In recent years, Africa has seen a significant rise in investments directed towards climate technology (cleantech), marking a shift in the continent’s approach to sustainable development and environmental stewardship. This growing interest underscores a shared recognition of the urgent need to address climate change through innovative solutions tailored to Africa’s unique challenges and opportunities.
The trajectory of cleantech funding in Africa has been notably upward. In 2019, for instance, climate tech startups attracted approximately $340 million in investments. By 2023, this figure had more than tripled, reaching an impressive $1.1 billion. Collectively, since 2019, these startups have amassed over $3.4 billion, reflecting a robust and growing confidence among investors in the potential of climate-focused innovations
A Turning Point for Climate Innovation in Africa
Just a decade ago, climate tech in Africa was seen as a high-risk venture, or as experimental, and usually too dependent on donor funding. But the landscape has changed dramatically. In 2019, African climate tech startups attracted around $340 million in investments. Fast-forward to 2023, and the sector secured over $1.1 billion in funding — a triple surge sending a strong signal to the global investment community. What this means is that Africa is no longer waiting to be saved. It is investing in itself.
This momentum is not only promising, it is essential. According to United Nations Fact Sheet on Climate Change, Africa contributes only around 2% to 3% of global carbon emissions, yet it is one of the most vulnerable regions to climate change. From devastating floods in Nigeria to prolonged droughts in the Horn of Africa, the cost of inaction is no longer theoretical — it is visible, measurable, and deadly. Climate tech offers a way to build resilience, create jobs, protect ecosystems, and meet rising energy and infrastructure needs in a way that is sustainable and locally relevant.
Kenya, Nigeria, and South Africa Leading the Way
Looking at the trends, local innovation and regional leadership have driven growth of climate tech in the past decade. Kenya, often styled as Africa’s Silicon Savannah, presently leads the pack with 29 startups having raised over $100,000 each in climate tech funding. This includes game-changers like M-KOPA and BasiGo, which are reimagining solar energy and electric mobility.
Nigeria, Africa’s most populous nation and one of its largest economies, follows closely with 22 funded startups, while South Africa, long a leader in energy innovation, is home to 11. These countries are creating strong ecosystems where entrepreneurs, financiers, and policy makers work in tandem to scale up green solutions.
But the story doesn’t end there. Countries like Ghana, Rwanda, Benin, and Ethiopia are emerging as powerful contenders, hosting startups that are bringing climate innovations into underserved communities and offering scalable models for the continent.
A Diversity of Tech Portfolio in Kenya
What makes Africa’s climate tech scene especially exciting is the diversity of its innovations. These are not one-size-fits-all solutions imported from the West. They are locally designed, tailored to the realities of informal economies, erratic infrastructure, and off-grid populations.
In Benin, e-mobility startup Spiro raised $50 million to roll out electric motorbikes that reduce air pollution and fuel dependence in urban centers. In Rwanda, Ampersand partnered with Chinese battery giant BYD to locally manufacture 40,000 electric motorcycles by 2026 — a move that could slash CO₂ emissions and create thousands of jobs.
Back in Kenya, Miale Solar, an emerging leader in clean cooking solutions, piloted a standalone clean cooking innovation at Kenswed Organization in Ngong, Kajiado, which operates vocational training centers, hospitals, and schools. The project demonstrated significant reductions in cooking time and fuel costs for large-scale cooking, providing a model for expansion beyond schools into hospitals – and even households. Currently, Miale Solar seeks grant funding in the tune of $500,000 to scale up the project across schools in Kenya.
According to Stephen Adwong’a, Miale Solar’s CEO, there’s a need for increased public and private investment. “Governments and development banks must significantly scale up funding for clean cooking technologies, ensuring affordability and accessibility for low-income households,” he says. Incentives for businesses investing in clean cooking infrastructure must be introduced. Adwong’a adds that clean cooking should be fully integrated into national energy policies, climate action plans, and SDG strategies.
There is also a need for community engagement and innovation and research. According to Miale Solar’s chief executive, investment in new cooking technologies, improved stove efficiency, and alternative fuels is crucial to making clean cooking solutions more efficient, affordable, and adaptable to different regions
BasiGo is also revolutionizing public transportation by providing affordable, locally assembled electric buses. The company secured $42 million in equity and debt financing in 2023, enabling it to expand its fleet and charging infrastructure. Similarly, Wetility, based in South Africa, raised $48 million to make solar energy more accessible to homes and small businesses affected by chronic power shortages.
These startups represent a broader trend. African founders are innovating across energy, agriculture, mobility, water access, fintech, and the circular economy, all through a climate-resilient lens.
A Multi-Billion-Dollar Opportunity
What’s fueling this wave of investment? First, there’s rising awareness of the climate finance gap in Africa. The continent needs an estimated $277 billion annually to meet its 2030 climate targets, yet only about $30 billion is currently being invested each year. This shortfall has spurred action among development banks, private equity firms, and venture capitalists who now see Africa as both a climate risk and an unparalleled investment opportunity.
According to recent data, only 14% of climate finance in Africa between 2019 and 2020 came from the private sector — a stark contrast to Latin America (49%) and East Asia and the Pacific (39%). As this imbalance becomes clearer, more African investors are stepping into the space to fill the gap and build homegrown solutions with long-term value.
We’re also seeing increased interest in blended finance models, where grants and concessional loans are used to de-risk private investments. This is especially important in frontier markets where startups may lack credit histories or collateral but have high-impact potential.
The Rise of Green M&A and Strategic Acquisitions
Climate tech in Africa is also becoming attractive for mergers and acquisitions. In 2022, PEG Africa, a solar energy company based in Ghana, was acquired by UK-based Bboxx in a landmark $200 million deal. The acquisition brought together two of the most dynamic players in off-grid solar, creating a company that now serves over 3.5 million customers across 10 countries.
Such deals demonstrate that climate tech is no longer a siloed or charity-driven sector — it is part of Africa’s mainstream economic future.
Beyond Profits: Climate Tech’s Human Impact
While the financial growth is impressive, what makes African climate tech truly inspiring is its human impact. Every investment made in a clean cookstove, a solar irrigation pump, or a cold-storage facility for vaccines is an investment in lives saved, dignity restored, and futures protected.
In Ethiopia and Kenya, startups like Kubik are turning unrecyclable plastic waste into durable building materials, tackling pollution and the housing deficit at the same time. In Senegal, solar-powered water filtration systems are providing clean water to remote communities, improving health outcomes and reducing reliance on diesel generators.
These innovations are not just reducing emissions — they are rewiring economies to be more equitable, efficient, and environmentally sound.
Challenges Still Remain, though
To be sure, barriers still exist. Regulatory uncertainty, currency instability, limited local venture capital, and infrastructural gaps can hinder startup growth. Additionally, underfunded sectors like flood protection, heat management, and climate insurance remain ripe for innovation.
However, with the right mix of policy reforms, financing tools, and pan-African collaboration, these challenges can become the next frontier for opportunity.
Therefore…
Africa’s climate tech boom is more than a trend. In fact, it’s a movement. It reflects a growing confidence in African ingenuity and a clear-eyed understanding of the continent’s needs and potential. Local investors are no longer waiting on the sidelines. They are deploying capital with purpose, reshaping industries, and positioning Africa as a global leader in climate resilience. The rest of the world would do well to take note, and take part.