Climate tech rises US$ 1.5bln in fight against climate change in Africa– report

Financial technologies had taken the lead for over a decade before the continent realised the gravity of the climate crisis and its impacts on communities

KAMPALA, September 3, 2026 — Climate technologies and solutions that are increasingly adopted to tackle the climate crisis have emerged as Africa’s top venture funding sector garnering well over US$ 1.5 billion.

Financial technologies had taken the lead for over a decade before the continent realised the gravity of the climate crisis and its impacts on communities.

According to a London-based research group, House Briter, Climate Tech accounted for more than a quarter of the aggregate venture capital flowing into Africa in the nine years to 2026.

The role played by Climate tech in venture funding was particularly pronounced in 2025 after it contributed over 40 percent, amounting to US$ 1.5 billion compared to US$ 206 million in 2016.

The report titled “The State of ClimateTech in Africa, Moving Beyond the Headline Numbers” states that this growth has been accompanied by a rapid expansion in the number of funded companies and deals contributing to reduction in biofuels among other solutions.

Accordingly, between 2016 and 2025, ClimateTech companies raised more than US$ 6.35 billion across at least 779 ventures.

It also points out Kenya as Africa’s growing ClimateTech nation building a reputation as a climate-solution powerhouse attracting approximately 52 percent of the continent’s total investment followed by South Africa claiming 29 percent while Nigeria which attracted approximately 12.9 percent between 2019 – 2025 comes in the third slot.

Kenya’s ClimateTech has provided a platform to inform offshore investors about the progressive impact of the sector that may end up as the leader of the broader tech industry shortly if the current funding trajectory does not slow down.

It highlighted areas such as logistics, farmer-market linkages and post-harvest loss reduction as spots where the country may leverage its potential in climate tech.

https://thecooperator.news/africas-carbon-markets-gain-momentum-as-climate-finance-opportunities-expand/

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