Africa is emerging as a global leader in climate tech, harnessing innovation to address environmental challenges and create sustainable solutions. By September 2024, African climate tech startups had raised an impressive $413.9 million, making up a third of all startup funding on the continent and overtaking fintech as the most attractive sector for investors. With total funding surpassing $3.4 billion since 2019, the sector’s growth is a testament to the continent’s commitment to tackling climate change while solving everyday problems.
The numbers illustrate the exponential growth of climate tech in Africa. In 2019, the sector attracted $340 million, and by 2023, this figure had soared to $1.1 billion. Major deals highlight this momentum: Kenya’s D.Light secured $176 million, Benin’s e-mobility company Spiro raised $50 million, and Ghana’s solar energy company PEG Africa was acquired by UK-based Bboxx in a $200 million deal, creating one of Africa’s fastest-growing clean energy firms with 3.5 million customers across 10 countries.
Investors are pouring resources into startups that address critical areas such as clean energy, electric mobility, and sustainable agriculture. The International Finance Corporation (IFC), for instance, invested $5 million in the Equator Africa Fund I, which focuses exclusively on climate tech startups. Other notable contributions include FinDev Canada’s $13 million into the Energy Entrepreneurs Growth Fund and Persistent Energy’s $10 million to build green businesses across Africa.
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African climate tech startups are leveraging cutting-edge technology to drive change and foster sustainability. These companies span a wide range of sectors:
Electric Vehicles and Environmentally Friendly Transport
Roam (formerly Opibus), based in Kenya, is revolutionizing electric mobility by manufacturing electric motorcycles and buses designed for Africa’s rugged terrain. In 2023, the company raised $7.5 million to scale production, creating affordable and durable vehicles that reduce emissions while creating local jobs.
Spiro, also headquartered in Kenya, addresses one of Africa’s biggest e-mobility challenges: unreliable charging infrastructure. By implementing innovative battery-swapping stations, Spiro ensures that electric motorcycle users can quickly replace depleted batteries, promoting the adoption of sustainable transport solutions.
Climate-Smart Agriculture
Tolbi, a Senegalese startup, is transforming agriculture with IoT-powered precision irrigation systems that optimize water use and boost crop yields. Founded in 2022, the company supports farmers in arid regions, enhancing resource efficiency and combating food insecurity.
Apollo Agriculture, operating in Kenya, provides bundled services like climate-resilient agronomic advice, credit, insurance, and farm inputs. Leveraging machine learning, Apollo tailors recommendations to farmers’ specific needs, helping smallholders adapt to climate change and increase productivity. The company raised $40 million in 2023 and another $10 million in 2024 to expand its impact.
Climate Action and Carbon Credits
Octavia Carbon, headquartered in Kenya, is Africa’s first provider of direct air capture (DAC) solutions. By extracting carbon dioxide from the atmosphere and selling it as carbon credits, the company positions Africa as a key player in the global carbon market.
Sand to Green, based in Morocco, employs agroforestry and solar-powered desalination to transform desert areas into productive farmland. This innovative approach addresses desertification and food security, turning barren lands into thriving agricultural hubs.
Waste RecyclingScrapays, a Nigerian startup, operates a digital platform connecting waste producers, collectors, and recyclers. By ensuring efficient waste management, the platform reduces greenhouse gas emissions and promotes a circular economy.
Kubik, active in Kenya and Ethiopia, turns hard-to-recycle plastic waste into affordable, low-carbon building materials. With its technology producing materials that are 40% cheaper and emit five times less carbon than cement alternatives, Kubik is addressing Africa’s waste and housing challenges while driving sustainable building practices.
Transformative Impact
The investment boom in climate tech is changing lives across Africa. Clean energy startups like Wetility in South Africa, which raised $48 million, are helping homes and businesses adopt solar power and manage energy more efficiently. In Rwanda, Ampersand is collaborating with Chinese firm BYD to produce 40,000 electric motorcycles by 2026, offering cleaner air and cost-effective transport solutions.
The ripple effects extend to rural areas. Farmers now have access to solar-powered irrigation systems, and homes previously without electricity can run essential appliances. Electric vehicles reduce reliance on expensive fuel, while innovative startups like Kubik address plastic waste by turning it into valuable construction materials.
Challenges and Opportunities
Despite these successes, significant gaps remain. Africa needs $277 billion annually to meet its climate goals by 2030 but currently attracts only $30 billion per year. Private sector contributions accounted for just 14% of climate funding in Africa between 2019 and 2020, compared to 39% in East Asia and 49% in Latin America.
Investors have focused largely on familiar sectors like solar and wind power, leaving out crucial areas such as flood protection and heat management. However, diversification is underway. In the first half of 2024, logistics and transport attracted $215 million (29% of total funding), energy and water secured $132 million (18%), and agriculture and climate fintech solutions raised $68 million and $30 million, respectively.
The future of Africa’s climate tech sector looks promising, with key events in 2025 set to drive further growth:
Africa Climate Tech & Investment Summit (February 12–13, 2025, Nairobi): This summit will spotlight investment opportunities in climate tech, bringing together innovators, investors, and policymakers.
Africa Tech Summit (2025, Nairobi): Incorporating the Climate Tech & Investment Summit, this event will explore the intersection of technology and sustainability.
Climate Action Window: A 2025 call for proposals focusing on mobilizing resources for climate action in Africa, offering opportunities for startups to secure funding and scale their solutions.
Africa’s climate tech industry is not just about addressing environmental challenges—it’s about unlocking economic opportunities, improving livelihoods, and creating a sustainable future. The success of companies like Bboxx, which serves millions of customers, underscores the potential of scalable solutions.
For investors, Africa presents a unique opportunity to achieve profitability while driving meaningful change. With increasing investment and innovation, the continent is poised to lead global efforts in climate action. By bridging the funding gap and exploring untapped sectors, Africa’s climate tech startups will continue to shape a greener, more sustainable world.
