Introduction

The agriculture sector is the backbone of Africa’s economy, as it provides employment opportunities for over 60% of the continent’s workforce. It also contributes significantly to the continent’s GDP, approximately 23%, according to the African Development Bank. The sector however has historically faced challenges such as:

• Low Productivity: Despite having over 60% of the world’s uncultivated arable land, Africa’s agricultural productivity is lower than the global average.
• Food Security: Approximately 650 million Africans lack sufficient food, highlighting the urgent need for improved agricultural practices and food systems.
• Climate Change: Adverse climatic conditions, including droughts and floods, significantly impact agricultural output.
• Infrastructure: Inadequate infrastructure such as; poor road networks and limited access to markets hampers the efficient distribution of agricultural products.

This is where Agri-entrepreneurship comes in, offering innovative solutions to these problems while tapping into Africa’s vast potential as the “world’s food basket”. According to research conducted by the Tony Elumelu Foundation, agriculture is rapidly becoming a hotbed for entrepreneurs with new ideas for higher-quality products and advanced processes, integrated supply chains, value-added exports, and a variety of other lucrative business opportunities.

The Rise of Agri-Entrepreneurship in Africa

Agri-entrepreneurship, or the integration of entrepreneurial principles into agriculture is gaining momentum across Africa. A new wave of innovative farmers known as agri-entrepreneurs are leveraging technology, sustainable practices and entrepreneurial skills to revolutionize farming and address key challenges in the sector. These farmers are recognizing the potential of agriculture as a profitable and sustainable business, and as a result, agri-entrepreneurship is rapidly emerging as a critical component of Africa’s economic development.

Organizations like the Food and Agriculture Organization (FAO) and the Alliance for a Green Revolution in Africa (AGRA) among others, have been actively promoting entrepreneurial approaches to farming, providing support and resources to young farmers who are eager to innovate. Such support includes; funding and investment, technical assistance and knowledge transfer, market access, networking, and policy advocacy.

Women and Youth Leading the Change

Africa’s youthful population is a key driver of agri-entrepreneurship with over 60% of the population under the age of 25. There is a growing pool of energetic and innovative young people turning to agriculture as a viable career option. Young agri-entrepreneurs are bringing fresh ideas and modern techniques to the sector, helping to increase productivity and efficiency.

One of the most notable trends in African agri-entrepreneurship is the growing participation of women and youth. According to FAO, empowering women in agriculture could increase farm yields by up to 30%, reducing hunger and lifting millions out of poverty.

International organizations such as the African Union, Food and Agriculture Organization (FAO), United Nations Industrial Development Organization (UNIDO), and African Development Bank(AfDB)  among others have recognized the importance of involving women and youth in agriculture and have launched initiatives to support their involvement in agri-entrepreneurship. Programs such as Empowering Novel Agri-Business-Led Employment (ENABLE) co-funded by the African Development Bank (AfDB) and the Government of Kenya aim to equip Africa’s youth with the skills and resources needed to start and grow their agricultural businesses.

Technology as a Key Driver

Technology is one of the key contributors to the rise of agri-entrepreneurship across Africa. Precision farming, artificial intelligence, mobile-based financial services, and digital platforms for market access are empowering farmers with tools to improve productivity, reduce waste, and increase profits.

For example, platforms like M-Farm in Kenya provide farmers with real-time market prices, farm inputs access, and connect them directly with buyers, reducing the reliance on middlemen and increasing their profits. Hello Tractor is another notable example. Often dubbed the “Uber for farmers” in Africa, they use AI to connect tractor owners with farmers who need plowing services, thus sowing the seeds of smarter and more productive agriculture. In Nigeria, the startup Aerobotics uses drones and AI to provide farmers with an overview of their farms including, detecting pests and diseases before they spread and monitoring crop growth to optimize harvesting.

The integration of digital tools in farming has been especially critical in reaching smallholder farmers, who make up the bulk of Africa’s agricultural workforce.

According to the African Union’s Department of Rural Economy and Agriculture, these technologies are creating new opportunities for Africa’s agricultural sector by addressing challenges such as poor infrastructure, market volatility, and financial exclusion.

Financing the New Generation of Farmers

Access to finance has historically been a major barrier for African farmers, particularly young and small-scale producers. However, innovative financing models such as microloans, impact investment funds, and digital banking services are providing new pathways for funding.

Government initiatives and partnerships with international development organizations are also supporting access to capital for African agri-entrepreneurs. For example, the Africa Enterprise Challenge Fund (AECF) runs the “Investing in Women in Agribusiness” competition, which provides financial support and capacity-building to women entrepreneurs in agriculture. This initiative helps bridge the financing gap faced by women in agribusiness.

Sustainable Farming Practices for the Future

Sustainability is at the core of agri-entrepreneurship in Africa. Young farmers are increasingly adopting climate-smart agriculture and regenerative farming practices, which not only improve long-term yields but also mitigate the effects of climate change. These practices, such as agroforestry, crop diversification, and water conservation, are essential for ensuring that Africa’s agriculture remains viable in the face of environmental challenges.

The World Bank’s 2022 report highlights the importance of sustainability in African agriculture, noting that improved technologies and climate-smart agriculture systems improve soil health, enhance biodiversity, and contribute to resilience against climate shocks.

Agri-entrepreneurs are not only producing food but also safeguarding the environment, which aligns with global goals for sustainable development.

Conclusion

Despite the promising growth of agri-entrepreneurship in Africa, challenges remain. Infrastructure gaps, limited access to markets and finance especially from traditional financial institutions, and the high cost of adopting technology are significant hurdles for many agri entrepreneurs. However, the growing network of support from governments, NGOs, and the private sector is helping to bridge these gaps.

The opportunities for growth are immense. With an estimated 60% of the world’s unused arable land, Africa has the potential to become a global leader in agricultural production. The continent’s young population, coupled with the increasing adoption of technology and sustainable practices, makes it well-positioned to capitalize on these opportunities.

Agri-entrepreneurship is changing the face of the African agriculture sector by blending innovation, sustainability, and smart business strategies, a new wave of farmers is tackling some of Africa’s biggest challenges. With advancing technology and increasing support for agri-entrepreneurs, Africa is on track to build a sustainable and thriving agricultural future.

By Mercy Mumbua, Junior Agribusiness Consultant