Agriculture is a key sector of the African economy, contributing 10% to GDP, 8% of employment, and 25% of exports according to the World Bank. In some countries, agriculture accounts for more than half of all jobs. This sector is also critical to improving food security outcomes in Africa. Food insecurity affects more than two thirds of the population in Sub-Saharan Africa (SSA) and nearly a third globally. It constrains sustainable economic growth and poses serious public health consequences for its victims.
By 2021, FAO reported that around 346.4 million Africans suffered from severe food insecurity and an additional 452 million endured moderate food insecurity. That means that close to 800 million people (just over 60% of Africa’s population) do not know where their next meal is coming from. Yet, by 2050, the population of Africa is expected to double in size – by which point, the continent will be unable to grow enough food for its own people, let alone export to drive economic growth.
Digital tools give farmers access to information and advisory services, financial systems and key markets. Digital technology can also help smallholder farmers overcome many of the challenges that prevent them from implementing more sustainable farming practices. Below are highlighted examples of the different ways African farming communities are using Agritech to improve yields, showing which technologies are having the greatest impact in farming.
Consequently, there is a growing need to provide digital solutions that complement agricultural innovations to boost productivity and maintain food system resilience and food security across Africa.
As much as Agri-tech presents an opportunity to improve food production, it also offers a challenge for Africa. On one hand, technology can help improve the efficiency and effectiveness of agriculture in meeting the need for food. Therefore, the agricultural industry is in dire need of startups and the practical innovations they can deliver. On the other hand, the agricultural industry faces major challenges including lack of funding, produce loss in transit due to poor infrastructure, inefficient supply chains, and often unreliable markets. All these factors contribute to low yields and low farmer income.
The biggest challenge will be to reduce 23% undernutrition on average and 20% child stunting that plagues women/children in sub-Saharan Africa according to FAO. Nonetheless, if startups are able to address some of these issues by digitizing agriculture then African nations stand to benefit immensely.
The advancement of digital technology on the continent opens up unprecedented opportunities for the continent to leapfrog the West, realizing its true agricultural potential, and allowing it to rise rapidly from a status of perceived underdevelopment, poverty and hunger. Africa can achieve this by zeroing in on targeted innovations that deliver tangible returns in terms of food security, nutrition, income generation and other humanitarian outcomes that cultivate wellbeing.
The innovation economy is one of the most important fields when it comes to building a foundation for economic growth and development. Through this effort, countries can drive new sources of competition for industries and businesses allowing for further transformations in the products and services delivered. It is through innovations like these that enable food systems to be more efficient as well as sustainable, that builds a stronger position for Africa as potential contributors to global trade in the future.