Africa’s technology investment story is beginning to change, with investors increasingly looking beyond fintech for opportunities in sectors addressing the continent’s biggest infrastructure, energy and productivity challenges. While fintech remains the leading destination for technology capital, growing interest in cleantech, agriculture, logistics, mobility and industrial technology is pointing to a broader investment wave.
African technology companies raised $4.1bn in combined equity and debt funding in 2025, representing a 25 per cent increase from the previous year, according to Partech. Fintech attracted $1.49bn, accounting for 37 per cent of total funding, while cleantech recorded $1.18bn, nearly twice its 2024 figure. Kemi Olajide, Principal at Africa Climate Ventures, said the next generation of major African technology companies could emerge from businesses solving problems in essential sectors such as energy, food systems, agriculture, mobility and manufacturing.
Artificial intelligence is also expected to play a major role in Africa’s next investment cycle, but Olajide cautioned investors against viewing AI alone as an investment strategy. She said the real opportunity lies in using the technology to deliver measurable business results, including lower costs, higher productivity, reduced downtime, better credit decisions and stronger customer retention. The International Monetary Fund estimates that AI could add 0.4 per cent cumulatively to sub-Saharan Africa’s GDP over 10 years under current conditions, with the potential rising to about four per cent if adoption expands across sectors and infrastructure and skills gaps are addressed.
However, Africa’s digital infrastructure remains a major hurdle. Despite being home to about 18 per cent of the world’s population, the continent has less than one per cent of global data-centre capacity, according to the GSMA. Olajide identified reliable electricity, fibre networks, last-mile connectivity, data centres and computing infrastructure as areas that require significant investment. She also expects demand for professionals in engineering, data, cybersecurity, product management and hardware maintenance to rise as technology adoption expands.
The surge in cleantech investment suggests that Africa’s technology ecosystem is already moving closer to the physical economy. Partech reported that cleantech equity funding reached $550m in 2025, up 186 per cent, with 74 equity deals recorded during the year. But beyond attracting capital, Olajide stressed the importance of ensuring African teams retain intellectual property, technical expertise and a meaningful share of the economic value created. For investors, the message is becoming clearer: Africa’s next big technology opportunities may not simply be the apps people use to move money, but the companies building the infrastructure, energy systems and productive businesses that keep the economy moving.
source: punch
