The agri-tech sector in Africa is booming, with Ghana, Kenya, and Nigeria accounting for over 60 percent of the active startups in Africa.
This was contained in a report by Disrupt Africa, the continent’s start-up portal, that shows Kenya and Nigeria currently tied in first place as the continent’s top two markets within the sector; with Ghana coming in third.
Kenya’s agri-tech market which has been the pioneer since 2010, accounts for 23.2 per cent of startups with 19 companies, with these startups being able to raise over Sh1.37 billion ($13.7 million) between 2015 and 2017.
The report goes on to indicate that although Kenya was the early pioneer of the agri-tech sector in Africa, the past two years have witnessed accelerating interest emerging from West Africa making this region, which is home to Nigeria and Ghana – two of the top three agri-tech ecosystems on the continent become dominant on the market.
32.9 per cent of the startups are involved in providing and applying agri-focused e-commerce to the agriculture industry, with a substantial number of entrepreneurs also focused on delivering fintech solutions for farmers.
In the last two years, $19 million worth of investment has been made in African agri-tech startups, with fundraising figures rapidly growing.
“The scope for innovation in the agricultural sphere is vast – a refreshed take on the sector could unlock huge value for the whole of Africa. That’s why this report is so exciting – it shines a light on the extent to which the continent’s entrepreneurs are already disrupting the agricultural industry.” said Gabriella Mulligan, a co-founder of Disrupt Africa who went on to say that “behind the scenes, there has been formidable acceleration in the agri-tech market recently, and it is one of the most interesting spaces to watch in Africa today.”
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