(3 Minutes Read)
A few companies are showing interest in investing in climate technology to replace fossil fuel usage, which is the mainstay in Sub-Saharan Africa, focusing more on West and Central Africa.
Climate technology, where investors shy away from putting their money, is getting new traction in Africa. The continent is now getting funds for start-ups that would eventually enable the region’s electrification and address carbon emissions. Venture capital and private equity firms are increasingly funding climate-tech startups. The funding for climate startups has risen by more than USD 3.4 billion since 2019.
A few companies are showing interest in investing in climate technology to replace fossil fuel usage, which is the mainstay in Sub-Saharan Africa, focusing more on West and Central Africa. The investments that are flowing into the continent are inadequate as studies show that Africa requires USD 277 billion annually to meet its climate goals for 2030. To unlock financing, African countries need to address risks like currency instability which deters investors. Investors also should look at climate-related industry sectors like flood protection, disaster management, and heat management, and use diverse funding methods.
The investment numbers for the climate tech sector — which includes businesses in renewable energy, carbon removal, land restoration, and water and waste management — are compelling. Last year, climate tech startups on the continent raised USD 1.04 billion, a 9% increase from the previous year and triple what they raised in 2019.
Read Also;
https://trendsnafrica.com/climate-change-and-food-shortages-contribute-to-global-unrest-un-chief/
The money raised by climate tech startups last year was more than a third of all funds raised by startups in Africa in 2023, placing climate tech second to fintech, a more mature sector.
