Investments in climate action solutions in Africa have been on a steady rise. According to the Partech State of Tech in Africa 2022 report, African tech startups in the region raised more than USD860 million in equity funding, with climate tech emerging as the second most funded sector, following fintech.
Despite only being responsible for less than 4 percent of global greenhouse gas (GHG) emissions, Africa finds itself in a precarious position as one of the continent’s hardest hit by the climate crisis. A report released by the United Nations High Commissioner for Human Rights projects Africa will experience temperatures rising 1.5 times faster than the global average.
Experts say it could lead to complete deglaciation of mountainous regions by 2050, increased sea levels, prolonged droughts, excess heat and cold spells, among other extreme weather events, many of which we are already experiencing.
These effects will not only have a devastating impact on Africa’s biodiversity, and this is a particularly distressing concern given that the continent hosts a quarter of the world’s remaining rainforests, but the livelihoods of Africans, especially those dependent on agriculture.
The repercussions of these effects could ripple through vital sectors heavily dependent on manual labor and primarily driven by youth and as a result hamper human productivity.
While climate financing typically favors well-established ventures that align with the high-growth trajectory that many investors seek, a crucial oversight is happening - the youth. The youth are not just stewards but active architects, shaping adaptation strategies within their communities.
The Climate Promise, UNDP’s flagship program has been intentional in this, supporting 120 countries to reduce their greenhouse gas emissions and meet the challenges of climate change, youth have played a prominent role, with over 80 countries facilitating youth-inclusive partnerships and youth-led actions.
Investing in Youth-Led Climate Ventures
The surge in climate financing offers a unique opportunity for funds specifically dedicated to the pivotal role the youth play, and we are seeing funding mechanisms such as The Adaptation Fund targeting not just governments and industry giants; but also being accessible to gender and youth-inclusive, early-growth stage SMEs in Kenya and Uganda, through intermediaries.
Are there opportunities for young individuals to tap into climate funds? Without a doubt, there are, and Entrepreneur Support Organizations (ESOs) i.e. incubators, accelerators, tech, and business hubs, are playing a critical role in channeling funds towards youth-led ventures, through their programs.
A good example is Village Capital, which has worked with partners such as Moody’s Foundation, The Lightsmith Group, and other funding organizations that have dedicated funds to climate-related activities. The organization has supported various youth-led startups developing agri-circularity, climate adaptation, mitigation and ecosystem restoration solutions.
Similarly, The Land Accelerator, an initiative of the World Resources Institute (WRI), is supporting ventures (50 percent of whom are youth-led) focused on restoring degraded forests, farmland and pasture in Africa.
The African YouthADAPT Challenge, a collaborative effort between the Global Center on Adaptation, the African Development Bank, and the Climate Investment Funds (CIF), is another prime illustration of a program that is supporting youth-led, climate action initiatives.
As we set our eyes on the upcoming Africa Climate Summit which will see policy makers and global leaders converge in Kenya to chart the way forward for green growth and sustainable development, we hope to see a strong and intentional emphasis on youth inclusion, especially among financiers, custodians and administrators of funds such as the recently released Resilience and Sustainability Facility by the IMF - to ensure that the youth are incorporated into their allocation of these funds.
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Eva is the Senior Communications Associate (EMEAA) at Village Capital, an organization unlocking capital for impact startups building emergent solutions to environmental, social, and economic challenges around the world
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