Experts have called for urgent reform in both agricultural technology (AgTech) adoption and policy making.
They have stressed that policies must be predictable, transparent, and designed with input from those directly involved in the agricultural sector.
Africa is home to 60% of the world’s arable land, presents an immense opportunity for agricultural development. Yet, this potential remains largely underutilized, prompting industry experts to call for urgent reform in both agricultural technology (AgTech) adoption and policy making.
Speaking at the 8th Annual Learning Event hosted by Mercy Corps AgriFin, CEO AHK Corp, Ali Hussein Kassim argued that the agricultural sector’s progress has been stifled by inadequate attention to policy.
He emphasizes the need for an open dialogue on how policy is structured and implemented. “We need an honest conversation on how policy is executed by our leaders,” Kassim notes, stressing that a blend of local and foreign investors is essential to push the industry forward.
He says, the underutilization of arable land in Africa, despite its vast potential, stems in part from ineffective policies that fail to encourage innovation and investment.
Similarly, Kassim highlights that the right policies can stimulate interest from investors, who are critical in financing and supporting the sector’s growth.
Investors and role of policy
Speaking in the same forum, Toffene Kama, the Principal Investor, Mercy Corps Ventures underscored the importance of predictable and investor-friendly policies.
“We look at the impact of policies in place,” Kama says, pointing out that agricultural investors often hesitate in the face of unclear regulations or unpredictable governance.
A stable policy environment is necessary for long-term planning, especially in the agricultural sector where returns on investment are often gradual.
Kama also advocated for African nations to have greater control over what they produce, export, and import.
He noted that while external markets are important, African countries should develop more self-sufficiency in their agricultural sectors. This would not only ensure food security but also give local farmers greater control over pricing and production decisions.
Role of Technology
Technology has been heralded as a game-changer in transforming African agriculture, but Kassim argues that the conversation needs to shift from mere adoption to how technology can solve the unique challenges faced by African farmers.
AgTech solutions that address soil health, weather patterns, and resource management are vital in improving agricultural productivity.
“Let us start looking at the challenges facing us in technology,” Kassim says, urging the need for innovations that are tailored to Africa’s diverse agricultural landscapes. Leveraging technology, such as AI-driven tools for optimizing production, or drones for monitoring crop health, could make a significant difference in output and efficiency.
Green Finance and Infrastructure Development
Consequently, Tamara Cook, CEO FSD Kenya pointed to the critical role of financing in agricultural growth.
She noted that while infrastructure development is key to supporting agriculture, it could be funded through green finance initiatives.
Green finance, which focuses on investments in environmentally sustainable projects, has the potential to fund much-needed agricultural infrastructure while also addressing environmental concerns.
“There are gaps in data,” Cook observed, particularly when it comes to small and medium-sized enterprises (SMEs) in agriculture. A large percentage of African agribusinesses are SMEs, many of which lack access to formal financing channels and rely heavily on personal or family resources.
This lack of data not only hinders their growth but also makes it difficult for policymakers to create informed policies.
Digital space and amplifying community voices
The digital space offers a unique opportunity to amplify the work being done by communities in agriculture.
According to Cook, policymakers and investors alike should take note of the initiatives already underway in rural communities and look for ways to scale them.
By bringing these voices to the forefront, Africa can foster home-grown solutions that address its specific agricultural challenges.
The stakeholders noted that by blending AgTech innovations with well-structured policies, Africa has the potential not only to feed itself but to become a global leader in agricultural production.
However, they remarked that this will require deliberate efforts from all stakeholders to address the existing challenges and capitalize on the vast opportunities.
