Technology is transforming the way we produce, consume, and trade agricultural products. This change is also creating opportunities to enhance productivity and sustainability in agricultural production chains, which have managed to address some of the barriers to international food security.

Understanding Technological Revolution in Africa

Technology can create applications that play a huge role in agriculture. It can also be utilized to examine, assess, record, and evaluate data collected in food systems to reduce input, increase output, and advance information flow.

In 2017, approximately 16% of African agricultural food imports and 25% of agricultural food exports were traded within Africa. This is a clear indication that there is potential to enhance intra-regional trade. However, Africa continues to struggle with food safety and security. Thus, combining trade integration and advanced technologies is crucial to help countries in Africa improve their agricultural sectors and develop the economy.

Digital Technologies Can Revolutionize Agriculture in Africa
Technological transformation is also bringing agricultural transformation to Africa. Low-cost drones are helping African farmers make production decisions, land registration programs are utilizing distributed ledger technology (DLT), and pest and disease management projects are using mobile phones to deliver animal vaccine and management information to last-mile farmers.

Digital trading is allowing access to new markets in Africa as well, with over 260 operational e-commerce startups integrating rural communities and linking producers to consumers. Digital trade finance can also close the global trade finance gap of $1.6 trillion, in which Africa accounts for around $100 billion. Moreover, digital solutions may even increase access to trade finance for MSMEs, which are usually hit the hardest by this gap.

DLT, along with smart contracts, can also provide a platform for parties to exchange trade information digitally while auto-executing payments to lower the costs of trade finance. Moreover, digital trade certificates can facilitate trade by reducing fraud, eliminating paper documentation, and speeding up border procedures to reduce costs.

While agricultural revolution and trade technologies may not be attainable in Africa at the moment, countries can still create digital ecosystems that will assist farmers and entrepreneurs in the future. Advanced technologies will help Africa take advantage of great upcoming opportunities.

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