Focused on strengthening local capital participation across the continent, the partnership is designed to bridge long-standing gaps between early-stage startups and local investors, focusing on three critical areas, including pipeline sharing, market knowledge exchange, and ecosystem development. 

Together, both organisations aim to build a stronger foundation for sustainable startup growth driven by African investors and African capital.

Speaking at the signing ceremony, Yemi Keri, president of ABAN, said, “The future of Africa’s innovation economy depends on how effectively we can mobilise local capital and empower local investors. Our collaboration with Madica helps bridge the gap between angel investors and institutional capital, ensuring that more funding comes from within the continent, and that startups everywhere in Africa can access the right type of support to scale.”

Under the new MoU, ABAN and Madica Ventures will share access to curated, investment-ready startups, focusing on underserved regions that usually fall outside major investment hubs. 

Both parties will also facilitate direct learning between African angel investors and Madica’s global investment experts, a move expected to boost investor trust and improve deal quality across the board.

Emmanuel Adegboye, head of Madica, reinforced the partnership’s mission to go beyond funding:

“Early-stage founders in Africa need more than just capital. They need a community of investors who understand their context and champion their growth. We have seen firsthand that remarkable founders exist in every corner of the continent, yet too many remain disconnected from the capital and networks they need to thrive. 

“Through this collaboration with ABAN, we are closing that gap, aligning angels and institutional investors to work in sync, expand early funding pathways, and ensure that high-potential startups, wherever they are in Africa, have a real shot at scale.”

The agreement, which will remain active for two years, sets a foundation for more collaborative initiatives aimed at aligning local wealth with Africa’s rapidly growing startup scene.

Fadilah Tchoumba, CEO of ABAN, noted, “This collaboration reinforces our belief that Africans must finance Africa’s growth. By working with Madica, we are amplifying local capital participation and creating new pathways for investors to engage more meaningfully with the continent’s most promising ventures.”

Beyond the signatures and formalities, the ABAN–Madica partnership goes beyond capital mobilisation, it focuses on ownership, influence, and redefining the flow of investment power back to the continent.

In merging ABAN’s extensive angel network with Madica’s venture-building expertise, both organisations are bolstering how Africa’s startup ecosystem can evolve, prioritising sustainability, inclusivity, and local empowerment over dependency on foreign capital.

Africa’s next wave of innovation will be financed by Africans themselves.

Renewable energy startups in Africa have cumulatively raised $836.1 million to date and in recent years, the financial sector has shifted towards green investments.

Clean energy spending now surpasses fossil fuel investments at a ratio of 2:1. In 2024, global energy investment is projected to exceed $3 trillion for the first time, with $2 trillion allocated to clean energy technologies and infrastructure. This is a commendable increase from the $1.8 trillion invested in 2023, showing a 17% year-over-year growth. 

In 2023, global investment in renewable energy reached approximately $619 billion, an 8% increase from the previous year. For every dollar spent on fossil fuels, $1.7 was allocated to clean energy, showing a strong global move towards sustainability.

Projections by Bloomberg disclose that Environmental, Social, and Governance (ESG) assets are steadily growing to surpass $53 trillion by 2025, representing more than a third of the anticipated $140.5 trillion in total assets under management.

The green bond market is also well-prepared for strong growth, potentially reaching $2 trillion by 2025, with a compound annual growth rate of 25%.

Added to this, power sector investment in solar photovoltaic (PV) technology is expected to exceed $500 billion in 2024, surpassing all other generation sources combined. This momentum points to a great period in sustainable finance, driven by technological advancements, supportive government policies, and increased environmental awareness.

Green Startups in Nigeria

Nigeria is quickly becoming a top choice in the global green investment sector. Since 2019, Nigerian climate-tech startups have raised over $3.4 billion, with investors having a growing focus on sustainable development.

One good example is Earthbond, a Lagos-based startup founded in 2023 by Chidalu Onyenso. The company addresses Nigeria’s $14 billion off-grid generator market by facilitating access to solar energy through group financing and carbon accounting. 

In October 2024, Earthbond secured $200,000 in pre-seed funding from Madica Ventures, bolstering Nigeria’s green economy.

Other startups include Daystar Power, which has raised $88.5 million to expand its clean energy products and services, Rensource Energy has raised $28.6 million to expand its Power-as-a-Service (PaaS) offerings across Nigeria and West Africa, Arnergy secured $12 million to continue providing reliable solar power solutions for businesses in emerging markets and Beacon Power Services obtained $2.8 million to enhance its energy management software and analytics for utilities.

Again, Ashipa Electric raised $120,000 to develop reliable microgrids in Africa and the Caribbean Islands, Imperium Energy received seed funding of N20 million from the Development Bank of Nigeria (DBN) for its innovative low-cost clean power solutions and SunCulture provides solar-powered water pumps for irrigation, enabling smallholder farmers to access reliable and sustainable energy solutions. In 2024, SunCulture raised $27.5 million to expand its operations.

Challenges and Opportunities

Challenges

Quite alright, we have a commendable view of the green sector, but some challenges could cause limitations:

1. Funding Gaps: Africa requires approximately $277 billion annually to meet its climate goals for 2030.
2. Geopolitical Conflicts: International conflicts and trade disputes disrupt renewable energy supply chains.
3. Regulatory Instability: Inconsistent policies across regions create limitations for investors.
4. Unpredictable Market: Fluctuations in energy prices and financial markets impact the attractiveness of green investments.

Opportunities

On the contrary, the growth of green investments brings lots of opportunities:

1. Innovations in Clean Technology: Innovations in energy storage and efficiency are reducing costs and increasing adoption rates.
2. Supportive Policies: Governments worldwide are implementing fiscal incentives and environmental regulations to promote green investments.
3. Private Capital Flow: Increased private sector involvement is narrowing funding gaps for climate-tech startups.

Economic Impact of Green Investments in Nigeria

Green investments are influencing Nigeria’s economy in the following ways:

1. Economic Growth: The green economy presents an estimated $250 billion in investment opportunities in Nigeria, driving GDP growth.
2. Job Creation: Renewable energy projects can create numerous employment opportunities, from technical roles to research and development positions.
3. Energy Security: Projects like solar farms and microgrids improve electricity access, reducing reliance on diesel generators. For instance, a $750 million World Bank program aims to enhance electricity access for 17.5 million Nigerians.

Again, the Nigerian Green Bond Market Development Programme, launched in 2018, has helped in promoting climate-resilient financial instruments. This initiative laid the foundation for Nigeria’s maiden sovereign green bond in 2017, valued at $26 million.

The Global Context: Investors and Policies

Investors managing over $29 trillion in assets have called for stronger climate policies, emphasizing the necessity of fiscal incentives to support the clean energy transition. 

Nonetheless, there were issues such as a 20% drop in climate tech funding in the first half of 2024, but targets set at the COP28 summit aim to triple renewable capacity and double efficiency by 2030.

Will Green Investments Dominate?

So, the course of green investments appears to be a good one. Global economic growth is projected to increase by 3.3% by 2025 (OECD). Sustainable finance, driven by ESG-linked products and green bonds, is expected to dominate the financial sector.

In Nigeria, the collaboration of government support and private sector innovation will ensure startups in the industry scale beyond the immediate environment.

Green investments are steadily growing and this is bolstered by technological progress, policy support, and environmental consciousness, bringing a unique opportunity for Nigeria to thrive in sustainable development. 

Strategic investments and strong policies will be essential in realising this vision, making green investments a high contributor to economic growth.