Climate tech, the field of technologies and solutions that are increasingly adapted to tackle the climate crisis, has emerged as Africa’s top venture funding sector, confining fintech, which has dominated the scene for years, to the back seat.

The sector accounted for less than a quarter of the aggregate venture capital that flowed into Africa in the nine years to 2025, according to a report released Tuesday by London-based research house Briter.

Climate tech’s role in venture funding became particularly pronounced in 2025, when it alone contributed 40 per cent, or $1.5 billion, compared with other years in the near-decade period under review, the study said. That was up from 13 per cent or $206 million in 2016.

“This growth has been accompanied by a rapid expansion in the number of funded companies and deals,” the report titled “The State of ClimateTech in Africa 2.0: Moving Beyond the Headline Numbers,” stated.

“Between 2016 and 2025, ClimateTech companies raised approximately $6.35 billion across 779 companies,” the research, conducted by Briter, conducted along with Catalyst Fund, BFA Global, FSD Africa and Africa: The Big Deal, added.

Nigeria’s growing profile

The report indicated that Nigeria, Africa’s largest nation by population, is quietly building a reputation as a climate-solution powerhouse, second only to Kenya. It attracted 12.9 per cent of the continent’s total investment between 2019 and 2025.

That said, Kenya, which tops the group of the three largest markets, which also includes South Africa, took more than half of the pool. It implies Nigeria needs to cover a vast swathe of ground within the ecosystem in the years ahead to stand a chance of leading Africa.

The country remains the fintech capital of Africa for years, with fintech revenue currently standing above $14 billion at a compounded annual growth rate of 31.4 per cent. The prestige has ridden a prolonged payments-led boom that has produced unicorns like Flutterwave, OPay and Moniepoint, with valuations above $1 billion.

Nevertheless, the report’s emphasis on climate tech as the newest sweetheart of offshore investors means that sector may end up as the leader of the broader tech industry in a matter of years, provided the current funding tempo doesn’t slow.

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It highlighted areas such as logistics, farmer-to-market links, and post-harvest loss reduction as bright spots where Nigeria can leverage its potential in climate tech.

A case in point is Lagos-based Winich Farms and a generation of new platforms, which it said have drawn inspiration from Twiga Foods, a mobile-enabled B2B supply platform operating from Kenya.

Winich and those others, the research said, are forging ahead where Twiga faced difficulties in its early days, as they are now incorporating market access, embedded finance and logistics, helping them avert costs that otherwise could have gone into building physical infrastructure. Walking that path has also cleared the hurdle for Winich Farm and the rest to link farmers up with off-takers, “rather than assuming demand will follow supply,” it noted.

The collaboration, announced following a meeting in Abuja between Kingsley Udeh, Minister of Innovation, Science and Technology, and Leo Stan Ekeh, Chairman of Zinox Group, will focus on strengthening innovation, digital inclusion, research commercialisation and youth-led enterprise development through public-private collaboration.

The ministry said the initiative underscores the Federal Government’s strategy of working more closely with indigenous technology companies to build local capacity, accelerate technology adoption and position Nigeria as a knowledge-driven economy.

Speaking after the meeting, Udeh said strategic partnerships between government and the private sector are critical to unlocking Nigeria’s technological potential, creating sustainable employment opportunities for young people and enhancing the country’s competitiveness in the global digital economy.

Minister to Zinox: Govt-private sector partnership critical to unlocking Nigeria’s tech

According to the minister, the ministry is exploring collaboration with Zinox under its Youth and Students Innovation (YSI) initiative, a flagship programme designed to equip young Nigerians with digital skills, mentorship and innovation support to become entrepreneurs, innovators and job creators.

He said the programme aims to help young innovators transform promising ideas into commercially viable businesses that contribute to economic growth and national productivity.

Udeh described Zinox Group as one of Nigeria’s leading indigenous technology companies, commending the organisation for its longstanding contribution to the country’s ICT sector and its continued investment in locally developed technology solutions.

He noted that partnerships with established Nigerian technology firms would strengthen the country’s innovation ecosystem, expand digital inclusion and accelerate the commercialisation of research outputs into products and services capable of addressing national development challenges.

According to the minister, Nigeria’s youthful population remains one of its greatest strategic assets, stressing that with the right investment, mentorship and access to opportunities, young innovators can develop globally competitive solutions to local challenges.

He reaffirmed the ministry’s commitment to creating an enabling environment that promotes scientific research, technological advancement, indigenous innovation and the commercialisation of research outcomes in line with President Bola Tinubu’s Renewed Hope Agenda.

“The meeting,” Udeh added, “reflects the shared commitment of the Federal Government and leading indigenous technology companies to accelerate Nigeria’s digital transformation through innovation, technological advancement, indigenous capacity building and strategic partnerships that will strengthen economic diversification and national productivity.”

Responding, Ekeh welcomed the proposed collaboration, describing the ministry’s reforms and the Youth and Students Innovation initiative as timely interventions capable of nurturing Nigeria’s next generation of innovators, technology entrepreneurs and digital leaders.

He said sustained investment in young people would deliver long-term economic benefits by unlocking their creativity, talent and entrepreneurial potential.

According to Ekeh, Nigeria’s future depends on deliberately identifying, nurturing and empowering its young innovators to develop solutions that can compete in regional and global markets.

He reaffirmed Zinox Group’s readiness to partner with the Federal Government in advancing digital literacy, strengthening indigenous technology development, supporting innovation-driven enterprises and implementing programmes that empower Nigerian youths while contributing to the country’s socio-economic transformation.

The proposed partnership comes as the Federal Government intensifies efforts to leverage indigenous technology companies as strategic partners in building a resilient innovation ecosystem, reducing reliance on imported technologies and accelerating Nigeria’s transition to a digitally enabled economy.