Technology has revolutionized farming and trading globally, but its impact on Africa has been particularly significant. The continent has seen a rapid rise in digital adoption, with the number of internet users growing by 20% annually, according to a report by the International Finance Corporation. The adoption of technology has had a significant impact on the agriculture and trading sectors, with the potential to drive economic growth and create new opportunities for farmers and traders.
The impact of technology on farming in Africa is significant. According to a report by the African Development Bank, the adoption of precision agriculture technologies can increase crop yields by up to 300% and reduce water usage by up to 60%. This is particularly important in Africa, where food insecurity is a major challenge. The report also estimates that the digitalization of agriculture could generate $20 billion per year in additional income for African farmers.
The adoption of digital technology in agriculture and trading has had a profound impact on Africa’s economy so far. According to the World Bank, agriculture contributes to 23% of Africa’s Gross Domestic Product (GDP) and employs 65% of the continent’s labor force. This highlights the critical role that agriculture plays in Africa’s economic development.
Digital technology has helped African farmers to increase their productivity, efficiency, and profitability. The adoption of precision agriculture technologies such as drones, soil sensors, and satellite imagery has helped farmers to make better decisions about planting, watering, and fertilizing their crops. According to a report by the Alliance for a Green Revolution in Africa (AGRA), the use of drones for spraying pesticides and fertilizers can increase crop yields by up to 82%.
Mobile technology has also played a significant role in the digital transformation of African agriculture. Mobile money platforms such as MTN Mobile Money have made it easier for farmers to access credit, buy and sell goods, and receive payments for their crops. According to a report by GSMA, mobile money transactions in Sub-Saharan Africa grew by 14% in 2020, reaching a total of $490 billion.
In addition, the digitalization of trading has opened up new opportunities for African traders to reach global markets. According to a report by the United Nations Conference on Trade and Development, the growth of e-commerce in Africa has the potential to increase intra-African trade by up to 25%, creating more jobs and economic opportunities.
The digital divide in Africa remains significant. According to a report by the World Bank, only 28% of Africans have access to the internet, compared to a global average of 59%. This highlights the urgent need for training and resources to bridge the digital divide and ensure that farmers and traders in Africa are not left behind in the digital age.
The COVID-19 pandemic has highlighted the importance of digital technology in Africa’s economic development. According to a report by the United Nations Development Programme (UNDP), the pandemic has disrupted Africa’s food systems, with an estimated 30 million people at risk of food insecurity. The adoption of digital technology in agriculture and trading has helped to mitigate the impact of the pandemic, enabling farmers and traders to continue their businesses despite the disruptions caused by lockdowns and border closures.
Digital literacy is therefore crucial for the success of farming and trading in Africa. The ability to use digital tools and skills such as precision agriculture, mobile money, and e-commerce can help farmers and traders to increase productivity, efficiency, and profitability. For example, mobile money platforms such as Opay have enabled smallholder farmers in Nigeria to receive payments for their crops quickly and securely, reducing the risk of fraud and theft.
However, digital literacy is not just about using technology. It also involves understanding how to protect businesses from cyber threats. According to a report by Serianu, the cost of cybercrime in Africa is estimated to be $3.5 billion per year, with small businesses being particularly vulnerable. It is therefore crucial for African businesses to invest in cybersecurity measures and training to protect themselves from these threats.
To bridge the digital divide and promote digital literacy, governments, organizations, and stakeholders need to invest in training and resources. This can include initiatives such as community ICT centers, e-learning platforms, and capacity-building programs for farmers and traders. According to a report by the International Finance Corporation (IFC), digital agriculture has the potential to create 1.5 million jobs and generate $15 billion in annual revenue by 2030. The report recommends the adoption of digital tools such as blockchain, big data, and artificial intelligence to improve the efficiency and transparency of agricultural value chains.
The African Continental Free Trade Area (AfCFTA) agreement, which came into effect on January 1, 2021, aims to create a single market for goods and services across the continent, with the potential to boost intra-African trade and economic growth. Digital technology can play a significant role in the implementation of the AfCFTA, enabling traders to connect with buyers and sellers across the continent and facilitating cross-border transactions.
Tech Herfrica is using various initiatives to bridge the digital divide, including digital financial literacy programmes that are aimed at enhancing the capacity of rural farmers and traders in underserved communities to leverage digital financial services that will aid economic empowerment and social inclusion. The organization is providing farmers and traders with the skills and knowledge needed to leverage digital technologies, enabling them to increase productivity, efficiency, and profitability. With continued support from governments, organizations, and stakeholders, initiatives like those implemented by Tech Herfrica could play a vital role in driving economic growth and creating new opportunities in African farming and trading.