Africa Agritech Start-ups and Opportunities - Adoption of Sustainable Technology

Overview

Africa Agriculture Technology Market

Africa, home to nearly one-fifth of the global population, contributes only 3% to global GDP and 2% to world manufacturing value added (MVA), with agriculture serving as the backbone of its economy. Employing 65–70% of the labor force and contributing 30–40% to GDP, agriculture is critical for economic stability, especially in rural areas where over 70% of the impoverished population resides. However, productivity challenges persist due to small farm sizes, low mechanization rates, and limited access to finance, infrastructure, and markets.

Agri-tech innovations are emerging as a transformative force to address these challenges. The sector leverages technologies ranging from mobile advisory services to advanced data analytics to boost productivity, improve food security, and reduce poverty. Countries like Kenya, Nigeria, and Ghana lead the continent’s Agri-tech revolution with successful startups such as iProcure, Fresh Direct Produce, and AgroCenta, demonstrating the potential for innovation to modernize agriculture.

Strategic Initiatives Driving Transformation

• Technologies for African Agricultural Transformation (TAAT): This flagship program by the African Development Bank aims to double productivity, reach over 40 million farmers, and generate an additional 120 million metric tons of food by 2025.

• Smart Africa’s Agri-Tech Blueprint: A collaborative framework employing ICT to enhance agricultural productivity, developed in alignment with the Comprehensive Africa Agriculture Development Programme (CAADP).

• AATF’s Role: The African Agricultural Technology Foundation has facilitated USD 650 million in agricultural technologies, benefiting 4.8 million farmers and enhancing productivity through sustainable practices.

Africa's Startup Ecosystem in 2023: Challenges, Resilience, and Regional Highlights

In 2023, Africa's startup ecosystem faced a significant downturn, with funded ventures declining by 35.9%, marking the first decline since 2015 and 2016, respectively. Despite these challenges, the year remained the third-best for funded ventures and second-best for total capital raised, with long-term growth since 2015.

Nigeria led in funded startups but saw its total funding drop, falling behind Kenya, Egypt, and South Africa. The combined share of the top four markets rose, though their share of funded startups decreased.

Agri-tech funding declined for the first time, yet the number of funded startups grew slightly, demonstrating resilience. Kenya led agri-tech funding across seven startups, followed by Nigeria and South Africa, highlighting varied trends across the continent.

Africa Total Tech Startup Funding by Year, 2019 – 2023

Africa Agri-Tech Funding by Year, 2019 – 2023

Some Recent Fundings in Africa's Agri-Tech Startup Ecosystem

• In January 2025, Egyptian agri-tech startup ReNile secured funding to support its expansion in Egypt and initiate operations in Saudi Arabia. ReNile specializes in end-to-end smart farming solutions, utilizing technology to enhance agricultural productivity.

• In 2024, Apollo Agriculture, a Kenyan agritech startup, raised funding to accelerate its expansion across Africa. The investment was led by Swedfund and ImpactConnect.

• In 2023, Releaf, an agritech company specializing in Nigeria's oil palm sector, raised pre-Series A funding round. The funding will support the company's expansion efforts.

• In 2023, Ugandan agritech startup Emata raised seed funding to expand its agri-loan services across East Africa. Emata tackles the region's agricultural financing gap by offering automated loans to farmers at rates five times lower than traditional informal loans.

Regional Performance of Africa's Agritech Ecosystems

Eastern Africa

Eastern Africa thrives with dynamic startup ecosystems in Nairobi (Kenya ) and Kigali (Rwanda), serving as innovation hubs for agritech and fintech. Nairobi’s accelerators like iHub support startups like Twiga Foods and SunCulture, which address agricultural challenges through improved supply chains and solar-powered irrigation. However, poor infrastructure and unreliable power remain critical barriers to scalability.

Western Africa

Western Africa showcases growing agritech ecosystems, with Nigeria and Ghana driving innovation in precision farming and blockchain-based supply chain solutions. Despite these advancements, inadequate transportation networks and heavy reliance on debt financing pose challenges, underscoring the need for better infrastructure and equity investments.

Southern Africa

Southern Africa holds significant potential, led by South Africa’s agritech hubs in Johannesburg and Cape Town, where startups like Aerobotics flourish. Zimbabwe also contributes to sustainable farming practices. However, rural infrastructure deficits, unreliable electricity, and political and economic instability hinder scalability and investment.

North Africa

North Africa’s agritech growth is led by Egypt, Morocco, and Tunisia, with startups like Green Path and Agrivoltaic driving advancements in irrigation and solar-agriculture integration. However, political instability and limited venture capital access constrain the region’s ability to scale, making startups reliant on riskier debt financing.

Central Africa

Central Africa is emerging as a promising agritech region, with initiatives like Cameroon’s Agritech Innovation Challenge fostering early-stage development. Despite this, poor infrastructure, limited funding access, and political instability in countries like the DRC create substantial barriers to investment and growth

Scope of Work for Africa Agritech Start-ups Report

Makreo Research has released an insightful study titled, “Africa Agritech Start-ups and Opportunities - Adoption of Sustainable Technology”. This study provides an in-depth evaluation of the region's economic landscape across key sectors, including manufacturing, agriculture, and services. The report delves into the dynamic ecosystem of agri-tech start-ups in Africa, presenting a comprehensive analysis of the sector's past and current performance, with a focus on funding trends and their implications for the industry.

The study offers a detailed country-specific assessment, covering prominent nations such as Kenya, Nigeria, Egypt, South Africa, and Ghana, shedding light on their unique contributions to the agri-tech landscape. Additionally, it highlights the ecosystem of funded tech start-ups, exploring how innovation is shaping sustainable agriculture across the continent.

To provide actionable insights, the report evaluates key agri-tech companies and incorporates recent case studies, offering readers a practical understanding of the strategies and success stories driving the industry forward. It also presents a future growth outlook, identifying emerging opportunities and challenges stakeholders must consider capitalizing on the sector's potential.

This study serves as a vital resource for investors, policymakers, and industry players seeking to understand and leverage technology's transformative impact on Africa's agricultural sector.

• How is Africa advancing in Agriculture technology?

• Who are the key players adopting technology in agriculture?

• What are the recent agriculture and technological investments in Africa?

• How is Africa's Start-Up Ecosystem placed?

• Which are Funded Tech Startups in Africa?

• What is the Agri-Tech startup funding that happened in the past in Africa?

Companies Covered