The green revolution in tech startup funding continues on the continent, with a new report revealing that Africa's climate tech startups have surpassed their fintech counterparts, securing nearly half of all funding accumulated so far in 2024.
Startup funding is favoring African climate tech startups, with companies in this sector attracting 45% of the total funding raised by tech startups in Africa to date in 2024.
According to an analysis by startup funding data tracker Africa: The Big Deal , the sector has garnered US$325 million so far in 2024. Although this is significant in percentage terms, a major downturn in overall funding for African startups over the past two years has impacted the total funding for the sector, following years of growth.
Over the past five years, Climate Tech funding has experienced significant growth, with investments rising from $340 million in 2019 to $344 million in 2020, $613 million in 2021, $959 million in 2022, and reaching $1.1 billion in 2023," the report outlined.
"With Climate Techs share of total investments reaching 36% in 2023, the sector appears poised for continued growth in 2024. However, surpassing last years $1.1 billion investment in Climate Tech seems unlikely at this point," the analysis further noted.
