Digital agriculture faces sustainability test as donor funding tightens

By Newsflash Writer

Africa’s digital agriculture sector is under pressure to move beyond donor-funded pilot projects and establish sustainable businesses capable of delivering long-term benefits to millions of smallholder farmers.

As development funding becomes increasingly constrained, stakeholders are shifting their focus towards commercially viable business models, stronger partnerships and integrated digital services that can improve farmers’ productivity, incomes and resilience.

The challenge will take centre stage at the 10th AgriFin Learning Event, scheduled for October 27, 2026, at Argyle Grand Hotel in Nairobi, where investors, technology providers, financial institutions and development partners will examine how digital agriculture can achieve sustainable growth.

The event, organised by Prosper Global AgriFin, formerly Mercy Corps AgriFin, will be held under the theme “Leveraging Evidence for Connected, Scalable and Inclusive Digital Agriculture”.

It comes at a critical moment for the sector, with advances in artificial intelligence, data infrastructure and climate services creating new opportunities while raising questions about the long-term financial viability of digital solutions.

The meeting will also mark the close of the AgriFin Digital Farmer II programme, which received funding from the Gates Foundation.

Investment shifts towards viable business models

A report commissioned through Mercy Corps AgriFin’s AgBase programme and developed by Briter and ISF Advisors provides evidence of the changing investment landscape.

The Agtech Investment in Emerging Markets report tracked US$4.39 billion in agricultural technology funding across 17 emerging markets between 2023 and the third quarter of 2025. It covered more than 900 deals, 700 funded companies and 900 funders.

According to the report, investment in agricultural technology has stabilised following the market correction after 2022, although recovery has been uneven across markets.

The findings highlight differences in capital availability, commercial maturity and the viability of business models, suggesting that investment strategies must be tailored to individual markets rather than treating emerging economies as a single sector.

Discussions at the Nairobi event will examine how different types of capital can support agricultural technology businesses at various stages of growth, while ensuring development funding helps establish evidence, unlock markets and reduce barriers to commercial sustainability.

The focus will be on deploying capital effectively rather than simply increasing investment, with particular attention to businesses capable of continuing to serve farmers beyond the lifespan of donor-funded projects.

Since 2019, Prosper Global AgriFin has worked with nearly 200 financial institutions, agricultural technology companies, digital platforms and governments across Africa and Asia to expand digitally enabled financial and advisory services.

Connecting services around farmers

Beyond financing, the event will explore how digital platforms can connect services that farmers often access separately, including agricultural advice, quality inputs, market information, weather updates, insurance and financial services.

Fragmented systems can leave farmers navigating disconnected providers, limiting their ability to access timely information and opportunities.

Organisers say stronger collaboration between technology providers, financial institutions, governments and development partners could improve service delivery, help lenders make better-informed decisions and enable agricultural businesses to serve customers more efficiently.

The programme will also examine sustainable financing models for weather and climate services, which are increasingly important in helping farmers manage production risks and make informed decisions under uncertain climatic conditions.

Technology and data will feature prominently, with masterclasses covering trusted data ecosystems for agricultural finance, sustainable agricultural payment systems, digital safety and security.

An artificial intelligence showcase, a farmers’ experience centre and a marketplace exhibition featuring more than 15 exhibitors will demonstrate emerging applications and practical innovations.

Since 2012, Prosper Global AgriFin has reached more than 18 million smallholder farmers across Africa and Asia through its programmes and partnerships.

Under the AgriFin Digital Farmer II programme, 7.6 million farmers were registered, exceeding the target of five million.

However, the organisation says the next phase must look beyond registration figures to determine whether farmers continue using digital services, whether the services meet their needs and whether the institutions providing them can sustain delivery.

The October 27 meeting is expected to conclude with participants identifying lessons and making commitments to translate shared learning into practical action.