🌱 2023 🌱 Climate Tech on the rise 🌱
[Guest blog] Climate tech start-ups in Africa raised $1b+ in 2023. Maelis Carraro highlights why it is critical for this trend to continue.
Previously on Africa: The Big Deal: Combined, Fintech & Energy represented 69% of all start-up funding raised in Africa last year. Quite far behind, Logistics & Transport, Healthcare, and Agri & Food completed the Top 5.
By Maelis Carraro, Managing Partner of the Catalyst Fund
Africa: The Big Deal and the Catalyst Fund - Africa's leading early stage climate tech investor and accelerator - joined forces to unveil the dynamic landscape of the climate tech sector on the continent. We didn’t just skim the surface: we delved deep, sifting through 3,000 pitch decks and over 550 deals sealed by climate tech startups in Africa. With this data, we’re pleased to share insights into the state of the climate resilience and adaptation pipeline in Africa.
With over four billion people globally vulnerable to climate change, and susceptible countries facing GDP losses of up to 64%, annual climate needs are projected to surpass $10 trillion from 2031 to 2050. Encouragingly, the climate tech sector in Africa has witnessed substantial growth, amassing over $3.4 billion in invested capital since 2019; courtesy of over 23 early-stage venture funds!
Just looking at 2023, around 1$ in 3$ invested into startups in Africa in 2023 went to climate tech startups (reaching over $1b in total). While energy and water start-ups took the lion’s share, agtech dominates the early-stage pipeline, also pointing to the need for greater innovation across diversified sector that will need to adapt to climate impacts.
The report sheds light on the need for more diversified capital for startups (grants for R&D, debt and equity), blended finance - including concessional and commercial capital -, and venture building approaches to grow the sector. It’s also a call to action: there is an imperative for more collaboration, knowledge sharing, and co-investments to spur the climate tech ecosystem across Africa. If you’re interest in learning more…
 | A guest post by
|