Climate tech is now leading the way in Africa's venture funding. This sector focuses on technologies that help solve the climate crisis. It has pushed fintech, which has been dominant for years, to the sidelines.
According to a report released on Tuesday by Briter, a research firm in London, climate tech made up less than a quarter of the total venture capital in Africa from 2016 to 2025. The report highlights a significant shift in funding trends.
In 2025, climate tech alone brought in 40 percent of the total funding, which is about $1.5 billion. This is a big increase from 13 percent, or $206 million, in 2016. The report is titled “The State of ClimateTech in Africa 2.0: Moving Beyond the Headline Numbers.”
The report says, "This growth has been accompanied by a rapid expansion in the number of funded companies and deals." Between 2016 and 2025, climate tech companies raised roughly $6.35 billion across 779 companies, the research conducted by Briter, along with Catalyst Fund, BFA Global, FSD Africa, and Africa: The Big Deal, noted.
Nigeria, Africa’s most populous country, is becoming known for its climate solutions. It ranks second after Kenya for investments in this area, securing 12.9 percent of total investment from 2019 to 2025. However, Kenya, the leader among the three main markets, which also includes South Africa, received more than half of the total funding.
This means Nigeria has a long way to go in the climate tech space if it wants to catch up. Despite this, Nigeria remains the fintech hub of Africa, with fintech revenue over $14 billion and a growth rate of 31.4 percent. This success comes from a boom in payments, leading to the rise of unicorns like Flutterwave, OPay, and Moniepoint, all valued over $1 billion.
The report suggests that climate tech could become the favorite of international investors. If funding continues at this rate, it may soon lead the entire tech industry. The report points out opportunities in areas like logistics, farmer-to-market connections, and reducing post-harvest losses.
An example is Winich Farms in Lagos. This company and others are taking cues from Twiga Foods, a mobile-enabled business platform from Kenya. Winich and its peers are moving forward by tackling challenges that Twiga faced early on.
They are incorporating market access, finance, and logistics to cut costs that would have gone into setting up physical structures. This approach has helped Winich Farms and others connect farmers with buyers, “rather than assuming demand will follow supply,” the report said.
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