The approval, granted during the GCF's 43rd board meeting in Incheon, South Korea, will see Novastar Ventures mobilize financing for climate initiatives across five African nations, with Egypt being a primary focus.
Dr. Manal Awad, Minister of Local Development and Acting
Minister of Environment, stated that the $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, and innovative climate solutions
for natural resource management.
Dr. Awad highlighted that providing capital to firms
operating in this technology space is essential for expanding their investments
in both climate change mitigation and adaptation, noting that Egypt is among
the countries most vulnerable to climate impacts.
The fund aims to support startups and growth-stage companies to foster a clean, inclusive, and sustainable development path across Africa by scaling up affordable climate solutions. Novastar's broader mission is to build a robust climate-tech innovation ecosystem by mobilizing private capital to achieve both climate resilience and strong financial returns.