By Abbas Nazil
Circular economy solutions, agricultural technology and electric mobility are emerging as major growth opportunities for Africa’s climate technology sector, as investors increasingly focus on businesses capable of delivering measurable environmental and economic benefits.
Industry experts said the continent’s climate tech ecosystem was developing into a critical layer of economic infrastructure, attracting investment across energy, agriculture, transportation and waste management.
The sector attracted $688 million in funding during the first half of 2026, with experts predicting that waste-to-value solutions and electric mobility could drive the next phase of expansion.
The projections were discussed during a panel session on the State of Climate Tech Report at Moonshot 2026, featuring Oluwakemi Olajide, Principal at Africa Climate Ventures, and Maxime Bayen, Partner at Catalyst Fund.
Olajide said electric vehicles had attracted sustained investment and demonstrated stronger commercial growth, but stressed the need for detailed market data to help emerging climate technology sectors attract comparable levels of institutional funding.
She identified circular economy models, sustainable textiles and agricultural technology as promising areas for venture capital and growth investment, particularly where businesses can turn waste into valuable products and cleaner energy.
According to her, converting waste streams into useful resources, including clean electricity and green hydrogen, could create new economic opportunities while supporting environmental sustainability.
Bayen, however, warned that investment remained concentrated among a small number of established companies, with between 50 and 60 per cent of African climate tech funding reportedly going to a handful of late-stage businesses, including Spiro and SunKing.
He said this concentration highlighted the need to broaden investment opportunities and strengthen the pipeline of viable businesses across different climate technology segments.
Electric mobility was identified as another major growth area, particularly electric two- and three-wheelers used for commercial transportation.
Olajide said these vehicles had recorded strong commercial adoption, while Bayen explained that Africa’s electric mobility market was developing differently from those in Western countries because affordability remained a major consideration.
Unlike markets where electric passenger cars initially attracted significant attention, he said Africa’s adoption pathway was being shaped by the demand for affordable vehicles used for daily commercial transport.
The experts also highlighted growing opportunities in agriculture and water management, particularly in East Africa, where climate technology solutions are gaining traction.
They said businesses seeking to attract more investment must demonstrate reliable commercial performance rather than depend primarily on speculative valuations.
According to the panellists, investors increasingly need evidence of repeat customer usage, asset-backed collateral and sustainable unit economics that can support profitability and expansion.
Olajide stressed that companies must establish business models capable of operating successfully across different markets and regulatory environments before attempting to scale beyond their existing locations.
She cited agricultural waste processing, including facilities that convert rice husks into useful products in Kenya, as an example of how locally adapted circular economy businesses could generate value.
However, she noted that such ventures require careful operational planning and proven business models before expanding into larger markets such as Nigeria.
The experts said overcoming differences in local market conditions would be essential to scaling climate technology businesses across West and East Africa.
Their observations point to the importance of combining climate innovation with commercially viable solutions that respond to the continent’s needs, including affordable transportation, sustainable agriculture and improved waste management.
As the sector matures, the availability of reliable market data, broader access to investment and stronger business fundamentals could help more African climate technology companies grow beyond a small number of established markets and attract sustained institutional capital.
