Browsing: Agri-tech

agriculture digital solutions
  • Digital solutions offer sustainable food security options for Africa.
  • African governments must invest in agri-tech to boost productivity.
  • Kenya’s Shamba Shape Up cited as a viable agri-tech solution. 

Agriculture digital solutions have the power to transform agri-food systems in emerging markets by bringing efficiency across all value chains.

“Technology, when applied to agriculture, results in higher income for farmers, increased output, and improved food security…these are among the benefits of utilizing digital tools in an agricultural setting,” said Prof. Mark Natoloi, in a recent research report that reviewed digital solutions for African farmers.

Governments could assist farmers and other agriculture stakeholders by deploying digital tools for important tasks, such as distributing subsidies to farmers or managing the inventories in storage facilities.

“When used as part of a national agricultural-transformation program, digital tools could help raise the incomes of smallholder farmers, increase crop output, and support food security,” reads the report …

food inflation
    • Africa failing to meet the needed sustainable agriculture practices
    • Adoption of sustainable agricultural practices remains low across the continent
    • Digital development key to agro-development in Africa

Food inflation in Africa

Food inflation in Africa is worsening by the day, with the World Bank reporting that 5 of the World’s top 10 countries with the highest real food inflation rates are African countries.

The World Bank’s May 2024 “Food Security Update” highlights sustainable agriculture importance to Africa’s agri-food systems.

“The tenets of sustainable agriculture entail reconciling environmental and social equity with economic development in order to provide for the present without compromising the ability of future generations to meet their own needs,” reads the report in part.

Analysts suggest that sustainable agriculture practices seem elusive for Africa, given that Africa holds 60 per cent of the World’s arable land. Yet, it cannot feed itself, let alone the rest of the World.

It feels very appropriate to talk about investing in disruptive innovation at a time when all of our lives have been so seriously disrupted by Covid-19.  

Many investors are drawn to the “retail” investments peddled by banks and insurers. Huge amounts of money are given to East African governments in the form of Treasury Bonds and Bills that pay between 9% and 15% per annum before withholding taxes are applied. And post-Covid what will your KES, UGX, ZAR, TZS or RFR actually be worth? And how safe do you think East African government debt will actually be? The default investment for many East Africans has traditionally been property but in a damaged economy property looks like the most illiquid of assets – and a likely victim of a global correction in prices.   

Of course there is a place for retail investments – low risk, short and fixed terms, average