Africa: Jica Invests $10m in Novastar’s Africa People + Planet Fund

TLDR

The Japan International Cooperation Agency (JICA) has committed $10 million to Novastar Ventures’ Africa People + Planet Fund III
That marks its first investment as a limited partner in an African venture capital vehicle
The fund, also known as the Africa People and Planet Start-up Investing Project, supports early-stage companies that deliver social impact and climate-focused solutions

The Japan International Cooperation Agency (JICA) has committed $10 million to Novastar Ventures’ Africa People + Planet Fund III, marking its first investment as a limited partner in an African venture capital vehicle. The agreement was signed on August 28.

The fund, also known as the Africa People and Planet Start-up Investing Project, supports early-stage companies that deliver social impact and climate-focused solutions. It is supported by British International Investment and other development finance institutions, alongside private sector players, including Japanese corporates.

Fund III targets startups that address inequality, unemployment, and environmental degradation, with a focus on sustainable enterprise models and scalable impact across Africa. JICA’s involvement strengthens the pool of institutional backers and provides new links between African ventures and Japanese partners.

The investment aligns with the United Nations’ Sustainable Development Goals and underscores the rising global interest in Africa’s startup ecosystem as a driver of inclusive growth.

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Key Takeaways

Africa’s venture capital market has faced headwinds in 2024-25, with total funding dropping sharply from the $6 billion peak seen in 2022. Yet investors continue to back funds with strong impact and sustainability theses. Novastar, with a track record in agritech, healthtech, renewable energy, and financial inclusion, is among a handful of Africa-focused managers able to attract capital from global DFIs and corporates. JICA’s entry is significant, reflecting Japan’s growing role in Africa’s development finance, complementing initiatives like the Tokyo International Conference on African Development (TICAD). By combining institutional capital with corporate expertise, the fund is positioned to offer African startups not only financial backing but also access to advanced technology and international markets. This model fits within a broader global trend of blended finance, where public and private actors share risk to accelerate investment in underserved regions. If successful, Fund III could set a precedent for more Asia-Africa VC partnerships.

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