Kenya and Nigeria have taken first place as the leading agri-tech markets on the continent while Ghana has come third according to Disrupt Africa’s report. The three countries hold a share of more than 60 percent of agri-tech start-ups active on the continents.
The report indicates that Kenya was the early developer in the agri-tech sector in Africa but increased interest in West Africa in the last two years has made the region home to two of the three topmost agri-tech ecosystems in Africa.
The number of startups in this market has increased by 110 percent in the past two years and more than $19 million has been invested into the sector in the same period.
The 2018 Report entitled Agrinnovating for Africa: Exploring the African Agri-Tech Startup Ecosystem says that 82 agri-tech startups were operating across Africa at the beginning of this year with 52 percent of these startups having been launched over the past 24 months.
The report tracks yearly startup activity in the sector as early as 2010 and reports that there was limited activity until the end of 2015.
The current growth started in 2016 and over the two years, 43 startups have established operations across Africa.
Gabriella Mulligan, co-founder of Disrupt Africa said: “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. Behind the scenes, there has been [a] formidable acceleration in the agri-tech market recently, and it is one of the most interesting spaces to watch in Africa today.”
Tom Jackson, Disrupt Africa co-founder stated: “Everyone knows how important the agricultural sector is across Africa, but until very recently it remained relatively untouched by tech innovators. That is suddenly changing as entrepreneurs and investors realise the scale of the challenges facing farmers, and spot opportunities to reach huge addressable markets. Our latest report tells you all you need to know if you want to get involved in this still very nascent space.”
The start-ups in the agri-tech space using e-commerce platforms stand at 32.9 percent. Some of these start-ups are also using social platforms to share information and knowledge.