Kenya has attracted more than half of all ClimateTech funding deployed across Africa over the past decade, cementing its position as the continent's leading destination for investments in businesses developing solutions to climate change.

The country accounted for 51.3 per cent of total ClimateTech funding between 2016 and 2025, significantly ahead of Nigeria at 12.9 per cent and South Africa at 12 per cent.

This is according to a new report dubbed “The State of ClimateTech in Africa 2.0: Moving Beyond the Headline Numbers” by business intelligence and research firm Briter.

The three markets collectively captured approximately 76 per cent of funding during the period, highlighting the concentration of climate-focused capital in a handful of African economies despite growing investment activity across the continent.

Benin emerged fourth with 4.7 per cent of total funding, followed by Rwanda at 3.7 per cent, Ghana at 3.5 per cent, Egypt at 1.7 per cent, Mauritius at 1.6 per cent and Tanzania at 1.3 per cent.

The report, however, points to a significant gap between where deals are happening and where the money is going, suggesting that a wider range of African markets are attracting investor interest but struggling to secure funding at the scale seen in the leading economies.

Kenya, Nigeria and South Africa accounted for approximately 58 per cent of total ClimateTech deals over the decade, compared with their combined 76 per cent share of funding.

This suggests that although investment transactions are increasingly spreading across African markets, larger funding rounds remain concentrated in established ecosystems with companies capable of absorbing substantial capital.

Countries including Ghana, Uganda, Tanzania, Egypt, Rwanda, Tunisia and Senegal are recording increasingly visible transaction activity, although their average deal sizes remain smaller.

The report also highlights a persistent gender funding gap, with women-only founding teams receiving less than one per cent of total ClimateTech funding.

Most capital linked to women founders flows to businesses with mixed-gender founding teams, while men-only teams continue to dominate overall allocations.

The disparity is partly attributed to the concentration of large investments in capital-intensive sectors such as energy and mobility, where debt, equity and hybrid financing are more readily available.

Meanwhile, Africa's ClimateTech exit market is beginning to mature, with 206 disclosed exits recorded between 2018 and 2026.

Energy accounted for 15 of the 20 disclosed exits, driven by acquisitions involving multinational companies and established regional platforms.

The report identifies growing acquisition activity as a sign that the sector is gradually consolidating around better-capitalised businesses, creating opportunities for investors to realise returns.