Africa’s emerging Agritech market is currently valued at €5.3 billion (Ksh616 billion), according to a new report by the Technical Centre for Agricultural and Rural Cooperation (CTA) and Dalberg Advisors.
The State of Digitalisation of Agriculture in Africa 2019 report identifies online marketplace solutions such as Agrikore as significant use cases of how digital tools are being built to tackle major challenges of attracting and retaining a significant number of buyers and sellers, and in thus doing, help to solve the problem of inefficient and fragmented agricultural markets.
The Agriculture market in Africa is projected to grow to $1Trillion (Ksh100 trillion) by 2030. It continues to be a catalyst of sustainable development primarily for enhanced food security, secondary, in the reduction of poverty and the overall growth of the continent’s economy.
The report also identified Cellulant as being among only 390 active Digitalisation for Agriculture (D4Ag) solution providers that are working across the continent and have the potential to not only support agricultural transformation but also the ability to do so sustainably and inclusively.
The report presents evidence on how such enterprises have improved market efficiency, transparency, aggregation and integration.
“Technology is at the heart of transformation in Africa. We believe by innovating around how supply and demand are organised, we can solve Africa’s food crisis. We are scaling up our existing payments products in the agriculture sector, this will allow us to increase access to payments for the millions of farmers who are still unbanked, despite the financial inclusion revolution,” says Bolaji Akinboro, Cellulant co-CEO.
The report noted that the bundling of digitally enabled Agritech solutions was gaining popularity with some enterprises incorporating either third party or proprietary payment solutions. The report cites the use of Cellulant’s Tingg payments platform which powers Agrikore, as an example.
Africa’s Agritech market netted an estimated $143 million (Ksh14.3 billion) — out of a total addressable market of $2.6 billion (Ksh260 billion) in 2018 according to the report.
Digitalisation for Agriculture (D4Ag) is an emerging sector with an estimated total addressable market revenue of between €2.3 billion (Ksh267.3 billion) (mid-range estimate but with potential to go as high as €5.3 billion (Ksh616 billion) in 2019) and growing at 44 percent per annum.