Climate technology has emerged as Africa’s leading venture funding sector, surpassing fintech, which has dominated the continent’s investment landscape for several years.
According to a report released on Tuesday by London-based research firm Briter, climate tech accounted for less than a quarter of the total venture capital invested in Africa between 2016 and 2025. However, the sector’s influence on the funding ecosystem has grown significantly over the period.
The report noted that climate tech’s contribution became particularly significant in 2025, when the sector alone attracted 40 per cent of total venture funding, equivalent to approximately $1.5 billion. This marks a substantial increase from 2016, when climate tech accounted for just 13 per cent, or $206 million, of venture investments.
The report, titled *“The State of ClimateTech in Africa 2.0: Moving Beyond the Headline Numbers,”* stated that this growth has been accompanied by a rapid increase in both the number of funded companies and investment deals.
Research conducted by Briter in collaboration with Catalyst Fund, BFA Global, FSD Africa, and Africa: The Big Deal found that ClimateTech companies raised approximately $6.35 billion across 779 companies between 2016 and 2025.
The study also highlighted Nigeria’s growing position within Africa’s climate technology ecosystem. According to the report, Nigeria is steadily building a reputation as a climate solutions hub and ranks second only to Kenya on the continent. Between 2019 and 2025, Nigeria attracted 12.9 per cent of Africa’s total climate tech investment.
Despite Nigeria’s progress, Kenya remains the continent’s leading climate tech market, accounting for more than half of the investment pool among Africa’s three largest markets, which also include South Africa. The report suggests that Nigeria still has significant ground to cover if it hopes to emerge as Africa’s leading climate tech destination in the coming years.
Nigeria, however, continues to maintain its position as Africa’s fintech leader. The country’s fintech industry currently generates more than $14 billion in revenue and has recorded a compound annual growth rate of 31.4 per cent. This success has been driven by a prolonged payments boom that has produced unicorn companies such as Flutterwave, OPay, and Moniepoint, all of which have achieved valuations exceeding $1 billion.
Nevertheless, the report’s focus on climate technology as the latest area of interest for offshore investors suggests that the sector could eventually become the dominant force within Africa’s broader technology ecosystem, provided the current pace of investment continues.
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