Climate tech overtakes fintech as Africa’s top venture funding sector: Report

Climate tech has emerged as the dominant sector for venture capital funding in Africa, overtaking fintech, which previously held the top position for years. This shift indicates a growing investor focus on technologies and solutions designed to combat the climate crisis across the continent.

A report released by London-based research house Briter highlights that climate tech accounted for a significant portion of venture capital flowing into Africa. In 2025 alone, the sector captured 40% of the total investment, amounting to $1.5 billion. This marks a substantial increase from 13% or $206 million in 2016, demonstrating rapid growth in both funded companies and deal volume over the past decade.

Between 2016 and 2025, climate tech companies in Africa collectively raised approximately $6.35 billion across 779 deals. The report, titled “The State of ClimateTech in Africa 2.0: Moving Beyond the Headline Numbers,” was compiled in collaboration with Catalyst Fund, BFA Global, and FSD Africa.

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This growth has been accompanied by a rapid expansion in the number of funded companies and deals.

Nigeria, Africa's most populous nation, is increasingly recognized as a hub for climate solutions, ranking second only to Kenya in attracting investment. Between 2019 and 2025, Nigeria secured 12.9% of the continent's total climate tech investment. Kenya, however, remains the leading market, capturing over half of the investment pool among the top three markets, which also include South Africa. The report suggests Nigeria has significant ground to cover to achieve leadership in the sector.

While Nigeria has long been considered the fintech capital of Africa, with a thriving ecosystem producing unicorns like Flutterwave and Moniepoint, the ascendant status of climate tech signals a potential future leadership role for the sector in Africa's broader tech industry. Bright spots for Nigeria in climate tech include logistics, farmer-to-market links, and post-harvest loss reduction. Companies like Lagos-based Winich Farms are innovating by integrating market access, embedded finance, and logistics, drawing inspiration from successful models like Kenya's Twiga Foods.

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Between 2016 and 2025, ClimateTech companies raised approximately $6.35 billion across 779 companies.