To unlock Africa’s bluetech’s growth, investor education key

• Financing of Africa’s bluetech sector is currently grappling with investor misconceptions, perceived risks, and mismatched financing models yet it could generate up to $1.5 trillion in revenue by 2050.
• African bluetech startups have secured just 1 per cent of the continent’s overall venture capital and a mere 6 per cent of climate tech investments, totaling around $230 million as of late 2025. In contrast, fintech and software ventures dominate, pulling in billions annually.
• To unlock bluetech’s growth, targeted investor education and innovative, flexible investment instruments are essential.

Africa’s vast coastlines, rich marine biodiversity, and expansive freshwater systems hold untapped promise for economic transformation. The continent’s blue economy—encompassing sustainable fisheries, aquaculture, marine biotechnology, and ocean renewable energy—could generate up to $1.5 trillion in revenue by 2050, according to projections from Briter Bridges.

Yet, this sector, often dubbed “bluetech,” remains a funding outlier. African bluetech startups have secured just 1 per cent of the continent’s overall venture capital and a mere 6 per cent of climate tech investments, totaling around $230 million as of late 2025. In contrast, fintech and software ventures dominate, pulling in billions annually.

This disparity isn’t for lack of potential but stems from investor misconceptions, perceived risks, and mismatched financing models. To unlock bluetech’s growth, targeted investor education and innovative, flexible investment instruments are essential. These tools could demystify the sector, mitigate risks, and align capital with the unique timelines of ocean-based innovations, ultimately fostering a wave of sustainable development across Africa.

The Untapped Potential of Africa’s Bluetech Sector

Africa’s blue economy is more than a niche; it holds the potential for resilient growth. With over 38,000 kilometers of coastline and the world’s second-largest freshwater reserves, the continent is primed for bluetech advancements.

The African Union (AU) estimates the current blue economy already contributes nearly $300 billion annually, supporting 49 million jobs in fisheries, tourism, and shipping. By 2030, this could swell to $405 billion, driven by sectors like coastal tourism ($100 billion) and sustainable aquaculture. Looking further ahead, the AU projects $576 billion by 2063, but bluetech-specific forecasts are even bolder, eyeing $1.5 trillion by 2050 through innovations in marine renewables and biotech.

Recent data underscores this momentum. In 2025, global interest in ocean economies has surged, with the OECD forecasting the worldwide ocean economy to triple by 2050 in a low-carbon scenario, creating 51 million jobs. Africa stands to capture a significant share, particularly in small island developing states (SIDS) like Seychelles and Mauritius, where blue resources could boost GDP by 20-30 per cent.

Initiatives such as the World Bank’s Blue Economy for Resilient Africa Program (BE4RAP), launched in 2022, aim to channel $1 billion into infrastructure and tech, emphasizing how bluetech can address food security for Africa’s projected 2.5 billion people by 2050.

Despite this, investor uptake lags. While African startups raised $2.8 billion in the first nine months of 2025—on track to exceed 2024’s $3.2 billion total—bluetech’s slice remains negligible. This underinvestment overlooks opportunities in high-impact areas such as seaweed farming, which could generate $10 billion annually by 2030, or wave energy projects off Namibia’s coast. Bridging this gap requires investors who understand bluetech’s long-term value, not just short-term exits.

Current Funding Outlook

In 2024, African tech funding totaled $3.2 billion, down slightly from 2023 but rebounding in 2025 with $1.42 billion in the first half alone—a 78 per cent year-on-year increase. Fintech captured 40 per cent, agritech 15 per cent, and cleantech broadly 12 per cent, yet bluetech hovered at under 1 per cent of the pie. Of the $3.8 billion in climate funding to Africa since 2020, only $230 million—6 per cent—went to blue ventures, per Briter Bridges’ analysis.

This shortfall is evident in deal flow. In September 2025, startups raised $140 million continent-wide, but no major bluetech rounds surfaced. Contrast this with Kenya’s edtech boom, which pulled in $118 million in 2024. Bluetech firms like Nigeria’s Aquapower (wave-energy tech) or South Africa’s SmartXchange (coastal innovation hub) scrape by on grants, not scalable VC.

