Investment in African Climate Tech Startups Grows, Yet Funding Gap Persists
Private sector investment in African climate technology is on the rise, with over $3.4 billion raised since 2019, but the continent still faces a significant funding shortfall to meet its 2030 climate goals.
- Climate tech startups in Africa have seen increased funding, raising $1.04 billion in the last year alone, a 9% increase from the previous year.
- Despite the growth, Africa requires $277 billion annually to achieve its climate objectives by 2030, highlighting a substantial funding gap.
- Experts suggest that addressing issues like currency instability and expanding investment into diverse climate sectors could help bridge the funding shortfall.
- Venture capital plays a crucial role, providing risk capital to startups in sectors such as renewable energy, waste management, and climate adaptation.
- Private sector financing, although growing, still trails behind public funding, accounting for only 14% of Africa's climate finance from 2019 to 2020.
Financial Post 