Will technology transform Africa's agriculture?

In a world where technology and innovation are synonymous with development, the agriculture sector in Africa is not exempt from the transformational power of modern advancements. Lois Sankey, the Head Agrifinance, Emerging Business at Diamond Bank, sheds light on the potential of technology to revolutionize agriculture in Nigeria and across the continent. With 70% of agricultural production relying on smallholder farmers stuck in subsistence farming, the need for mechanization and digital intervention is evident. Sankey highlights the staggering deficit of 10,000 tractors in Nigeria alone, emphasizing the critical role of such machinery in enhancing tillage speed, scale, and land utilization. Furthermore, the integration of softer technologies like artificial intelligence, drones, and robotics presents a new frontier in agricultural efficiency. Homegrown innovations like big drones are already making strides in Nigeria, offering capabilities ranging from plant mapping to pest detection and treatment. The deployment of drones not only streamlines planting and monitoring processes but also optimizes land usage and boosts overall production output. As digital technologies continue to permeate primary production, the focus extends to enhancing processing, sales, and distribution, marking a holistic transformation of the agricultural value chain. Amidst these advancements, lending to the agricultural sector sees a surge in demand, driven by the need for precision farming data and operational insights. Drone technology, in particular, emerges as a game-changer for financial institutions, facilitating accurate assessment of farm conditions, crop yields, and potential risks. The efficiency and reliability of drone-generated reports serve as a catalyst for increased funding to agricultural ventures, bolstered by a deeper understanding of the operational landscape. Notably, the benefits of technology adoption extend to both smallholder farmers and large-scale enterprises in distinct ways. While larger players may invest in personalized drone solutions for vast land holdings, smallholders leverage shared services to access tractors, harvesters, and drones on a rental basis. Collaboration among farmers in clustered regions enables efficient utilization of machinery and digital tools, ultimately democratizing access to agricultural advancements. Sankey emphasizes the importance of intervention funds to support the local development of agricultural technologies, ensuring affordability and widespread availability. By nurturing a conducive environment for innovation, financial institutions can propel the agricultural sector towards sustainable growth and technological integration. With a concerted effort to bridge the digital divide and foster inclusive access to transformative technologies, Africa's agriculture stands poised for a paradigm shift towards enhanced productivity, efficiency, and economic prosperity.