Africa's Climate Tech Sector Attracts $6. 35 Billion, Led by a Handful of Startups
African Climate Tech startups raised $6. 35 billion between 2016 and 2025. A small group of companies, sectors, and countries captured most of the funding. The sector is attracting more diverse sources of capital as startups mature. African Climate Tech startups raised a combined $6. 35 billion between 2016 and 2025, but. . .
African Climate Tech startups raised $6. 35 billion between 2016 and 2025. A small group of companies, sectors, and countries captured most of the funding. The sector is attracting more diverse sources of capital as startups mature. African Climate Tech startups raised a combined $6. 35 billion between 2016 and 2025, but the rapid growth of the sector has largely benefited a small number of companies, industries, and countries, according to a report released on June 30 by research firm Briter. The report,The State of ClimateTech in Africa 2. 0: Moving Beyond the Headline Numbers, shows that Climate Tech accounted for about 22% of all startup funding raised on the continent over the past decade. Its share of annual venture funding climbed from 13% in 2016 to nearly 40% in 2025, reflecting the sector's growing importance in Africa's startup ecosystem. That expansion has been accompanied by a sharp increase in the number of startups attracting investors. Annual funding rose from $206 million across 28 startups in 2016 to more than $1. 5 billion raised by 223 companies in 2025. In total, 779 African Climate Tech startups secured funding during the decade. By 2025, Climate Tech accounted for nearly 40% of all disclosed venture capital funding in Africa, overtaking fintech and cementing its position as one of the continent's leading investment sectors. Despite that growth, investment remains highly concentrated. Between 2019 and 2025, energy startups captured about 65% of all Climate Tech funding, making the segment the clear market leader. Mobility and transportation ranked second with roughly 11%, while the remaining funding was spread across a wide range of smaller sectors. A handful of startups dominate investmentFunding is also concentrated among a relatively small number of companies. According to the report, the 20 largest African Climate Tech startups have attracted 60% of all funding raised by the sector since 2016. Energy companies dominate that group, including Sun King, d. light, CrossBoundary Energy, Zola Electric, Bboxx, SolarAfrica, BURN Manufacturing, Lumos, and Husk Power Systems. Outside the energy sector, Spiro in electric mobility and Twiga Foods in food systems stand out among the largest fundraisers. M-KOPA also ranks in the top 20, reflecting its evolution from an energy access company into a broader platform that combines digital financial services with clean energy solutions. The report estimates that climate mitigation technologies accounted for about 84% of total Climate Tech funding, compared with 16% for adaptation-focused businesses. Geographically, Kenya dominated the market, attracting 51. 3% of all Climate Tech funding raised in Africa between 2016 and 2025. Nigeria followed with 12. 9%, while South Africa accounted for 12%. Together, the three countries captured more than 76% of total investment. The report also points to a more diversified funding landscape. Venture capital remains the most active source of investment by number of transactions, but specialized debt providers, structured finance firms, development finance institutions, banks, and other institutional investors are playing a growing role as startups scale. Donors, grant providers, foundations, and non-governmental organizations also remain important sources of financing, particularly for early-stage companies focused on climate adaptation or businesses that have not yet reached commercial maturity. While equity financing and grants still account for most Climate Tech transactions, debt and hybrid financing are becoming increasingly significant. In 2025, debt and hybrid instruments represented nearly half of the total value of Climate Tech funding in Africa, reflecting the growing involvement of development finance institutions, banks, and institutional investors providing larger, more structured financing to mature companies. Walid Kéfi