Kenya’s Novastar Ventures has announced a $50 million investment in Egypt’s agriculture and climate technology sector through its third fund, marking a major step toward supporting sustainable growth and climate resilience in North Africa. The move follows the Green Climate Fund’s approval of a $200 million equity investment into Novastar’s third fund, aimed at scaling climate solutions across Africa.
The new funding will focus on supporting Egyptian companies developing innovative solutions that strengthen climate adaptability, cut emissions and promote sustainable resource management. By channeling this capital into Egypt’s agriculture sector, Novastar aims to drive long-term environmental and economic impact while empowering local entrepreneurs.
Dr. Manal Awad, Minister of Local Development and Acting Minister of Environment, confirmed that the $50 million will specifically target climate-focused agricultural businesses. She explained that the investment will center around three key pillars: services that enhance climate adaptability and resilience; clean technologies designed to reduce carbon emissions from economic activities and innovative climate solutions for managing natural resources such as water and soil.
This strategic commitment reflects Egypt’s growing role in Africa’s climate transition and underscores the increasing importance of agriculture in achieving sustainable development goals. The sector, which employs a large portion of the country’s population, is highly vulnerable to the effects of climate change, including rising temperatures, water scarcity and soil degradation. Novastar’s investment is expected to help farmers and agri-businesses adopt modern, efficient and sustainable practices that can safeguard productivity while reducing environmental impact.
Novastar Ventures, based in Nairobi, is one of Africa’s leading venture capital firms focused on early- and growth-stage companies. Its third fund was established to expand climate-smart investment across the continent, building on previous successes in supporting high-impact businesses in sectors like financial services, healthcare, agriculture and renewable energy.
By leveraging the Green Climate Fund’s $200 million commitment, Novastar plans to mobilize additional private capital and attract investors who are aligned with Africa’s low-carbon and climate-resilient growth agenda. The fund’s objective is not only to finance individual companies but also to strengthen the broader innovation ecosystem that supports climate-smart entrepreneurship.
Through this approach, Novastar seeks to address both environmental and economic challenges simultaneously. The fund will provide financing, technical support and capacity building to startups and established businesses developing scalable climate solutions. These could include technologies that optimize water use, improve soil health, manage waste efficiently or support carbon-smart food production systems.
Novastar’s investment model emphasizes combining commercial returns with measurable social and environmental impact. The firm has consistently focused on empowering African entrepreneurs to create solutions that are both profitable and sustainable. Its work aligns with Egypt’s national climate strategy and Vision 2030, which prioritize transitioning to a green economy, strengthening resilience and attracting private investment in sustainability-driven sectors.
The $50 million allocation is expected to generate ripple effects beyond the agriculture sector by creating jobs, advancing digital innovation and supporting inclusive economic growth. It also demonstrates how public-private collaboration can accelerate climate adaptation efforts in emerging markets.
For Egypt, this commitment represents more than an injection of capital; it signals growing investor confidence in the country’s ability to lead in climate innovation. As the Green Climate Fund continues to back projects across Africa, Egypt’s participation in this initiative positions it as a regional hub for sustainable technology and agribusiness transformation.
By directing significant capital toward climate-smart agriculture, Novastar Ventures is helping Egypt strengthen its food systems, support farmers and transition toward a greener, more resilient economy. The initiative illustrates how targeted investment in innovation can play a key role in building climate resilience while creating meaningful business opportunities for the future.
