Africa’s climate tech sector needs winners to justify recent funding jump
- DFIs have become the primary funding source for African VC firms, influencing the VC landscape.
- Climate tech funding in Africa reached $1.04 billion in 2023, marking a 9% increase from the previous year.
- The high upfront costs of climate tech solutions pose barriers to scaling in Africa.
While the influx of funding into Africa's climate tech sector is promising, it is essential to ensure that this investment translates into viable, scalable solutions that address the continent's unique challenges. The absence of clear winners in the sector raises concerns about the effectiveness of current strategies and the need for innovative approaches to unlock the full potential of climate technology in Africa.
