Kenya has signed a deal with British-based investment group United Green Group (UG) to reduce the country’s dependence on food imports by $200 million (Sh26 billion) annually over the next five years, reports Business Daily Africa. The deal will deliver Agri-fin-tech services, high-productivity climate-smart farming, and state-of-the-art agro-industrial facilities to rural communities in Kenya, contributing materially to food security in the region. In addition, the investment will support the Kenyan government’s commitment to agricultural transformation, increased productivity and output, and inclusive growth of local agriculture and associated industries.
The joint venture with Kenyan company Victoria Green Invest will focus on high-value crops such as rice, cotton, sunflower, soybean, and maize to generate foreign exchange and feed local consumer and industry demand. The deal was signed between Kenya’s Trade Cabinet Secretary Moses Kuria, Kisumu County Governor Prof Peter Anyang’ Nyong’o, and United Green Group Chief Investment Officer Albrecht Frischenschlager.
Kenya: Africa’s Upcoming AgTech Powerhouse?
The Food and Agriculture Organization of the United Nations (FAO) has launched an initiative in collaboration with the Yield Lab Institute to assess the challenges facing AgTech-focused businesses in East Africa. The assessment, which focused on Kenya, Rwanda, and Uganda, aimed to identify options to improve the enabling environment for AgTech innovation and technology.
The assessment found that Kenya had the highest scorecard rating of 68.6 among the three countries, indicating it had the best-performing AgTech ecosystem. However, the assessment also revealed that the AgTech ecosystem in Kenya could be further strengthened by streamlining policies around start-ups and dedicating more resources to the AgTech space. Furthermore, the limited market size in Kenya is a significant challenge for start-ups looking to scale out of the marketplace and find business opportunities in neighboring ecosystems. The FAO initiative highlights the need for a more supportive ecosystem for AgTech innovation and technology in East Africa to help improve food security and support sustainable agriculture.
The adoption of AgTech innovations in Kenya’s agriculture sector is predicted to drive better income opportunities, encourage young people to stay in the sector, and boost Kenya’s finances. Only 42% of registered farmers and pastoralists in Kenya use digital solutions, and most early adopters are young farmers. As value chains become more productive and efficient, small and medium agri-enterprises will have new opportunities to expand into regional and global export markets. Furthermore, digitalization will drive business formalization, positively impacting formal revenue generation from the sector.
However, there are still critical gaps that technology alone cannot fix. Better roads, access to quality seeds, extension services, and effective logistics and transportation services are crucial to improving the agriculture sector’s performance. The adoption of AgTech solutions in Kenya’s agriculture sector has the potential to bring about significant positive change. Still, it will require a holistic approach to address farmers’ challenges.
Photo by Amani Nation on Unsplash
1 Comment