Africa’s agricultural sector, which, according to the World Bank, contributes 32% to Africa’s GDP and provides employment for 65% of the continent’s labour force. In many African countries, as much as 85% of the workforce is employed in the agricultural sector. Furthermore, an estimated 38% of Africa’s working youth are currently engaged in agriculture. In recent years, however, a new player has emerged to disrupt the status quo: agri-fintech. This intersection of agriculture and financial technology is revolutionising the way smallholder farmers access capital, markets, and logistics solutions.
Agri-fintech platforms offer financial inclusion tools that help farmers obtain credit, insurance, and investment opportunities through digital channels. This innovation is not just modernising agriculture but has become a strategic lever in Africa’s push towards food self-sufficiency and economic resilience.
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In the first half of 2024 alone, African agri-fintech startups attracted an impressive $145 million in investment, according to the Africa AgriFoodTech Investment Report by Disrupt Africa. This marked a 1.6% increase from the same period in 2023. The Agribusiness Marketplaces & Fintech category emerged as the leading vertical, securing 41% of total investment and 36% of all deals.
Kenya led the pack, receiving $83 million across 19 deals, accounting for 53% of the continent’s total. Nigeria followed with 10% of the share, signalling a shift in regional innovation hubs. However, while the total value of funding has grown, the number of deals has dropped by 27%, reflecting investor caution and increased demand for impact-driven, scalable business models.
According to the World Bank, Africa needs to invest at least $315 billion annually by 2030 in agri-value chains to meet its food security targets. Agri-fintech platforms are expected to play a central role in filling this gap, especially in financing and market access.
ThriveAgric: Empowering Smallholder Farmers
Nigeria’s ThriveAgric is one of the continent’s most prominent agri-fintech platforms. Founded in 2016, the company uses data science and machine learning to optimise financing for smallholder farmers. By aggregating thousands of farmers into groups and connecting them to investors, ThriveAgric ensures timely input provision, training, and guaranteed offtake.
As of 2024, ThriveAgric has supported over 500,000 farmers across 22 Nigerian states. The company recently partnered with Rabobank to introduce agroforestry initiatives, integrating fruit tree planting with staple crop farming. This model enables carbon credit generation, allowing farmers to tap into global climate finance.
In 2022 alone, the company raised $56.4 million in debt funding to deepen its reach. According to CEO Uka Eje, the model is designed to build long-term financial independence and sustainability for rural farmers.
Twiga Foods: Optimising Food Distribution
Kenya’s Twiga Foods provides a real-time example of how technology can simplify complex food supply chains. Established in 2014, Twiga connects farmers directly with urban vendors via a mobile platform, thereby eliminating exploitative middlemen.
By using GPS, mobile payment systems, and AI for demand forecasting, Twiga has reduced post-harvest losses by over 30% and improved supply chain efficiency by up to 50%. In 2023, Twiga Foods raised $50 million to expand its operations in East and West Africa.
FarmCrowdy: From Crowdfunding to Integrated AgTech
Launched in Nigeria in 2016, FarmCrowdy pioneered agricultural crowdfunding by linking individuals to vetted small-scale farmers. Over the years, the company has evolved into a full-fledged agritech firm offering end-to-end solutions across the value chain.
FarmCrowdy’s two subsidiaries, FC Foods and FC Shops, are designed to create efficient marketing channels and reduce food waste. The platform has so far reached over 120,000 farmers and facilitated the cultivation of more than 20,000 hectares of farmland.
By integrating data analytics and remote sensing, FarmCrowdy enables precision agriculture, improving yield by up to 40% and cutting costs by 30%, according to their 2023 performance report. It has also partnered with the Central Bank of Nigeria to distribute subsidised inputs under the Anchor Borrowers’ Programme.
Market Trends and Policy Frameworks
Despite these advancements, Africa’s agri-fintech ecosystem faces structural and regulatory hurdles. Digital literacy remains low in many rural areas, while mobile penetration, though improving, is still uneven. According to GSMA’s 2024 Mobile Economy Report, smartphone adoption in Sub-Saharan Africa is projected to rise from 51% in 2023 to 88% by 2030, which will significantly enhance fintech adoption.
In response, African governments and international donors are stepping up. The African Continental Free Trade Area (AfCFTA) provides a policy framework for digital trade in agricultural commodities. Additionally, the African Union’s Comprehensive Africa Agriculture Development Programme (CAADP) identifies agri-fintech as a priority area for improving market access and agricultural financing.
Meanwhile, organisations like the Alliance for a Green Revolution in Africa (AGRA) and the Bill & Melinda Gates Foundation are actively funding agri-fintech pilots and research across East and West Africa. The Food and Agriculture Organisation (FAO) also emphasises that digital financial solutions are critical to achieving Sustainable Development Goal 2: Zero Hunger.
Opportunities and Pitfalls
The promise of agri-fintech is immense, but its sustainability hinges on inclusivity, accountability, and infrastructure. Platforms must avoid the risk of digital exclusion, where only tech-savvy or urban-adjacent farmers benefit. There are also concerns over data privacy, exploitative lending rates, and greenwashing in climate finance mechanisms.
Nevertheless, the trajectory is clear. Agri-fintech is not just a tech trend—it is a structural shift in how African agriculture is funded, organised, and commercialised. According to McKinsey, the African agri-tech sector could create up to $500 billion in value by 2030 if current momentum is sustained and scaled.
Agri-fintech represents one of the most promising avenues for tackling Africa’s enduring food insecurity. With platforms like FarmCrowdy, ThriveAgric, and Twiga Foods leading the way, millions of farmers are gaining access to the capital, knowledge, and markets they need to thrive.
The sector’s growth will depend on deliberate policy alignment, continued investment in digital infrastructure, and inclusive design that puts farmers at the centre. If scaled correctly, agri-fintech could be Africa’s most impactful innovation yet—one that not only feeds the continent but also transforms its economic destiny.
