How agtech, AI, and fintech can fix Africa’s food systems

• Experts argue that the combined impact of agtech, AI, and fintech systems can transform Africa’s food systems.
• Already, AI predicts pests via apps such as 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 boost resilience. Brookings highlights AI’s inclusive potential for smallholders.
• With patient capital and AI-fintech hybrids, Africa’s food systems could feed 2.5 billion by 2050 sustainably.

In October 2025, Nairobi buzzed with optimism at the 9th Annual Learning Event (ALE), hosted by Mercy Corps AgriFin in partnership with Briter Bridges. Over 300 participants from more than 20 countries gathered to confront a stark reality: despite agriculture employing over 60 per cent of Africa’s workforce and contributing up to 25 per cent of GDP in many nations, agtech innovators struggle for capital. A recurring theme was the persistent financing gap for agtech ventures, exacerbated by the continent’s deep reliance on smallholder farming amid climate shocks and population growth.

Briter Bridges, an intelligence firm tracking emerging markets, presented early findings from its upcoming AgTech in Emerging Markets report at the ALE. The data painted a global picture but highlighted Africa’s acute challenges: funding concentrated in on-farm hardware like irrigation, limited diversity in instruments, a treacherous “valley of death” for scaling, and scarce exits.

Yet, amid downturns, glimmers of hope emerged—especially in ag-fintech and AI-driven solutions blending finance with technology to transform food systems.

Africa’s food systems: financing gaps amid climate change

Africa’s agriculture feeds a billion people but faces existential threats. The World Bank estimates a $117 billion annual financing gap for agri-SMEs and smallholders, while climate change could slash yields by 20-30 per cent by 2030 without adaptation.

FAO reports 257 million Africans hungry in 2023, with malnutrition costing 11 per cent of GDP. Enter agtech: digital tools promising precision farming, resilient crops, and efficient markets. Integrated with AI for predictive analytics and fintech for inclusive credit, these innovations could boost yields 30 per cent by 2025, per industry projections.

Briter’s State of AgTech Investment in Africa 2024 reveals a decade of progress: $1.56 billion across 700+ deals for 400+ startups from 2014 to Q3 2024. Post-2022 peak, funding stabilized at $215 million in the last year—50 per cent above 2019-2020 levels but down from highs due to global VC caution. AgFunder’s 2024 report shows H1 recovery: $145 million, up 1.6 per cent YoY, with full-year at $192 million.

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Trends in Africa’s food systems financing landscape, per Briter Bridges

On-farm focus: Hardware such as solar irrigation dominates, capturing most funding. Kenya’s SunCulture exemplifies this, scaling pay-as-you-go pumps.

Instrument experimentation: Africa leads in concessional debt and hybrids. DFIs cover 70 per cent of over $1 million deals.

Valley of death: Early-stage reliant on fragmented rounds; post-farm funding plunged 80 per cent.

Scarce exits: Global issue, but Africa sees ag-fintech liquidity, like Pula’s $20M Series B.

Globally, AgFunder notes developing markets surged 63 per cent to $3.7 billion in 2024, bucking declines. Africa lags at 5 per cent, but ag-fintech leads with 41 per cent ($65 million).

AI and fintech are game-changers. AI predicts pests via apps such as 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 boost resilience. Brookings highlights AI’s inclusive potential for smallholders.

Success stories

Success stories abound. Pula insured 15 million farmers; Complete Farmer connects Ghanaian growers to markets while Nigeria’s Releaf processes palm oil efficiently.

Some challenges, however, still persist. For instance, there is still geographic concentration (Kenya 53 per cent, Nigeria/Egypt/Ghana follow), gender gaps (women-led <1.5 per cent), infrastructure deficits. CPI warns venture capital is modest against $1T global shortfall.

Briter urges holistic approaches: crowd-in commercial capital via semi-commercial funds. AgBase platform tracks opportunities.

At the moment H1 2025 statistics show renewal: on-farm digital tools, inclusive practices. With patient capital and AI-fintech hybrids, Africa’s food systems could feed 2.5 billion by 2050 sustainably.

As ALE closed, Sieka Gatabaki of Mercy Corps AgriFin stressed localized intelligence for impact. The fusion of agtech, AI, and fintech isn’t just closing gaps—it’s seeding a resilient future.