Key Takeaways

• African agrifoodtech investment reached $192 million in 2024, remaining strong post-COVID with key players like SunCulture and Apollo Agriculture dominating funding.
• Kenya, Egypt, and Nigeria lead in investment due to large economies and populations, but emerging markets like Ghana and Morocco are gaining attention.
• Future success hinges on addressing unique agricultural challenges in Africa through specialized funds and data-driven solutions, particularly in marketplaces and midstream technologies.

African Agrifoodtech Landscape in 2024

In 2024, funding for African agrifoodtech startups remains robust at $192 million, reflecting a growth of over 600% compared to a decade ago. Prominent names such as SunCulture, Apollo Agriculture, and Pula Advisors are frequently recognized, showing continuity in the landscape from past years. Notably, funding levels are consistent with pre-COVID figures, with a peak of $776 million achieved in 2022.

The primary drivers of this investment are Kenya, Egypt, and Nigeria, which together house substantial populations and economies. Nigeria boasts a population of 228 million and a GDP of $364 billion, while Egypt follows closely with 114 million inhabitants and a GDP of $396 billion. Kenya’s smaller population of 55 million still significantly contributes to its agrifood market, supporting around 8 million smallholder farmers.

As historically successful startups mature, the industry is eager to see new entrants emerge. This provokes questions about the viability of new startups in an era marked by global economic uncertainties. Investors, like Maurice Scheepens from FMO, are actively searching for opportunities in less-covered markets, noting that there is excellent potential beyond established leaders like Kenya and Nigeria.

Ghana, for example, is the fourth-most-funded country in agrifoodtech with a population of 34 million and a GDP of $76 billion, and Morocco is noted for similar metrics. Investors are increasingly seeking opportunities in these regions, despite their relatively smaller markets.

Emerging Trends in Scottish Agrifoodtech

Funding trends indicate an increasing preference for sector-specific investments. Sherief Kesseba from the Climate Resilient Africa fund highlights the necessity of specialized funds that can effectively identify and support startups addressing specific agricultural issues. For example, startups like Winich Farms in Nigeria connect smallholder farmers with financial services, while projects like Sea Gardner in Egypt enhance distribution networks for seafood.

To stimulate growth in sustainable agricultural practices, there is a call for investments targeting Ag Marketplaces and Midstream Technologies, which are critical to enhancing supply chain efficiencies. These categories are particularly important as they cater to over 80% of the African food system reliant on smallholder farmers.

Innovative technologies are reshaping traditional agricultural practices. Startups like Apollo Agriculture leverage machine learning and satellite data for financial assessments, enhancing access to credit and insurance for farmers. Concurrently, social enterprises like WARC are promoting low-tech solutions, demonstrating that technology doesn’t always need to be the focal point.

The Future of Agrifoodtech in Africa

The outlook for African agrifoodtech includes a focus on precision agriculture, post-harvest loss reduction, and data solutions that enhance traceability. In light of regulations such as the EU Deforestation Regulation, traceability is becoming imperative for African producers. The future could belong to startups that specialize and focus on niche areas, unlike earlier ventures that attempted broad “end-to-end” solutions but struggled to scale.

Investors increasingly prioritize deep understanding of agricultural sub-sectors. This nuanced approach facilitates investment in startups that demonstrate ability to address distinct challenges, thereby fostering growth and resilience in the African agrifood sector. Building strong early relationships with customers and forming strategic partnerships are essential components for success.

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