In Q3 2024, African climate tech startups raised only $900,000, a stark contrast to previous successes.
Comparison with Previous Periods
African climate startups raised $325 million in the first half of 2024. The first two quarters saw funding exceed $150 million on average per quarter. However, by Q3, investor interest sharply declined.
Challenges Facing Climate Tech in Africa
Despite Africa facing significant environmental challenges, investment in climate tech remains insufficient. High solution costs and slow returns have negatively impacted funding attraction.
Global Overview and Future Outlook
Globally, climate tech funding fell to $4.8 billion in Q3 2024, marking the lowest quarterly level since 2020. However, new unicorns emerged, suggesting ongoing interest in the sector. In October, a Kenyan climate startup Octavia Carbon raised $3 million, possibly marking a positive trend for Africa.
Despite temporary setbacks, there is hope for renewed investment in climate tech considering the growing threats and need for sustainable solutions.
