Problem: While reading about the impact of COVID-19 in Africa, I came across this telling quote from Joshua Uzu, “Mechanization levels on farms across Africa is low, with farmers having to depend on manual agricultural labor to meet crucial productivity targets. For instance, while the number of tractors per square kilometers in India and Brazil are 128 and 116 respectively, Rwanda and Nigeria boast only 1.3 and 2.7 tractors per square kilometers…. Typically, the effect of low production volumes is supposed to be cushioned by preserved food in storage facilities, which will be released to markets in periods of low production, preventing food shortages. However, in many African countries, the storage facilities are either not enough or in many cases defunct/outdated…”
Solution: A business dedicated to mechanizing Africa’s farms and farmers. Starting in Africa, then expanding out to the rest of the developing world, this business could take a sizeable dent of the $7.4 trillion food production market. Through investments in precision agriculture technologies, this business could capture a vastly underserved market. As Uzu describes (emphasis mine),
large commercial farms should invest more in precision agriculture technologies such as agricultural drones that can reduce costs linked to agricultural labour and inputs. Farmers cooperatives across the continent should also enter into long-term partnerships with private companies that provide agricultural drones and other cutting-edge technologies and innovation in the agricultural space to boost their productivity and reduce cost. In addition, African nations should invest in the modernisation of defunct and under-performing silos as well as establishment of new ones in strategic regions to provide food buffers in times of scarcity. Finally, national stored food products research institutes should be well funded to enable researchers to come up with novel ways of storing key food products of each country, which can be implemented by the available facilities.
Food is one of the most fundamental businesses of human existence. By investing in food, this business can also do good and increase the quality of life for millions (if not billions) of employees, farmers, and consumers.
Monetization: (1) selling these technologies or (2) creating a system of farm revenue sharing so that the farmers can get hardware for cheap and later pay back the cost of the machine (like a mortgage, but for hardware) or (3) government grants.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)