AgTech Pushes for More Investment in Women-Led businesses and Smallholder Farming

Africa Science News

By Lenah Bosibori

 

Stakeholders in the Agricultural Technology (AgTech) sector have called for more investment to support women entrepreneurs and smallholder farmers who play a pivotal role in revolutionizing farming across the globe.

Speaking in Nairobi during 8th Annual Learning Event hosted by Mercy Corps AgriFin which focused on driving innovation and growth in digital agriculture, Sieka Gatabaki, Program Director for Mercy Corps AgriFin stressed the importance of expanding technological solutions to smallholder farmers.

“Many smallholder farmers, particularly women, struggle with low productivity and lack the tools and support to scale their operations. Technological solutions, such as mobile apps that provide weather updates and market prices and digital platforms connecting farmers with buyers, offer a lifeline to these communities,” said Gatabaki.

A major challenge identified in the sector is the need for improved business models and go-to-market 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.

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 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.

Further Gatabaki noted 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, emphasized 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 held from 15-16th 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.

Josephine Okolodi is one of the beneficiaries currently using an app that has transformed her farming. The app helps her buy products from other farmers. “When a farmer brings their products to the aggregation centre, I check the quality and measure the moisture content with a moisture meter. Within 10-20 minutes, the farmer can receive their payment after I get the best quality,” says Okolodi.

Further Okolodi urges both young and aged farmers to embrace technology as it provides more solutions to the current problems farmers go through. “If we don’t embrace digital technologies, we will be left behind,” adds Okolodi.

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