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Several innovative and promising approaches to protecting and improving the global food supply are beginning to gain traction both internationally and in African markets.
Thanks to technology, Nigeria’s continued reliance on food imports and security can now be addressed with greater resource efficiency.
New digital agricultural technologies are radically changing the agricultural sector, upending long-standing industries and economic institutions and transforming society as a whole. They present new challenges and opportunities for decision-makers in the agricultural sector. The enormous potential of digital technologies is demonstrated by current possibilities in more developed ecosystems.
The agritech sector in Nigeria will stagnate, become less competitive and ultimately fail if these measures are taken. technologies are not deployed. As in every other field, such as retail, financial services or mining, where boring and repetitive operations are replaced by automation and smart technologies, jobs in the agricultural sector will change due to adoption of digital technologies.
Using technologies in the difficult conditions faced by African farmers is a difficult undertaking. Millions of small and medium-sized farmers across the continent cannot afford many other forms of technology and need access to the internet. By developing tools that farmers with varying degrees of technical expertise and education can use, agritech will grow.
Driving Africa’s research and agritech agenda is private investment, as a lack of government support forces inventors and entrepreneurs to turn to venture capital (VC). It may be ironic that Africa’s most populous country still struggles to finance its agritech industry. What actions are needed to resolve this issue?
Bridging the agritech sector financing gap
One of the biggest problems local agritech startups face when trying to expand their product offerings is lack of access to financing.
The government of Nigeria has, over time, established several public banks, as well as grant and financing programs for those outside the industry. These include the marketing and pricing policy for agricultural products; the input supply and distribution policy; the agricultural input subsidy policy; agricultural mechanization policy; water resources and irrigation policy; and agricultural extension, technology transfer policy, agricultural transformation program (ATA), agricultural promotion policy and several others. None of them have adequately addressed financing issues within the agritech sector.
Unfortunately, there remains a significant disconnect between financing channels and agritech companies. To fully benefit from the potential of Agritech, agricultural potential must be fully exploited. McKinsey estimates that eight times more fertilizer, six times better seeds and at least $8 billion in basic storage will be needed across Africa.
Even more, major investments It will require improvements to basic infrastructure – such as ports, roads and energy – as well as adjustments to business models and local laws.
Through the application of agritech, venture capitalists could unlock the potential of Nigeria’s smallholder farmers as the country’s leading industry. By investing in truly innovative local businesses and technologies, they will be able to leverage technological advancements to support the competitiveness of essential industries through innovation and drive economic growth in Nigeria.
