….Climate tech claims 32%

By Juliet Umeh 

Africa’s start-up ecosys-tem continues to attract global attention, with 2024 marking another dynamic year in funding trends.

According to the data from Africa: The Big Deal, the financial technology, Fintech, solidified its position as the continent’s leading sector, accounting for nearly half, 47 per cent of all start-up funding, while Climate Tech emerged as a critical focus, claiming 32 per cent of investments across various sectors.

Fintech: The unstoppable force

The fintech sector raised over $1 billion in 2024, a significant jump from 42 per cent of funding in 2023 to 47 per cent last year – its highest share since 2021. Heavy hitters like Moniepoint, Tyme, MNT-Halan, and M-Kopa dominated, with fintech companies securing four of the top 10 fundraising rounds. Notably, a strong second half of the year propelled the sector back to the top after a modest first half that saw fintech contributing just 22 per cent of the total funding raised.

Climate tech: A cross-sectoral powerhouse

Climate Tech investments accounted for 32 per cent of total funding in 2024, slightly down from 36 per cent in 2023. The decline was primarily attributed to a 42 per cent drop in funding for the energy sector, which historically dominates Climate Tech investments. Despite this, non-energy Climate Tech funding remained stable, demonstrating resilience and potential for growth in the coming years.

Other Sectors: Bright spots and declines

Energy: Maintained its position as the second-largest sector with $440 million in funding, led by companies like d.light and Sun King, despite a significant YoY drop, -42 percent.

Logistics & Transportation: The standout performer, with funding increasing by 6 per cent YoY to $288 million. Key players, Moove, Basigo, and Spiro, collectively attracted 75 per cent of the sector’s investments.

Deeptech and Services: Among the few sectors to experience growth, bolstered by innovative solutions like Morocco-born Nuitée’s Series A funding.

Overall, the top three sectors which include fintech, energy, and logistics & transportation captured 80 per cent of all funding, highlighting their dominance in Africa’s start-up ecosystem.

Global and regional energy

leaders and stakeholders are set to converge in Lagos to forge a path towards West Africa’s clean energy transition at the 6th West Africa LPG Expo 2025.

The company said the two-day event, scheduled for March in Lagos, solidifies its reputation as the foremost platform for advancing liquefied petroleum gas, LPG, as a transformative energy solution for the region.

Director, LPG Expo, Jeffrey Leung, said:  “Building on the success of the past two editions of the event which attracted over 3,000 industry professionals and more than 80 top speakers, the 6th West Africa LPG Expo 2025 will be the largest.

‘It will feature the region’s largest international LPG exhibition, comprising innovations from over 100 local and international exhibitors. 

“The event will comprise Influential Industry conference sessions, featuring over 50 expert speakers from government, global investors, consultants and key LPG players in the region – while offering industrial networking opportunities.

“Supported by the Nigeria Liquefied and Compressed Gas Association, NLCGA, Nigerian Gas Association and World Liquid Gas Association based in Paris, the exhibition is open to all energy professionals, stakeholders, and clean energy advocates,” Leung said.

Underscoring Nigeria’s Leadership role in Clean Energy transition, he noted: “As Africa’s second-largest LPG producer, Nigeria is at the forefront of integrating LPG into its energy framework. “Through the Nigerian Energy Transition Plan, targeting net-zero emissions by 2060, significant investments have been made in LPG infrastructure, enhancing production, reducing imports, and expanding access.

“Neighbouring countries such as Ghana, Senegal, and Ivory Coast are also leveraging LPG to meet Africa’s 2030 clean cooking goals and reduce biomass dependency,” he noted.

Also running alongside the LPG Expo, the 2nd CNG Africa, Nigeria 2025, will emphasize Nigeria’s Presidential Compressed Natural Gas Initiative, Pi-CNG, aiming to grow the number of Natural Gas Vehicles, NGVs to 1 million by 2026. This initiative showcases the economic, environmental, and energy independence benefits of compressed natural gas, CNG adoption.