African climate tech startups are growing exponentially, attracting unprecedented investment in 2024. The sector, previously overshadowed by fintech, is now at the top, capturing 45% of overall funding, an increase of $325 million . Areas like logistics, transportation, energy and water are the most prolific. Innovations such as battery changing technology exemplify the crucial impact of these startups in the continent’s ecological transition.
African climate tech startups have always been underestimated compared to other sectors such as fintech. However, 2024 marked a turning point. According to a report from The Big Dealclimate tech startups captured 45% of total investments this year, or about $325 million. This impressive performance is evidence of the sector’s rise, surpassing even investments in fintech.
The most prolific subsectors of African climate tech include logistics and transport, which attracted 29% of funding, and energy and water, which accounted for 18% of investments. These funds are being used to develop innovative technologies such as battery-swapping technology, which plays a crucial role in reducing carbon emissions.
This wave of investment is largely due to the growing interest from international investors. Venture capital funds around the world see the potential of African climate solutions to address global environmental challenges. For example, Kenyan green logistics startup Sendy recently raised significant funding to expand its operations and sustainable technologies.
The commitment to sustainability and innovative solutions is also supported by African governments and non-governmental organizations, who recognize the importance of these startups in the fight against climate change. Strategic initiatives and partnerships are being put in place to encourage the growth of this sector.
In conclusion, African climate tech startups are transforming the investment landscape on the continent. With a dramatic increase in funding and promising innovations, they are well positioned to play a key role in the global ecological transition.
