Africa needs to significantly improve productivity in its food value chains to meet the current and growing demand of an increasing population and achieve food security. Agricultural Technology (agTech) presents an opportunity to transform agriculture and food systems in Africa in the way Fintech has transformed financial inclusion in the past decade. AgTechs connect smallholder farmers to mechanization, quality inputs, and a range of digital services to improve farming, making it possible to de-risk, reduce the cost of servicing, and increase the productivity of small-scale agriculture to a point where it can be financed commercially, with support from blended finance along the way. How can policymakers, regulators, agTech companies, and the financial industry create the ecosystems needed to transform Africa’s agriculture and food systems, and generate domestic revenues for African countries?
Key points:
- What types of financing models can effectively close the funding gap, enhance resilience and productivity for smallholder farmers, and simultaneously de-risk investments for financiers?
- What types of partnerships have been most successful in scaling agri-finance solutions and what are the opportunities for replicating and scaling these across different African countries?
- How can policymakers encourage private-sector investment in agTech and create a supportive environment for agri-finance innovations?