- Experts argue that the combined impact of agtech, AI and fintech systems could transform Africa’s food systems.
- AI already predicts pests through apps like PlantVillage Nuru, while fintech platforms like Kenya’s Apollo Agriculture use satellite data for credit scoring, reaching millions. Rwanda’s AI monitoring and Ghana’s Emata increase resilience. Brookings highlights the inclusive potential of AI for small farmers.
- With patient capital and AI-fintech hybrids, Africa’s food systems could sustainably feed 2.5 billion people by 2050.
In October 2025, Nairobi was buzzing with optimism 9th Annual Learning Event (ALE), organized by Mercy Corps AgriFin in collaboration with Briter Bridges. More than 300 participants from more than two dozen countries gathered to confront a stark reality: despite agriculture employing more than 60 percent of Africa’s workforce and contributing up to 25 percent of GDP in many countries, agtech innovators are competing for capital. A recurring theme has been the persistent funding gap for agtech ventures, exacerbated by the continent’s heavy reliance on small-scale agriculture amid climate shocks and population growth.
Briter Bridges, an intelligence firm that tracks emerging markets, presented initial findings from the upcoming market AgTech in emerging markets report to the ALE. The data painted a global picture but highlighted Africa’s acute challenges: funding focused on on-farm hardware such as irrigation, limited instrument diversity, a treacherous “valley of death” for scale-up, and scarce exits.
Yet amid recessions, glimmers of hope emerged – especially in ag fintech and AI-driven solutions that combine finance with technology to transform food systems.
African food systems: financing shortfalls due to climate change
African agriculture feeds a billion people but faces existential threats. The World Bank estimates an annual financing gap of $117 billion for agricultural SMEs and smallholders, while climate change could reduce yields by 20 to 30 percent by 2030 without adaptation.
The FAO reports that 257 million Africans will go hungry by 2023, with malnutrition costing 11 percent of GDP. Introducing agtech: digital tools that promise precision agriculture, resilient crops and efficient markets. Integrated with AI for predictive analytics and fintech for inclusive credit, these innovations could boost returns by 30 percent by 2025, according to industry forecasts.
Briter’s State of AgTech Investment in Africa 2024 shows a decade of progress: $1.56 billion in more than 700 deals for more than 400 startups from 2014 to the third quarter of 2024. After peaking in 2022, funding stabilized last year at $215 million – 50 percent above 2019-2020 levels, but lower than all-time highs due to caution in global venture capital investments. AgFunder’s 2024 report shows a recovery in the first half of the year: $145 million, up 1.6 percent year-on-year, with full-year revenue of $192 million.
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Trends in the financing landscape of Africa’s food systems, according to Briter Bridges
Focus on the farm: Hardware such as solar irrigation dominates and attracts the most funding. Kenyan SunCulture is an example of this and is scaling up pay-as-you-go pumps.
Experimenting with instruments: Africa is a leader in concessional debt and hybrids. DFIs cover 70 percent of deals over $1 million.
Valley of Death: Relies on fragmented rounds early on; post-agriculture financing fell by 80 percent.
Scarce exits: global issue, but Africa has ag-fintech liquidity like Pula’s $20 million Series B.
Globally, AgFunder notes that emerging markets are up 63 percent to $3.7 billion by 2024, weathering the declines. Africa lags behind with 5 percent, but ag-fintech leads with 41 percent ($65 million).
AI and fintech are game changers. AI predicts pests through apps like PlantVillage Nuru, while fintech platforms like Kenya’s Apollo Agriculture use satellite data for credit scoring and reach millions. Rwanda’s AI monitoring and Ghana’s Emata increase resilience. Brookings highlights the inclusive potential of AI for small farmers.
Success stories
Success stories abound. Pula insured 15 million farmers; Complete Farmer connects Ghanaian growers with markets, while the Nigerian Releaf processes palm oil efficiently.
However, some challenges still remain. For example, there is still geographic concentration (Kenya 53 percent, Nigeria/Egypt/Ghana follow), gender gaps (women-led <1.5 percent), infrastructure shortages. CPI warns that venture capital is modest given the $1 trillion global deficit.Briter insists on a holistic approach: raising commercial capital through semi-commercial funds. The AgBase platform tracks opportunities.Right now, the statistics for the first half of 2025 show innovation: digital tools on farm, inclusive practices. With patient capital and AI-fintech hybrids, Africa's food systems could sustainably feed 2.5 billion people by 2050.When ALE closed, Sieka Gatabaki of Mercy Corps AgriFin emphasized the impact of local information. The convergence of agtech, AI and fintech not only closes gaps, but also ensures a resilient future.
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