Venture capital in Africa is being boosted by investments in companies connecting farmers and food producers to retailers (known as “midstream technologies”) according to an investment report that shows Africa’s tech startups raised US$ 1.1 billion in five years.
Venture capital in Africa is being boosted by investments in companies connecting farmers and food producers to retailers (known as “midstream technologies”) according to an investment report that shows African agrifood tech startups raised US$ 1.1 billion in five years. Last year, investments into agrifood tech – startups seeking to disrupt the global food and agriculture industry – Africa’s tech startups , in Africa hit US$ 482.3 million. Of this, 61 percent went to midstream technologies. In 2020 startups in this sector raised US$185 million. Venture capital firm, AgFunder, in its first Africa Agrifoodtech Investment Report, 2022 shows startups using software to fill in critical infrastructure gaps,
Africa’s tech startups , Including agribusiness marketplaces, raised US$293.7 million last year- highlighting the rising attractiveness of these ventures to investors. “Many new promising innovations to secure and improve the world’s food supply are starting to gain traction globally, as well as in African markets,” said Dutch lender, FMO ventures, in the report. The lender said that technology offers more cost-and-resource-efficient ways of addressing Africa’s persistent dependence on food imports and food insecurity. “We believe emerging agtech solutions have the potential to address challenges in current food production and distribution, and target end users ranging from the smallholder farmer to agri enterprises to the final consumer,
Source: This news is originally published by thecitizen