A recent global report on the energy and environment startup sector has revealed that Africa lags behind in the clean-tech race. The StartupBlink Global Energy & Environment Startup Scene report, which was released in partnership with Smart City Expo World Congress, found that the sector comprises 4,529 startups across 43 countries, with a combined ecosystem value of $104.8 billion.
The report ranked only two African cities among the global top 100: Lagos, ranked 67th, and Nairobi, ranked 78th. These cities trail behind major global hubs such as San Francisco Bay, London, and Paris. Nigeria, in particular, ranks 43rd globally in this sector.
Dr. Femi Oye, Chief Executive of SMEFUNDS, reacted to the findings, stating that the figures should serve as a wake-up call to policymakers, investors, and development partners. He emphasized that African innovators are building real solutions in areas such as solar, waste management, and clean cooking but are starved of patient capital.
Oye specifically pointed to clean-cooking technology as an area where African startups could deliver both economic and public-health benefits. He noted that millions of households across the continent still rely on open fires and charcoal for daily cooking, with serious consequences for health, deforestation, and household budgets.
Oye urged corporations named in the report's "Most Active Corporations" ranking, including Equinor, Petrobras, BP, and Saudi Aramco, to extend their startup engagement programs into African markets. He also announced that SMEFUNDS is preparing to launch a dedicated financing window for African energy and environment startups, with a specific allocation for ventures focused on clean and responsible cooking.
Oye emphasized that greater attention should be paid to safety around fuel supply, food handling and storage, and the dissemination of safety information to households. He noted that technology alone will not be enough to close the gap and that financing and public awareness are crucial.
Some Nigerian technology ventures, such as Kike, a Lagos-based AI cooking assistant, have begun developing tools in this space. Oye reiterated that SMEFUNDS is exploring dedicated support for African startups working at the intersection of energy access and food safety, arguing that the sector's next phase of growth will depend on backing ventures that make everyday cooking safer as well as more efficient.
Key points
- African startups face significant risks in the global energy transition due to a financing gap.
- The continent lags behind in the clean-tech race, with only two African cities ranking among the global top 100.
- Increased investment in green innovators is crucial to bridging the gap and promoting sustainable energy solutions.
