Shell and 500 Global Launch Climate Startup Hub in Africa

African startups solving climate challenges just got a major boost from an unexpected partnership between a foundation and a venture capital firm.

Shell Foundation and 500 Global launched the Sustainable Innovation Seed Accelerator in August 2024, targeting early-stage companies working on clean energy, sustainable agriculture, and green mobility across Africa. The program addresses a crucial problem: local accelerators often run short programs with limited funding, while global investors typically avoid seed-stage climate companies in emerging markets.

The gap leaves promising startups stranded between small grants and serious venture capital. This new accelerator extends that runway to 12 months, giving founders time to prove their business models work.

Startups in Nairobi typically raise around $150,000 for 6% equity through the program. Shell Foundation adds grant funding between $15,000 and $50,000 for early pilots, without taking any equity stake. The money covers market validation, product development, and fundraising preparation.

Carrie Liauw, executive director at 500 Global, explains that most accelerators in emerging markets operate within a single country. "Startups often have limited exposure to global investors, customers, and operating experience beyond their home market," she says. This program connects them to international networks instead.

The approach differs from typical impact investing. Shell Foundation's Juliette Keeley notes they focus on whether companies serve their target customers and track income and gender outcomes, but founders keep decision-making power. "We do not direct company strategy," Keeley emphasizes.

The program works alongside existing ecosystem players in Kenya like Baobab Network, iHub, and Savannah Fund rather than replacing them. It's delivered in partnership with UNDP's timbuktoo Africa initiative to strengthen local capabilities while providing global exposure.

The timing matters because Africa, Latin America, and much of Asia will account for most future energy use and city building. These regions now produce about 63% of global emissions as manufacturing has shifted from the North. The challenge isn't cutting consumption but expanding it without locking in carbon-heavy systems.

The Ripple Effect

This accelerator model could reshape how climate solutions scale in emerging markets. By combining grant funding with venture capital and extending support to 12 months, it gives startups breathing room to refine their models before facing the harsh realities of commercial fundraising.

The program also addresses a critical equity issue. Countries experiencing rapid industrialization need homegrown solutions that fit their specific contexts, not just imported Western technology. Supporting local entrepreneurs means climate innovation can happen where it's needed most.

Climate tech founders across Africa now have a clearer path from idea to scale, one that doesn't force them to choose between impact and investment.