So, why the drought? Bluetech demands patient capital for research and development in unforgiving ocean environments and testing prototypes can take three to five years before regulatory nods from bodies such as the AU’s fisheries committee. Investors, accustomed to fintech’s quick pivots, view this as a red flag.

A 2025 UNDP report highlights how limited data on returns exacerbates this, with only 20 per cent of blue projects reaching commercial scale due to funding gaps. Without intervention, Africa’s blue wealth risks remaining just that—potential on paper.

Barriers to Investment: Misconceptions and Inherent Risks

Investors’ wariness boils down to three misconceptions: complexity, risk, and slow profitability. Bluetech isn’t “software on water”; it involves interdisciplinary challenges such as biofouling in aquaculture tech or salinity impacts on solar-powered desalination. A 2024 ScienceDirect study on African blue development identifies regulatory hurdles—varying EEZ laws across 54 countries—as a top barrier, delaying projects by up to two years.

Environmental risks compound this. Climate change threatens 30 per cent of Africa’s fish stocks by 2050, per the IPCC, while pollution from unchecked shipping erodes investor confidence. High capex is another deterrent: A single offshore wind farm off Ghana could cost $500 million, dwarfing a fintech app’s $5 million seed. Governance gaps, like illegal fishing costing $2 billion yearly, further muddy the waters.

Yet, these barriers are surmountable. Successful pilots, like Morocco’s $2 billion Noor Ouarzazate solar project (with blue desalination ties), show 15-20 per cent IRRs over 10 years. The key? Educating investors to see beyond the horizon.

The Role of Investor Education in Bridging the Funding Gap

Education isn’t optional—it’s the tide that lifts bluetech boats. Currently, only 15 per cent of African VCs have blue-specific knowledge, per a 2025 Project Syndicate analysis, leading to blanket rejections of “risky” deals. Programs like BlueInvest Africa 2025, hosted by the EU, gathered 500 stakeholders to demystify opportunities, resulting in $50 million in pledges.

Targeted curricula could cover R&D timelines, ESG metrics for marine impact, and case studies like Kenya’s $10 million seaweed fund, yielding 25 per cent returns. OceanHub Africa’s accelerator has trained 200 investors since 2023, boosting deal flow by 40 per cent.

By integrating bluetech into MBA programs at universities like Stellenbosch, we can cultivate a new generation of savvy funders. Briter Bridges advocates for webinars and toolkits, estimating that educated investors could unlock $500 million annually. This isn’t charity; it’s ROI on knowledge.

Flexible Investment Instruments: Tailoring Capital to Bluetech Needs

Rigid equity models fail bluetech, where 48 per cent of funding is equity-heavy but misaligned with 5-7 year horizons. Flexible instruments—like blended finance, revenue-based financing, and green bonds—offer breathing room. The Africa Adaptation Acceleration Program (AAAP) mobilized $25 billion in 2025 for resilient projects, including blue ones, via concessional debt.

Acumen’s Angels Climate Tech Africa, launched in September 2025 with EY, provides $100,000-500,000 in flexible capital to 20 early-stage ventures, blending grants and equity. Pooled funds, such as the $20 million BlueEarth-African Infrastructure Investment Managers partnership, de-risk via diversification.

A 2025 IISD report highlights how these instruments could mobilize $10 billion for African climate tech by 2030, with bluetech as a prime beneficiary. For instance, revenue-sharing models for aquaculture tech repay based on harvests, not arbitrary milestones, suiting variable ocean yields.

Cultivating Specialised Investors for Sustainable Growth

Generalists won’t suffice; bluetech demands specialists attuned to tidal shifts. Only 10 per cent of Africa’s 583 active VCs in 2024 focused on climate, let alone blue. Funds like Volition Blue and the $1 million Africa Blue Wave initiative target this void, backing 50 startups since 2024 with tailored due diligence.

Specialisation pays off: BlueEarth’s portfolio delivered 18 per cent returns in 2025, outpacing general climate funds. Incubators like EDHE‘s AI & Blue Tech Programme in South Africa have linked 100 specialists to deals, fostering ecosystems in hubs like Cape Town. Scaling this—through AU-backed networks—could triple bluetech funding by 2030, per Briter estimates.

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