Africa is witnessing a remarkable surge in agritech investments and sustainability initiatives, according to Mr Tomi Davies, venture capitalist and technology advisor, who identifies key areas shaping the sector and how startups and investors are fueling the growth.
Venture capital, Mr Davies says on LinkedIn, has contributed immensely to the growth of the agritech sector, with leading firms like TLcom Capital, Partech Africa and 4DX Ventures focusing on upstream agriculture technologies. The focus runs all the way to downstream processing and retail, with investments in platforms such as Farmcrowdy, Hello Tractor, SunCulture and Esoko presenting their commitment to sustainable and efficient agricultural practices across the supply chain.
Mr Davies expresses his satisfaction stating that, “I’m glad to see that startups are at the forefront, innovating to revolutionise farming practices. With government support and collaborations bolstering this growth, the agritech sector is no longer confined to primary production. It has expanded its horizons, capturing the attention of investors who now see the immense potential of agritech in addressing food security and enhancing the value chain.”
Looking ahead 2024, Mr Davies envisions a landscape where, “mobile technology continues to democratise access to agricultural information and services. Investment in precision agriculture and sustainable practices will rise. Digital platforms will enhance market access, eliminating intermediaries. Emerging technologies like AI, IoT, and blockchain will further spur innovation. Drones and satellite imagery will revolutionise farming practices, especially in monitoring and verification solutions. The MRVs usher in the advent of carbon credits which will not only provide additional income for African farmers but also contribute to global environmental sustainability.”
Tomi Davies: Africa’s Agritech landscape is ripe
Commenting on key trends in African Agritech early stage investment, Davies says that, “the African Agritech landscape is ripe with opportunities for angel investors and early stage VCs who are eager to be part of this transformative journey.”
He then identifies five key trends in early stage investments that are shaping the agritech sector:
Farm Management Software: Taking advantage of data-driven decision making, these technologies help to improve farming operations by streamlining logistics and optimising resources in order to enhance productivity.
Market Access Platforms: Platforms connecting farmers directly to consumers are changing how markets work through innovations that enhance profit and empower farmers to gain more control over the sales of their produce.
Fintech for Agriculture: According to Davies, financial solutions provide easier access to financing, insurance and seamless transactions, fostering financial inclusion for farming families and sustainable growth.
Post-Harvest Management and processing: This is concerned with transforming raw produce into value-added products with the aid of technology as it has benefits which includes reducing food loss and enhancing shelf life.
Climate Smart Agriculture: This area has witnessed significant growth in terms of emerging technologies like precision farming and efficient irrigation systems, these are practices that mitigate and adapt to climate change. Davies opines that using AI and sensors to measure farm-based carbon sequestration, creating certified credits for sale on voluntary markets is the big opportunity here.
Looking ahead 2024, Mr Davies envisions a landscape where, “mobile technology continues to democratise access to agricultural information and services. Investment in precision agriculture and sustainable practices will rise. Digital platforms will enhance market access, eliminating intermediaries. Emerging technologies like AI, IoT, and blockchain will further spur innovation. Drones and satellite imagery will revolutionise farming practices, especially in monitoring and verification solutions. The MRVs usher in the advent of carbon credits which will not only provide additional income for African farmers but also contribute to global environmental sustainability.”
