In 2020, quite a bit of funding was invested in startups around Africa. If you guessed that most of that went to fintech startups, that wouldn’t be a difficult guess. One surprising bit of data was that in 2020, clean technology was the second most popular destination for funding.
31% of the $2.4 billion that was invested in Africa in 2020 went to cleantech companies. Cleantech’s popularity as an investment destination has continued to grow in 2021, with Nigeria’s DayStar Power raising $38 million in a Series B funding round.
The Ugandan startup, gnuGrid also raised a US$250,000 funding round as it works to scale its solution. Yet another cleantech startup, SunCulture has now received $11 million in funding to expand solar irrigation in Sub-Saharan Africa.
The investment was led by SunFunder and a group of lenders comprising Triodos Investment Management, Nordic Development Fund, AlphaMundi and the AfDB’s FEI OGEF managed by Lion’s Head.
What’s driving Cleantech’s popularity? On one level, the possibility that Africa’s power problems can be solved by clean technology. Secondly, solar power at some scale could be a truly cheaper alternative to fossil fuels.