Climate technology has overtaken financial technology as Africa's top venture funding sector for the first time, according to a new report by African venture capital data firm Briter Bridges. The sector attracted $1.2 billion in 2024, a 25% increase from the previous year, while fintech funding declined by 18% to $1.1 billion.
Climate Tech Surge
Briter Bridges reported that climate tech accounted for 35% of total venture funding in Africa in 2024, up from 28% in 2023. The growth was driven by investments in renewable energy, electric mobility, and carbon credit projects. Notable deals included a $300 million round for Kenyan solar company SunCulture and a $200 million investment in Nigerian electric vehicle startup MAX.
“The shift reflects the growing urgency of climate adaptation and mitigation in Africa,” said Briter Bridges analyst Yemi Ogun. “Investors are recognizing the continent's potential for clean energy and sustainable agriculture.”
Fintech Decline
Fintech, which had dominated African venture funding for years, saw its share drop to 32% in 2024 from 40% in 2023. The decline was attributed to market saturation, regulatory challenges, and a global slowdown in fintech investment. However, fintech still attracted $1.1 billion, with strong performances in payments, lending, and insurtech.
“Fintech remains a critical sector, but it is no longer the only game in town,” Ogun added. “Climate tech is emerging as a parallel engine of innovation and investment.”
Overall Funding Landscape
Total venture funding in Africa reached $3.4 billion in 2024, a 12% increase from $3.0 billion in 2023. The number of deals also rose to 650, up from 580 in the previous year. Nigeria, Kenya, South Africa, and Egypt accounted for 80% of total funding, with Nigeria leading at $1.1 billion.
The report noted that early-stage deals (seed and Series A) made up 60% of total deals, indicating a healthy pipeline of startups. Growth-stage deals (Series B and above) represented 40% of funding but 70% of total value, driven by a few large rounds.
Regional Breakdown
East Africa saw the fastest growth in climate tech funding, with Kenya attracting $400 million, driven by solar and wind projects. West Africa, led by Nigeria, saw strong interest in electric mobility and waste management. Southern Africa, particularly South Africa, attracted investments in carbon credits and green hydrogen.
“Climate tech is not just a trend; it is a necessity for Africa,” said Briter Bridges CEO Lara Taylor. “The continent is vulnerable to climate change, but it also has the resources and innovation to lead in clean technology.”
Outlook
The report predicts that climate tech will continue to grow in 2025, potentially reaching $1.5 billion, as more investors focus on environmental, social, and governance (ESG) criteria. Fintech is expected to stabilize, with innovations in digital identity and cross-border payments driving new interest.
“The venture landscape is diversifying, which is healthy for the ecosystem,” Ogun concluded. “Climate tech and fintech can coexist and even collaborate, especially in areas like green finance and carbon trading.”
