Novastar Ventures Invests $3.5M In Sistema.bio To Revolutionize Renewable Energy For African Farmers

Sistema.bio, a Nairobi-based renewable energy company, has secured $3.5 million in funding from Novastar Ventures as part of a $7.75 million internal round. The investment will help expand the company’s biogas technology and digital solutions across Africa, promoting renewable energy adoption and sustainability among smallholder farmers. This funding aligns with Novastar’s Africa People + Planet Fund III, which targets climate solutions and agricultural innovation to drive economic growth and environmental resilience.

Novastar Ventures, with offices in Nairobi, Lagos, and London, has a long-standing commitment to addressing fundamental challenges in Africa through early- and growth-stage investments. In 2020, the firm closed its second fund at $108 million, emphasising its dedication to supporting innovative startups in East and West Africa. The Africa People + Planet Fund, launched by Novastar, seeks to raise over $200 million for initiatives tackling climate change and advancing clean technologies.

Sistema.bio has emerged as a key player in sustainable energy solutions, leveraging biogas technology to transform animal waste into renewable energy and biofertilizer. Its solutions not only reduce greenhouse gas emissions but also lower energy costs and improve soil health, enabling smallholder farmers to enhance productivity sustainably. Operating in over 31 countries and impacting more than 100,000 farmers across sub-Saharan Africa, the company’s reach underscores its transformative impact on the agricultural sector.

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The acquisition of Inclusive Energy has further enhanced Sistema.bio’s digital capabilities, including monitoring, reporting, and verification (MRV) tools. These technologies enable remote diagnostics, usage analytics for carbon reporting, and predictive maintenance, ensuring more efficient and reliable service delivery. This integration strengthens the company’s ability to support farmers while aligning with carbon market initiatives.

“This investment strengthens our mission to empower low-resourced farmers with solutions that drive economic growth and climate resilience,” said Joyce Cacho, Board Chairman of Sistema.bio. Novastar Ventures Co-founder Steve Beck added, “Sistema.bio empowers family farmers to transform waste into renewable energy and fertilizer, unlocking productivity and resilience while reducing greenhouse gas emissions. We’re excited to partner at this growth stage.”

The partnership between Sistema.bio and Novastar Ventures highlights Africa’s growing role in global climate action and sustainable agricultural innovation. By scaling biogas technology and advancing digital solutions, this collaboration aims to improve energy access, promote sustainable farming practices, and contribute to the continent’s climate resilience goals.