The Future of Climate Action Companies in The Global South

Investing and supporting the right companies will play a crucial role in mitigating the impacts of global climate change.

The world is grappling with rising sea levels and declining water supplies, which are directly affecting the livelihoods of millions of people across the globe.

Africa, despite being responsible for less than 10% of global greenhouse gas emissions, is unfortunately, highly vulnerable to the effects of climate change.

For example, over 110 million people in Africa were directly affected by climate and water-related hazards in 2022, resulting in economic damages of over 8.7 billion EUR.

Editor's Note: Historical Perspective (2022-2024) - This article references data from 2022-2024. Climate impacts have intensified since publication, with 2025-2026 showing accelerated extreme weather patterns across the Global South.

Likewise, the Emergency Event Database reported approximately 5,000 fatalities, with 48 percent attributed to drought and 43 percent to flooding. However, the true toll is likely much higher due to under-reporting. Investing in climate action, and by extension, companies addressing climate change, will be crucial in addressing these repercussions in Africa.

Thankfully, investments into the local industry are already picking up.

As of end-December 2022, the African Development Bank had approved 34 projects for which it has deployed 920 million EUR equivalent in CIF resources in addition to 1.99 billion EUR equivalent of its own co-financing deployed into climate change initiatives on the continent.

Likewise, venture capital recorded a cool US$800 million deployed into African climate action startups for all of last year.

Africa's abundance of renewable energy resources, available land, and young population make it an attractive investment destination for climate action.

The opportunities in the continent are drawing investors who are determined to bring about meaningful change for global climate issues.

Another example of this has come in the form of carbon sinks on the continent

According to the United Nations Development Programme (UNDP), carbon markets are trading systems in which carbon credits are sold and bought. Of which, carbon sinks are the physical embodiments that can help accumulate and store carbon, removing it from the atmosphere, and accumulate carbon credits in the process.

Africa, with its rich mosaic of natural ecosystems, could potentially build carbon credits into the continent's next significant export. And with it, the tech solutions that can enable its fostering, maintenance, and management. All developed and deployed locally.

In the recent COP28 UN Climate Change Conference in Dubai, more deals were announced as part of the Africa Carbon Markets Initiative (ACMI), with an aim to raise US$6 billion by 2030.

At EE Digital Capital, we are at the forefront of these opportunities, seeing first hand how the right levers of capital can make lasting changes on the ground. And Africa's role in our global pursuit of sustainability, though yet fully realised, is definitely on its way.

Climate Action For The Global South