Industry leaders in the Agricultural Technology (AgTech) sector have highlighted the urgent need for increased investment, particularly to support women entrepreneurs, who are playing a pivotal role in revolutionizing farming practices across the globe.
This call was made during the 8th Annual Learning Event hosted by Mercy Corps AgriFin, which focused on driving innovation and growth in digital agriculture.
Speaking at the event, AgTech stakeholders stressed the importance of expanding technological solutions to smallholder farmers, emphasizing that time is of the essence.
According to the State of AgTech Investment 2024 Report, the AgTech sector has attracted approximately $1.6 billion in funding over the past decade.
However, experts believe this is not enough to meet the growing demands of the industry.
To fully unlock AgTech’s potential, stakeholders are advocating that this needs to double over the next decade to more than $3 billion in investment over the next decade to keep pace of innovation.
“AgTech has been better than most sectors in Africa in directing funding to where it can be most impactful, but challenges still exist. More than 40% of AgTech ventures remain unfunded, with a large portion of these being women-led ventures who have the potential to scale solutions that can improve the lives of smallholder farmers, particularly for women,” the report notes.
Many smallholder farmers, particularly women, continue to struggle with low productivity and lack the tools and support needed to scale their operations.
Technological solutions, such as mobile apps that provide weather updates and market prices, as well as digital platforms connecting farmers with buyers, offer a lifeline to these communities.
A major challenge identified in the sector is the need for improved business models and go-tomarket strategies tailored to the unique needs of smallholder farmers.
Women entrepreneurs are often leading the development of practical and accessible solutions, yet they require more financial backing to grow their businesses and make a broader impact.
Sieka Gatabaki, Program Director for Mercy Corps AgriFin, spoke about the organization’s efforts to support gender inclusion in the AgTech sector. “Our program has developed a gender toolkit to help public and private sector actors better understand the needs of women farmers,” he noted.
“These initiatives allow for the creation of gender-responsive products that enhance the productivity and income of women in agriculture. When women in rural communities earn more, they reinvest in their families, improving household resilience through better access to education and healthcare,” Gatabaki added.
He further emphasized that incorporating women into the AgTech ecosystem not only uplifts communities but also boosts agricultural efficiency and sustainability.
“As more women become involved in the sector, new ways of addressing some of the most pressing challenges can be discovered and solved,” Gatabaki said.
David Saunders, Director of Strategy and Growth at Briter Bridges, underscored the importance of data collection to direct funding where it is most needed.
“Going forward we need to improve the quality and relevance of data on the AgTech ecosystem in Africa to ensure that we can match ventures with the right type of funding and the right type of support to unlock their potential to support smallholder farmers and improve food systems in Africa,” Saunders stated.
The 8th Annual Learning Event serves as a critical platform for discussing the challenges and opportunities in the AgTech space, with a special focus on how digital innovations can transform farming and improve livelihoods, particularly for women and smallholder farmers across Africa.
