BFA Global and FSD Africa have deployed $273,000 in follow-on funding to four East African climate startups targeting a critical but often underfunded stage of venture growth.
The funding supports alumni of the Triggering Exponential Climate Action (TECA) programme, a venture-building initiative designed to move startups from early concept to investment readiness. Beyond capital, the selected ventures will receive technical support spanning operational strategy, business model refinement, and investor preparedness.
The four startups operate in sectors central to Africa’s climate and economic resilience: clean energy, waste-to-energy conversion, cold chain logistics, and sustainable food systems.
Among them, Africa Renewables Katalyst (ARK) is building infrastructure to connect local renewable energy developers to global certificate markets, unlocking access to international climate finance. Plas-tech Energies is tackling plastic pollution by converting waste into clean cooking gas—offering a safer and more affordable alternative to charcoal and kerosene.
In the food systems space, Samaking is deploying solar-powered cold chain infrastructure to reduce post-harvest losses, particularly benefiting small-scale traders who lack reliable storage. Similarly, Sunwave is providing solar-powered ice production and cold storage solutions for fishers, addressing a major source of income leakage in coastal economies.
The significance of this funding lies less in its size and more in its timing. These startups sit in what investors often describe as the “missing middle” having validated their models but not yet large enough to attract significant commercial capital.
Recent data underscores the challenge. Early-stage climate deals declined by roughly 20% in 2025, as investors shifted toward fewer, larger transactions. This has widened the funding gap for startups attempting to scale proven solutions, particularly in emerging markets.
According to TECA programme director Tyler Ferdinand, targeted follow-on funding at this stage can determine whether promising ventures survive long enough to become investable businesses. Mary Kashangaki similarly noted that improving capital access for small and growing businesses remains one of the continent’s most pressing structural challenges.
Since 2006, BFA Global has supported over 118 ventures across Africa, Asia, and Latin America, with portfolio companies raising more than $815 million in follow-on funding and achieving survival rates significantly above global startup averages.
In a funding environment increasingly skewed toward scale-stage companies, initiatives like this highlight a growing recognition: Africa’s climate transition will depend not just on large, well-funded players, but on early-stage innovators solving local problems with scalable, context-driven solutions.
