The potential of digitalization in agriculture to boost yields across Sub-Saharan Africa
Addressing hunger, poverty and environmental degradation
Hello everyone,
as the population in Sub-Saharan Africa continues to grow, the region faces a major challenge with low agricultural yields.
Traditionally, increasing farm output in the region has meant using more land, which harms natural habitats.
However, technology and digitalization hold great promise for improving yields in an environmentally sustainable way.
In this deep dive, we'll look at the current challenges and shine a light on some innovative initiatives and companies leveraging technology to address this pressing issue such as:
Hello Tractor, the “Uber” for tractor owners and farmers in Nigeria, optimizing tractor use through a booking app.
Agrihawk, specialized in precision aerial crop science, providing drone services for example for spraying.
Farmerline, delivering farming advice, weather forecasts, market prices, and financial tips via a voice service and SMS platform.
Let’s dive in.
🕐 In a Hurry? Here's a 1-Minute Summary:
Low Productivity: Agricultural productivity in Sub-Saharan Africa is considerably low, with crop yields often below 25% of their potential due to limited access to improved seeds, fertilizers, and efficient farming practices.
Increased Land Use: Rather than improving yields, the region has expanded arable land usage to boost output, tripling cereal production since 1980 mainly through increased land use, which has led to significant environmental impacts including loss of natural habitats.
Digital Solutions: Digital technologies offer significant potential to transform agriculture by enhancing productivity and sustainability, managing inputs more efficiently, and improving market access for smallholder farmers.
FAO 1000 Digital Villages Initiative: This initiative by the FAO aims to integrate digital technologies in rural areas to boost agricultural productivity, enhance food security, and improve the quality of life for farmers through technology integration, capacity building, and improved market and data access.
Spotlight on Digitalization: Companies like Hello Tractor, Agrihawk, and Farmerline are driving agricultural digitalization in Africa by increasing equipment accessibility and providing crucial agricultural data and resources.
⏳ Ready for a Deeper Dive? Here's the Breakdown:
Situation: Low agricultural productivity
The agricultural productivity in Sub-Saharan Africa is strikingly low compared to global averages: crop yields in the region often stagnate at less than 25% of their potential.
This low productivity is attributed to limited access to improved seeds, fertilizers, technologies and efficient farming equipment and practices.
As a result, a significant portion of the region’s labor force remains in agriculture with low earnings, contributing to high rates of poverty.
Complication: Increase in Arable Land Usage
Sub-Saharan Africa has primarily increased its agricultural output by expanding the amount of arable land used, rather than through improving yields.
For example, cereal production in Sub-Saharan Africa tripled from 1980 to 2018, but this was mainly due to land use more than doubling from 48 to 112 million hectares, rather than significant improvements in yield, which have only increased by about 30% during the same period.
Whereas in South Asia land use did not change since 1980, but yields have more than doubled.
This expansion of farmland has led to substantial environmental consequences, including the loss of natural habitats, which is a significant concern given the biodiversity of the region.
Not being able to increase output through higher yields will increase hunger, poverty and environmental degradation.
Solution: Potential of Digital Tools
Digital technologies hold significant promise for transforming agriculture in Sub-Saharan Africa by improving productivity and sustainability.
Digital tools can help manage agricultural inputs more efficiently, provide real-time data for better decision-making, and improve market access for smallholder farmers.
The FAO’s 1000 Digital Villages Initiative is an example of how digital platforms are being utilized to enhance agricultural practices.
These technologies not only aim to increase yields but also reduce the environmental impact by optimizing resource use and reducing the need to expand into new lands.
💡💡 Spotlight: FAO 1000 Digital Villages Initiative
The FAO 1000 Digital Villages Initiative is a project launched by the Food and Agriculture Organization of the United Nations (FAO) aimed at transforming rural areas by integrating digital technologies into agriculture. The initiative seeks to enhance agricultural productivity and sustainability, improve food security, and raise the quality of life in rural areas through digital solutions.
Key aspects of the initiative include:
Technology Integration: Implementing a range of digital tools, such as mobile applications, drones, and remote sensing technologies, to assist in farm management, monitoring crop health, and optimizing resource use.
Capacity Building: Educating and training farmers and local agricultural workers on how to use these digital technologies effectively, ensuring they can maximize the benefits.
Market Access: Improving farmers' access to markets through digital platforms that facilitate better pricing, trading, and logistics management.
Data Access: Providing farmers with real-time information related to weather, soil conditions, and agricultural best practices, helping them make informed decisions that enhance productivity and sustainability.
The initiative reflects a broader trend towards digitalization in agriculture and is part of FAO’s efforts to promote more efficient, inclusive, resilient, and sustainable agrifood systems across the developing world.
💡💡 Spotlight: 3 companies driving digitalization in African agriculture though increasing accessibility of equipment, technology and information
We want to shine the spotlight on several companies are actively working to improve agricultural yields in Sub-Saharan Africa through digitalization.
1. Hello Tractor (Nigeria)
Hello Tractor is a Nigerian company that leverages tech to enhance the efficiency, maintenance, and profitability of tractors.
It provides a platform where tractor owners can connect with smallholder farmers optimizing tractor usage and increasing agricultural productivity.
Their service includes a booking app through which farmers can schedule tractor services, while owners can manage their fleet and track performance.
Learn more here.
2. Agrihawk (South Africa)
Agrihawk specializes in precision aerial crop science, providing advanced agricultural drone services and products in South Africa.
As an authorized DJI dealer, the company offers drone spraying and surveying services to enhance farm productivity and profitability.
Agrihawk is committed to integrating the latest technologies in agriculture, supporting farmers with innovative solutions to improve their operations.
Learn more here.
3. Farmerline (Ghana)
In West Africa, Farmerline provides a voice service and SMS platform that delivers crucial farming advice, weather forecasts, market prices, and financial tips directly to farmers.
Through its Mergdata platform, Farmerline supports agribusinesses, food manufacturers, NGOs, and governments by offering actionable intelligence to create profitable opportunities for farmers.
The company enhances the agricultural ecosystem by aligning supply with demand, integrating innovative financing, and leveraging flexible technology to ensure comprehensive support to growers and dealers alike.
Learn more here.
Sources to learn more:
Increasing agricultural productivity across Sub-Saharan Africa is one of the most important problems this century, Our World in Data
Winning in Africa’s agricultural market, McKinsey & Company
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Thanks for reading,
Carolin
Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.