Climate Action in Africa

Africa is facing the dire consequences of the climate crisis, but amidst the challenges lie immense possibilities for entrepreneurs. To drive sustainable development, we need passionate innovators and ambitious founders who can tackle the pressing environmental issues by building sustainable businesses. The time has come for Africa to take decisive climate action.

How African Innovators and Actors are solving for Climate

Climate technologies are being developed in diverse geographies, including Africa, to achieve net zero emissions by 2050. According to a report by Briter Bridges, over 500 startups in Africa focus on clean energy, low carbon emissions, sustainable farming, and biodiversity conservation.

Sustainable Energy (Off-grids/Mini-grids and DAC):

Off-grid solar energy solutions have provided access to solar power for over 2.5 million households, with low-income customers able to finance appliances through the PAYGo business model. Direct Air Capture (DAC) technologies also have the potential to combat the climate crisis in Africa by removing carbon from clean sources like geothermal and hydropower.

E-Mobility

The e-Mobility market in Africa has seen significant growth in the 2/3-wheeler segment. Battery swapping and charging stations are the leading services. Pay-per-use models and flexible payment models are expanding the customer base for e-mobility. The e-Mobility sector presents significant opportunities for growth and transition to cleaner transportation options.

Agri-Tech/Agriculture

Using climate-smart and satellite-based precision agriculture to optimize water and fertilizer usage and transition to sustainable farming models, startups that connect farmers with better inputs, equipment, supplies, and markets are attracting investors, enabling them to adopt sustainable practices. This is crucial for food security and reducing climate change impact on the continent.

Water Management

Smart water metering, drip irrigation systems, remote sensing & satellite imagery, water quality sensors, water harvesting technologies, and water desalination are some of the solutions that are being used to address this challenge. These technologies are helping to improve water efficiency, reduce waste, and increase access to clean water.

Carbon Finance/Carbon Market

Carbon credits hold great promise for unlocking capital on the continent, as startups are attempting to use them to subsidize solutions and provide additional benefits to users. As transparency and value for co-benefits increase, carbon revenue could become a more reliable source of funding for climate tech ventures in Africa.

Challenges for Scaling Climate Action in Africa

Unlike most startups, climate ventures require a diverse range of capital depending on their stage, aspirations, and location.

Potential solutions:

• Developing blended finance models that combine grants, debt, and equity investments.
• Creating regional climate tech funds tailored to the needs of African ventures.
• Building capacity within African startups to access and manage diverse funding sources.

What Next

The need for developed nations to fulfill their climate finance commitments to help in the equitable transition to a low-carbon and climate-resilient continent is necessary for significant progress on adaptation. The world and African climate tech players must work together to utilize this opportunity not only to mitigate climate change across Africa but also to improve the lives of every African.