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How Big is The Market for Agritech in Africa?

by Sanusi Afeez Opeyemi
8 minutes read
Agritech

Not long ago, the sight of a drone flying over vast fields would leave farmers gazing in awe. Today, that wide-eyed amazement has evolved into a sense of pride. These sleek flying machines, along with other Agritech innovations, have become loyal companions in the modern farmer’s toolkit.

In Africa, Agritech is not just a trend—it’s a revolution. The industry is set to elevate agriculture from a stereotypically ‘dirty man’s job’ to a thriving profession that inspires passion, especially among the continent’s tech-savvy youth. As the Agritech market grows, the future of African agriculture looks brighter than ever.

In this article we’ll explore the market potential of Agritech in Africa.

What Is Agritech?

Agritech, short for Agricultural Technology, is an industry worth $7.8 trillion. In clear terms, it refers to the use of technology in agriculture, horticulture, and aquaculture with the aim of improving yield, efficiency, and profitability. It encompasses a wide range of innovations, from IoT sensors and drones to AI-powered analytics and blockchain for supply chain management.

In the African context, Agritech is not just about high-tech solutions; it’s about appropriate technology that addresses the specific challenges faced by farmers on the continent. These challenges include limited access to information, inadequate infrastructure, unpredictable weather patterns, and difficulties in accessing markets.

Market Potential of Agriculture in Africa

Monitoring her crops closely for better yield

The Agritech sector in Africa presents a significant and growing market opportunity. Here are some key factors contributing to its potential:

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Economic Importance


The agricultural sector in Africa holds immense economic significance and untapped potential. Agriculture accounts for about 23% of sub-Saharan Africa’s GDP and employs 60% of the population, making it the largest economic sector on the continent. According to McKinsey & Company, agriculture represents 15% of Africa’s total GDP, equating to more than $100 billion annually. This sector’s impact extends beyond these headline figures, as it generates up to 30% of export revenues for many African countries and provides up to 70% of household income in rural areas.

The economic importance of agriculture in Africa is further underscored by its role in poverty reduction. Studies have shown that a 10% increase in crop yields can lead to approximately a 7% reduction in poverty across the continent. This statistic highlights the critical role that agricultural productivity plays in improving livelihoods and fostering economic development throughout Africa.

Untapped Potential

Despite its current significance, African agriculture has yet to reach its full potential. Africa holds about 60% of the world’s uncultivated arable land, presenting an enormous opportunity for expansion and growth. However, current productivity levels lag behind global averages, with crop yields in Africa 56% below the international benchmark. This productivity gap is attributed to several factors, including limited use of modern farming techniques, underutilisation of irrigation, and low use of fertilisers.

Agritech has the potential to play a crucial role in addressing these challenges and unlocking Africa’s agricultural potential. Precision agriculture technologies can optimise the use of inputs like water and fertilisers. Mobile apps can provide farmers with crucial information about best practices, weather forecasts, and market prices. Drone technology can assist with crop monitoring and targeted application of pesticides, while IoT sensors can improve irrigation efficiency. However, it’s important to note that unlocking this potential will require more than just technology. Supportive policies, infrastructure development, and capacity building among farmers are also crucial. 

Growing Investment

The market size for Agritech in Africa is also projected to expand substantially. Estimates from the Bank of Industry suggest that the market is expected to reach $1 trillion by 2030.This growth is being driven by a combination of factors, including increasing smartphone penetration, rising demand for food security solutions, and the need for more efficient agricultural practices in the face of climate change.

Key markets leading this Agritech revolution include Nigeria, Kenya, Ghana, South Africa, and Egypt. These countries are not only seeing a proliferation of innovative startups but are also attracting significant investment. Notable startups in the space include Twiga Foods in Kenya, which has raised an impressive $157.1 million, and Apollo Agriculture, also in Kenya, which has secured over $40 million in funding. Other significant players include HelloTractor in Nigeria and Aerobotics in South Africa, which have raised $4.2 million and $27.4 million respectively.

Government Support


Complementing the private sector interest is growing government support for Agritech initiatives. Many African governments are recognising the critical role that technology can play in modernising agriculture and achieving food security. A prime example of this is Kenya’s Agricultural Sector Transformation and Growth Strategy (2019-2029), which explicitly emphasises the role of technology in achieving food security and improving agricultural productivity. This strategy outlines plans to leverage digital technologies to provide extension services, improve market access for smallholder farmers, and enhance overall agricultural efficiency.

Similar initiatives are being implemented across the continent. In Nigeria, the government has launched the National Agricultural Technology and Innovation Policy (NATIP), which aims to drive technological adoption in the agricultural sector. Ghana’s Planting for Food and Jobs program also incorporates elements of agricultural technology to boost productivity.

Climate Change Adaptation

Climate change adaptation has become a critical focus for the agricultural sector in Africa, driving the need for innovative Agritech solutions. As the continent grapples with increasingly unpredictable weather patterns, prolonged droughts, and extreme temperature fluctuations, farmers are turning to technology to build resilience and maintain productivity.

One key area of innovation is the development and distribution of drought-resistant crops. Companies like Corteva Agriscience and BASF are working on genetically modified seed varieties that can withstand water stress and maintain yields even in harsh conditions. For instance, Water Efficient Maize for Africa (WEMA), a public-private partnership, has developed drought-tolerant and insect-resistant maize varieties that have shown yield increases of 20-30% under moderate drought conditions.

Supply Chain Optimisation

Supply chain optimisation represents a significant opportunity for Agritech in Africa. The continent’s agricultural supply chains are often fragmented and inefficient, leading to substantial post-harvest losses and reduced income for farmers. According to the Food and Agriculture Organisation (FAO), post-harvest losses in sub-Saharan Africa can reach up to 32% of total production, a staggering figure that highlights the need for innovative solutions.

Agritech companies are stepping in to address these challenges with a range of technologies. Mobile platforms that connect farmers directly to buyers are gaining traction across the continent.Nigerian startup ColdHubs provides solar-powered cold storage units that can be used in rural areas lacking reliable electricity. This not only increases farmers’ incomes but also ensures fresher produce for consumers.

Agritech in Africa: A Potential Waiting to be Realised

 As governments increasingly recognise and support the potential of Agritech, through favorable policies. And as more entrepreneurs and investors turn their attention to African agriculture, the continent stands on the brink of an agricultural revolution. The Agritech market in Africa is not just an opportunity waiting to be explored; it’s a necessity waiting to be realised, with the power to reshape the continent’s economic landscape, ensure food security, and position Africa as a global agricultural powerhouse in the 21st century.

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Agritech Digest seeks to provide the latest agricultural news, technology, innovations, and insights to promote awareness of agritech startups. It is dedicated to empowering Agritech startups, investors, policymakers, farmers, and agri-enthusiasts by offering knowledge and resources, helping them succeed in the evolving world of agritech and entrepreneurship in agriculture. Agritech Digest aims to showcase the vast potential of the agricultural technology industry by attracting investors and young talent through highlighting technology and innovations in the agritech industry.


Agritech Digest seeks to provide the latest agricultural news, technology, innovations, and insights to promote awareness of agritech startups. Agritech Digest aims to showcase the vast potential of the agricultural technology industry by attracting investors and young talent through highlighting technology and innovations in the agritech industry.

Agritech Digest seeks to provide the latest agricultural news, technology, innovations, and insights to promote awareness of agritech startups. Agritech Digest aims to showcase the vast potential of the agricultural technology industry by attracting investors and young talent through highlighting technology and innovations in the agritech industry.

Agritech Digest is your gateway to a fascinating world where agriculture meets technology.

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