Overcoming Challenges To Digital Agribusiness Start Ups

The recent CTA workshop on ‘catalysing actionable knowledge to enhance next-generation ACP agribusiness through digitalisation’ identified five intersecting drivers that explain what farmer-oriented agribusinesses expect to achieve by investing in digitalisation: reduced risk, raised productivity, increased efficiency, improved decisions, and enhanced market access. Participants argued that digital interventions all serve one or more of these, depending on specific local needs and situations. A critical factor underpinning what works in all these areas is the economic sustainability of the business models used to deliver value and services.

This interpretative phenomenological research focuses on youth-led companies offering digital services to the agrofood sector in West Africa. Youth is considered as per the African Union definition: individuals aged between 15 and 35 years old. Our research questions were to understand the business models adopted by these start-ups; how their business models and business model innovation lead to business success; other key drivers that can support the achievement of success. With this study, we aim to contribute to the limited existing body of knowledge on this nascent but growing business field in West Africa. Though focused on West Africa, analyses go beyond and are of interest to any stakeholders interested in this subject in Africa in particular.

Digital as well as other technical and institutional innovations underpin the success of agriculture in developing countries in Africa, the Caribbean and the Pacific (ACP). Such innovations are encouraging a new generation of young ‘agripreneurs’ to tackle agri-food challenges, explore ways to build resilience to climate change, and improve the incomes and livelihoods of people in agriculture. This issue of ICT Update brings together selected experiences of agricultural practitioners working close to the ‘front line’, bringing innovation and next-generation ideas to agriculture for development projects, and helping them reach, benefit and empower smallholder producers, leading to sustainable change.

Do innovative digital solutions improve the performance, competitiveness and profitability of farmer-oriented agribusinesses in African, Caribbean and Pacific (ACP) countries? Thirty practitioners attending a recent CTA workshop zoomed in on real cases to test this question, assessing what works, how and why and drawing out insights and lessons – actionable knowledge – for wider application. Workshop participants identified five intersecting drivers that explain why farmer-oriented agribusinesses invest in digitalisation: to reduce risk, raise productivity, increase efficiency, improve decisions, and enhance access to markets. Participants argued that digital interventions all serve one or more of these, depending on specific local needs and situations. A critical factor underpinning success or failure in these areas is the sustainability of the business models used to deliver value and services.

The report introduces 30 young innovators, 21 featured with full stories, and nine other "innovators to watch". They come mainly from countries including Barbados, Botswana, Cameroon, Côte d'Ivoire, Kenya, Nigeria, Uganda, Jamaica, Senegal, Tanzania. The publication presents a multidimensional picture of the emerging field of ICT entrepreneurship in agriculture in developing countries. It describes challenges but also successes already achieved. It contains advice for aspiring agtech entrepreneurs as well as recommendations from youth on how to support their ventures.

The recent CTA workshop on ‘catalysing actionable knowledge to enhance next-generation ACP agribusiness through digitalisation’ identified five intersecting drivers that explain what farmer-oriented agribusiness expect to achieve by investing in digitalisation: reduce risk, raise productivity, increase efficiency, improve decisions, and enhance market access. Participants argued that digital interventions all serve one or more of these, depending on specific local needs and situations. A critical factor underpinning what works in all these areas is the economic sustainability of the business models used to deliver value and services. This brief by Valarie Pilgrim argues that the sustainability of digital agribusiness projects can be enhanced through three main steps: 1) plan for sustainability in the initial project design, 2) monitor sustainability readiness throughout the life-cycle of the project, and 3) verify that indicators of sustainability have been achieved during the project close-off process.

The present book is a product of many brains, most of whom have practically been facilitators of agri entrepreneurship in one way or the other. The book will be helpful to aspiring and budding entrepreneurs who want to make it big in agri-preneurship. The book mainly focuses on how the challenges of startup agribusinesses can be overcome in a cost and time effective manner. The book will prove to be a facilitating campanion for everyone in startup agri-preneurship fraternity.

Spore magazine - issue 184 - A global perspective on agribusiness and agricultural development