Investors pursue sustainable models as agri-tech funding shifts

By Nicholas Waitathu

Funding for agricultural technology is facing a critical test as donor funding tightens, with investors, technology firms and development partners set to meet in Nairobi next week to explore how to turn promising pilot projects into commercially viable services that farmers can rely on.

The one-day 10th AgriFin Learning Event, led by Prosper Global AgriFin (PGA), formerly Mercy Corps AgriFin, will examine financing models, partnerships and evidence needed to scale digital solutions beyond development-funded programmes.

“How can solutions that have demonstrated promise through pilots and development-funded programmes become sustainable services that farmers rely on, businesses can maintain and markets can support at scale?” posed PGA programme officer Sieka Gatabaki.

Gatabaki said Mercy Corps AgriFin had worked with about 200 financial institutions, agricultural technology companies, digital platforms and governments across Africa and Asia since 2019 to advance digital agriculture.

The 10th AgriFin Learning Event is being held as the AgriFin Digital Farmer II phase of Gates Foundationfunding closes, raising questions about the long-term viability of digital services as development financing becomes more constrained.

Discussions will draw on a report commissioned through Mercy Corps AgriFin’s AgBase programme and developed by Briter and ISF Advisors, which tracked $4.39 billion in agricultural technology investment across 17 emerging markets between 2023 and the third quarter of 2025.

The report covers more than 900 deals, 700 funded companies and 900 funders, pointing to a stabilising investment landscape following the correction after 2022, but with recovery varying significantly across markets.

Participants will examine how financing can be matched to businesses’ needs and maturity, how development funding can help establish evidence and unlock markets, and how investors can support companies with credible paths to sustainability.

Gatabaki says better integration could help financial institutions make more informed lending decisions, enable agricultural businesses to serve customers more efficiently and give farmers easier access to relevant information and opportunities.

“The next phase of digital agriculture will depend on how effectively these services can be connected around farmers’ needs. Better integration can help financial institutions make informed decisions, enable agricultural businesses to serve customers efficiently and improve farmers’ access to relevant information and opportunities,” said Gatabaki.

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