Technology in the Agriculture sector in Africa is critical: DHL Express and the Gordon Institute of Business Science (GIBS) release study on the future of African Agritech
Technological Advancement as a Catalyst: The impact of technology, especially AI and digital platforms, is shaping the future of agriculture on the continent.
Emerging Business Models: The paper discusses the need for innovative models and management strategies in the industry.
Case Studies of Success: The report features inspiring case studies from various African nations, showcasing innovative Agritech solutions
DHL Express Sub-Saharan Africa (SSA) (www.DHL.com), in collaboration with the Gordon Institute of Business Science (GIBS) Centre for African Management and Markets (CAMM), has unveiled a white paper that highlights the trends shaping the agricultural landscape in Africa. This research emphasises the critical role of technology, particularly artificial intelligence (AI), in enhancing agricultural productivity and reducing poverty across the continent.
The African Agritech: The State of Play and Potential for Prosperity report reveals that improvements in agricultural productivity have a disproportionately positive effect on poverty alleviation in developing nations. A 1% increase in agricultural total factor productivity (TFP) correlates with a 1% decline in the population living in extreme poverty, highlighting agriculture's potential as a powerful tool for economic development.
As Africa's population continues to grow, the agricultural sector stands at a crossroads, facing both challenges and unprecedented opportunities. The industry is vital for sustainable development and economic growth in Africa. Agriculture has long been a cornerstone of the continent's economy, accounting for approximately 15% of output, which is significantly higher than the global average of 5% [1].
For Africa to thrive, its agricultural sector must be optimally used to drive growth, especially given the rapid population increase projected for the region. The paper highlights the need for the industry to consider innovative models and management strategies. Innovation and technology are crucial for enhancing agricultural output and efficiency, which can lead to improved economic conditions across the continent.
'This paper highlights our commitment to supporting sustainable growth and innovation in the agricultural sector, particularly on the African continent. DHL's purpose revolves around connecting people and improving lives – as the world's largest logistics company, it is our responsibility to lead the way and guide the logistics industry into a sustainable future and ultimately ensure that we make a positive difference in the communities in which we operate. Through this paper, we hope to provide a glimpse of what lies ahead for the industry and demonstrate our commitment to sustainable economic growth,' said Hennie Heymans, DHL Express SSA CEO.
'We knew agritech was a powerful driver of prosperity, but we were impressed with what we unearthed during the research. Tech is being used in amazing ways to improve everything from soil management and crop spraying to transportation and fire detection,' said Ian Macleod, a member of the CAMM research team.
DHL Agri-Express – a solution for Agri SMEs in SSA
DHL Express SSA recently launched a new DHL Agri-Express solution, a time-definite express packaging solution developed to support Agricultural SMEs in Sub-Saharan Africa with the shipping of avocados.
This innovative and sustainable solution eliminates the need for active cold chain shipping by employing cutting-edge alternative technology. Specifically designed for small sample shipments of 6 to 50 avocados, this packaging solution enables customers to leverage the DHL Express network to send samples to buyers in international markets with ease and speed.
The research paper can be downloaded here (https://apo-opa.co/3Z5FbaN).
[1] Suri, T.,&Udry, C. (2022). Agricultural technology in Africa. Journal of Economic Perspectives, 36(1), 33-56.
Distributed by APO Group on behalf of DHL Express.
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About DHL Group:
DHL Group is the world's leading logistic company. The Group connects people and markets and is an enabler of global trade. It aspires to be the first choice for customers, employees, investors and green logistics worldwide. To this end, DHL Group is focusing on accelerating sustainable growth in its profitable core logistics businesses and Group growth initiatives. The Group contributes to the world through sustainable business practices, corporate citizenship, and environmental activities. By the year 2050, DHL Group aims to achieve net-zero emissions logistics.
DHL Group is home to two strong brands: DHL offers a comprehensive range of parcel, express, freight transport, and supply chain management services as well as e-commerce logistics solutions. Deutsche Post is the largest postal service provider in Europe and the market leader in the German mail market. DHL Group employs approximately 602,000 people in over 220 countries and territories worldwide. The Group generated revenues of approximately 84.2 billion Euros in 2024.
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