GPI Global Policy Institute

Africa’s demand for food is growing. Between 2010 and 2030, the total worth of its food industry is projected to hit the $1 trillion mark. While existing technologies like improved seeds and fertilizers will be critical to meeting this demand, Africa’s farmers will need additional new tools to improve yields and get their goods to market. Digitalization can deliver these tools.

Africa has already been experiencing rapid digitalization in many sectors, mostly due to the rise in mobile phone penetration, which has also led to increasing internet usage. Notably, the price for mobile internet in Africa dropping by 30% since 2015.  However, even with the rapid growth of start-ups and tech companies delivering services to the agricultural sector, most digital solutions are not yet reaching poor, rural and smallholder farmers and value chain actors.  The harsh reality is that in most cases, digital solutions in the agriculture sector are currently outpacing the readiness to adopt them.  This is mostly because African agriculture is predominantly smallholder driven.  Thus, as oddly as it sounds, there is a risk of widening the digital-gender divide if the benefits of private sector-driven innovations are not shared equitably, especially for women and smallholder farmers who are the weakest and often voiceless actors in the value chain.

The three speakers spoke passionately about their digitally enabled initiatives which are efficiently and sustainably unlocking the potential of smallholder farmers and the agribusiness sector.  The technologies discussed include data capturing, analyzing, and information dissemination models to make more informed operating decisions.  Others spoke about blockchain trading platforms and innovative practices help farmers increase their yields and incomes by sourcing inputs such as seeds, fertilizers, and other crop protection products with better quality and at lower rates.  Other types of virtual platforms that were mentioned help identify input suppliers, off-takers, sources of finance, new markets, and technical assistance.

The last major topic mentioned was the need for African Governments to develop the digital architecture required to help drive private sector investment in areas as diverse as production, postharvest handling, market access, finance and supply chain management. The three main actions raised were: 1) create a fair, transparent and smart regulatory environment that consumers and service providers can both have confidence in, 2) adopt national digital agriculture strategies, coupled with public investment plans, and 3) prioritize high-quality, skilled-based digital education, especially amongst young people.

By the end of the session, the panel was certainly in agreement that inclusive, digitally enabled agricultural transformation could help achieve meaningful livelihood improvements for Africa’s smallholder farmers and pastoralists as well as drive greater engagement from women and youth by creating employment opportunities along the value chain.

The Sustainable Agriculture in Africa webinar series is being put together by Dr. Adam Saffer, the President of Gateway Development International, an impact investment advisory and consulting firm focused on climate smart agriculture, renewable energy, inclusive workforce development, and job creation. Adam brings over 30 years of international development experience in Africa, Asia, Europe, and the Middle East.