put their money into fewer, bigger companies.
As a result, it has become more difficult for companies to get additional funding, especially in emerging markets.
“Early-stage climate ventures face a critical funding cliff just as they are ready to grow,” said Tyler Ferdinand, director of the TECA program at BFA Global. “Our follow-on support gives them the capital, time, tools, and evidence base they need to build credible, investable businesses that improve resilience in vulnerable communities.”
Mary Kashangaki, early-stage finance manager at FSD Africa, added that access to capital for this category of businesses remains one of the biggest structural gaps on the continent. “They are the majority and provide most employment,” she said. “Enhancing flows to small and growing businesses and tackling climate change remain key priorities for us.”
BFA Global has supported over 118 ventures across Africa, Latin America, and Asia since 2006. Its portfolio companies have collectively raised over $815 million in follow-on funding and maintain a survival rate above 80%, compared to a global startup average of roughly 20%.
Technext Newsletter
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!
