In Africa, millions of people depend on agriculture for food, income, and jobs, and it remains a key driver of economic growth across the continent. Still, farming has never been easy.
Smallholder farmers grapple with climate shocks, limited financing, fragmented markets, and inefficient supply chains. Agrifoodtech startups are stepping in to close these gaps, bringing technology and capital to a sector long overdue for innovation.
According to AgFunder’s recent Developing Markets AgriFoodTech Investment report, Kenya, Egypt, and Nigeria continue to dominate Africa’s agrifoodtech landscape—and for good reason.
Nigeria, with a population of 228 million and a GDP of $364 billion, has an estimated 38 million smallholder farmers. Egypt follows closely with 114 million people, a GDP of $396 billion, and about 24 million smallholders, while Kenya’s 55 million people include nearly 8 million smallholder farmers.
Yet funding remains a major challenge for the sector. Agrifoodtech is often perceived as high risk due to long production cycles, exposure to climate variability, and thin margins at the farm level. Many investors remain cautious, preferring faster-return sectors such as fintech, while early-stage agrifood startups struggle to scale without patient capital and blended financing.
In 2024, Kenya emerged as the continent’s top destination for agrifoodtech investment, attracting about $95 million. Nigeria and Egypt followed, each raising roughly $26 million, underscoring investor confidence in markets with scale, demand, and strong agricultural fundamentals.
For the foreseeable future, Ag Marketplaces & Fintech and Midstream Technologies remain the most attractive investment categories.
