Technology – particularly artificial intelligence (AI) – plays a critical role in enhancing agricultural productivity and reducing poverty across the continent.
This is one of the findings from a white paper highlighting the trends shaping the agricultural landscape in Africa, launched by DHL Express Sub-Saharan Africa (SSA) study in collaboration with the Gordon Institute of Business Science (GIBS) Centre for African Management and Markets (CAMM).
The African Agritech: The State of Play and Potential for Prosperity report reveals that improvements in agricultural productivity have a disproportionately positive effect on poverty alleviation in developing nations.
A 1% increase in agricultural total factor productivity (TFP) correlates with a 1% decline in the population living in extreme poverty, highlighting agriculture’s potential as a powerful tool for economic development.
As Africa’s population continues to grow, the agricultural sector stands at a crossroads, facing both challenges and unprecedented opportunities. The industry is vital for sustainable development and economic growth in Africa.
Agriculture has long been a cornerstone of the continent’s economy, accounting for approximately 15% of output, which is significantly higher than the global average of 5%.
For Africa to thrive, its agricultural sector must be optimally used to drive growth, especially given the rapid population increase projected for the region.
The paper highlights the need for the industry to consider innovative models and management strategies. Innovation and technology are crucial for enhancing agricultural output and efficiency, which can lead to improved economic conditions across the continent.
“This paper highlights our commitment to supporting sustainable growth and innovation in the agricultural sector, particularly on the African continent,” says Hennie Heymans, CEO of DHL Express SSA.
Ian Macleod, a member of the CAMM research team, adds: “We knew agritech was a powerful driver of prosperity, but we were impressed with what we unearthed during the research. Tech is being used in amazing ways to improve everything from soil management and crop spraying to transportation and fire detection.”
The research paper can be downloaded here (https://apo-opa.co/3Z5FbaN).