Africa’s climatetech boom hit $1.5 billion in 2025, but it’s still exclusive 🌍

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Climate technology has become one of the fastest-growing forces in African venture capital. But behind the eye-catching numbers lies a market that’s still remarkably concentrated — where funding flows mostly to a handful of companies, sectors, and countries.

Growth powered by technology ⚡

According to The State of ClimateTech in Africa 2.0, a report published by Briter Bridges alongside Catalyst Fund, FSD Africa, and BFA Global, funding for African climatetech companies rose from $206 million in 2016 to more than $1.5 billion in 2025. Over the decade, 779 tech companies raised roughly $6.35 billion combined. By 2025, climatetech reportedly accounted for nearly 40% of disclosed venture funding on the continent, up from 13% in 2016 — overtaking fintech in the process. Even so, Africa still captures only about 3-4% of global climatetech funding.

Energy leads, but innovation is spreading out 🔋

Energy has absorbed roughly 65% of climatetech funding between 2019 and 2025. Companies like Sun King, d.light, CrossBoundary Energy, Spiro, and M-KOPA show what’s possible when solar, electrification, and electric mobility technologies scale up. But deal volume tells a different story: agriculture, food systems, and circular economy ventures together account for 46% of transactions, while water, construction materials, and carbon solutions are still struggling to land the bigger checks.

A concentrated market, a funding model due for a rethink 💰

The 20 best-funded companies have captured 60% of all capital raised since 2016, and three countries — Kenya, Nigeria, and South Africa — account for 76% of the money. Early-stage funding remains the weak link: between 2019 and 2025, rounds under $500,000 stayed below 0.5% of total sector funding. Debt and hybrid instruments are gaining ground, making up nearly half of funding value in 2025. The question is no longer how much capital Africa’s climatetech sector needs — it’s which technology gets funded, at what stage, and with which instrument.

So, should the priority be funding new climatetech startups, or scaling the champions that already dominate? Tell us what you think in the comments.