Africa is losing out of global investment in agriculture technology

A fast growing population. Worsening food insecurity problem. 60 per cent of the world's agricultural land and a fast expanding tech ecosytem. All these make Africa a ripe ground for investment in agriculture. But only a small fraction of global investments in agriculture startups are going to the continent.

Investors are backing at least 1,316 agriculture technology startups, according to a database maintained by business analytics platform CBInsights. These startups have attracted at least $37.8 billion in funding.

1. Only one percent of global agritech investment in Africa

Agriculture tech investment per capita

North America

40.1 %

Europe

7.3

Oceania

5.6

South America

2.4

Investment per capita shows

Oceania is way ahead of Africa

Asia

1.4

Africa

0.6

40.1 %

North America

Europe

7.3

Oceania

5.6

South America

Investment per capita shows

Oceania is way ahead of Africa

2.4

1.4

Asia

Africa

0.6

When weighed againt population, the investment disparity becomes obvious.

Even with the lowest amount of investment, Oceania has five times more dollars of investment per capita than Africa

Infrastructure cost is often cited as a reason investors are still wary of investing in Africa

2. The top gainers of agritech investment in Africa

Most of the agriculture tech startups on the continent are based in the main economic hubs like South Africa, Kenya and Nigeria aided by a growing tech ecosystem.

3. Biotech is taking all the big bucks

Out of every $100 invested in agriculture technology startups, $45 go to businesses focused on biotech as the need to move the world towards sustainable food production systems expands.

But so far, Africa is missing out on this.

4. Where agriculture biotech investors took $17.3 billion

So far, North America, especially the U.S. has most of the global market share of agriculture biotech in its grips due to the barriers of entry that come with biotech businesses.

5. Where investors are putting their money in Africa

Africa accounts for about 60 percent of global agriculture land. However, with advancement in biotech, it is unclear how much this would help to attract investments in the near future.

Find data analysis for this visualization here.