Agriculture remains the largest sector in Nigeria contributing an average of 24% to the nation’s GDP over the past seven years (2013 –2019). In addition, the sector employs more than 36% of the country’s labour force, a feat which ranks the sector as the largest employer of labour in the country.
The effect of agricultural advancement spreads all through the whole life pattern of farming production. From adopting reasonable development practices and improving harvest quality to re-designing the supply chain with more prominent productivity, agri-tech companies are set to make huge gains with the integration of innovation in the sector.
Today, multiple startups are changing the landscape of agriculture in Nigeria with the use of technology. By breaking into the country’s agricultural landscape using newer business models, not will only these companies create a viable business model but will also improve the farmer’s income and output.
While there are many agri-tech companies trying to change the trends and models in the agricultural sector, this article details the major problem faced by these agri-tech start-ups.
Funding
The agri-tech space is often the least funded sector in the tech ecosystem compared to fintech, ed-tech, insure-tech, etcetera. A significant number of agri-tech startups on the continent are at their nascent stage and require adequate funding to scale up their production. As a result, the few product rollouts they have in the market tend to be expensive for a smallholder farmer due to a lack of funding to help subsidize cost in cases where mass production is non-existent.
Utilization of Technology
With regards to agri-tech, there are issues faced by the end-users too. Also, the high cost of some agri-tech products and services is another reason for their low adoption rate. There is next to zero innovation adoption here.
Unbending Old Models
One of the significant explanations behind the dismissal of financing for agri-tech companies has been the models of action. The current situation is too rigid that it is hard to break and scale the new business plans. There is an assumption that agriculture can’t have a proper model and when the business models don’t meet the expectations, the investors move back.
Education
Education plays a vital role in Africa’s rapidly changing technological environment. Technological solutions rendered by agri-tech companies often need a degree of technical know-how, which is made easier by having a formal education. For example, the use of improved seedlings, irrigation technologies, vertical farming, aquaponics, chemical fertilizers, etcetera requires a level of education. Farmers with this kind of education are more likely to adopt technology and innovations rapidly than their less-educated counterparts.
