Reading time:4 min read
Climate Tech for Agriculture: how technology can help tackle climate change in Africa.
Food is not only something we need every day, it is also a complex system of actors and processes that account for one-third of greenhouse gas emissions, according to a report by FAO; at the same time, food production is affected by the adverse impacts of climate change.
Conversations around climate change are not uncommon in our sector; the reality of its effects on food security and the livelihood of rural households is more and more visible. Yet, climate action is not scaling up rapidly enough. With a growing population projected to reach 10 billion in 2050, there is more pressure on the food being produced, and a reduction in crop yield would cause more harm to an already distorted food system.
At this crossroads, looking at the larger picture of food and its role in climate change is essential. Agriculture has the potential to accelerate climate action, so how do we shape a food system that nourishes people, restores our environment, and adapts to changing weather? Specifically, how can climate technology transform our food systems to be climate smart, ensuring we mitigate and adapt to the impact of climate change?
In Nigeria for example, smallholder farmers are experiencing climate disasters, including increased flooding as well as drought across some states, which is made worse by a lack of access to seasonal climate and weather information services. The implication of this is a significantly lower production volume across the agricultural value chain. Additionally, one-third of the world’s droughts occur in sub-Saharan Africa, with Ethiopia and Kenya currently enduring the worst droughts in at least four decades. Torrential rains and floods are severely impacting countries such as Chad.
The time to innovate around Africa’s agriculture in the face of a climate crisis is now, however, it will require significant investment. In Africa, climate tech investment is already booming, with more and more agritech startups facing food-related climate challenges head-on. A report by PwC shows that in 2021, investments in climate tech surged globally to $87.5 billion from $28 billion in the second half of 2020. Investment in technologies including AI, IoT, satellite & sensor data, crop insurance and other innovations, can support farmers to better manage climate risks and help agriculture become more sustainable and resilient to climate change.
Through climate technology, increased productivity can be achieved by offering tools and services that allow farmers to prepare and respond to weather incidents, implement precision agriculture, access new varieties of seed suited to new environments, storage facilities to prevent food loss, and access remote soil analysis that helps lower emissions and improved yields.
Beyond the investment in the tools that allow farmers to adapt to climate change, there needs to be mitigation of further emissions and deforestation to prevent further disruptions to climate and the environment. Appropriate use of agricultural inputs is key to reducing emissions, and knowledge transfer can be supported by agritech as well. Furthermore, the traceability of traded commodities to farmers can identify and mitigate deforestation risks, as is also required by upcoming EU due diligence. Traceability will likely become a requirement for access to markets.
But investing in climate technologies is only possible if the farmers have the appropriate access. We have to intensify farmers’ sensitization on climate-smart practices to help them adapt better to the new realities and gradually build resilience to survive its impact on their livelihoods. Farmers need more access to crop insurance that protects them against extreme weather events and other risks.
There are agritech companies already working on these strategies. AFEX has utilized technology in numerous ways to ensure transparency and efficiency in several commodity value chains. As with many other agritech companies that are working to transform Africa’s food systems, AFEX’s technology investments are also rightfully expanding to climate solutions. An initial frontier is the combination of partnerships and technology to deliver relevant data to farmers to enable them to combat climate shocks. On the other hand, AFEX’s continued deployment of financing structures and instruments to unlock funding for various value chain operations in African agriculture remains key as an evolving answer to the questions on climate finance on the continent.
We continue to rethink the future of Africa’s food system in the face of climate change. Our bet is on the prioritization of a data-rich environment with adequate funding being unlocked to drive innovations for adaptation, and technology remains at the center of these endeavors.
Written by Sanne Steemers, President, Rest of Africa, AFEX.