Agritech has the potential to add enormous amounts of value for Africa given the history of the agricultural sector across the continent, and here are some good reasons to support this view:
Large and Growing Market: Agriculture is a primary sector of many African economies, accounting for a significant portion of employment and GDP. The demand for food and agricultural products in Africa is expected to grow significantly as the population increases.
High Agricultural Potential: Africa has some of the most fertile lands in the world, but it needs to be more utilised due to a lack of modern farming technologies and techniques. By investing in agritech, it is possible to increase productivity and yield, leading to increased profitability for farmers and investors alike.
Increasing Adoption of Technology: The adoption of new technologies in Africa has accelerated in recent years, with mobile phones and other digital devices becoming more widespread. This presents an opportunity to leverage technology to enhance agricultural productivity, efficiency, and sustainability.
Government Support: Many African governments are actively promoting investments in agriculture and agritech. This support may include tax incentives, subsidies, and other measures to encourage private-sector investment.
Social Impact: Investing in agritech in Africa can positively impact food security, poverty reduction, and rural development. Improving agricultural productivity and efficiency makes it possible to create jobs and boost economic growth in rural areas, where poverty rates are often highest.
Africa has over 60% of the world’s uncultivated arable land, which presents a significant opportunity for agricultural development. However, productivity is currently low due to a lack of access to modern technologies and practices.
“Africa’s agricultural business will be worth $1 trillion by 2030, due to the need to feed the expected continent’s increased population that is estimated to hit 2.5 billion by 2050, double its current 1.2 billion.”- the African Development Bank President (AfDB), Akinwumi Adesina
In Eastern and Southern Africa, agricultural productivity could increase by up to 2–3 times if better farm inputs and production technologies are adopted, water and soil resources are used more efficiently, and natural capital and ecosystems are restored.
Even though Africa has almost 25% of the agricultural land in the world and 50-60% of the world’s unused arable land, Africa still only makes up for a minute amount of global Agrifoodtech investments, as can be seen in the graph below:
