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Perhaps you’re eager to launch an AgriTech startup but aren’t sure what business ideas can fit within the space. This article helps you with 6 key niches in this industry that are bubbling with activity here in Nigeria and elsewhere in the world. There’s plenty of profit to be made from them. Here they are:
Digital ProcurementVentures in this plane enable and support agricultural resource procurement processes with digital platforms and systems that they build and maintain. Anyone who’s familiar with procurement in agriculture knows that the steps involved can be cumbersome and complex even in the best of times. It’s typically plagued by a mass of paperwork and other inefficiencies. Connecting the parties involved and facilitating procurement through digital channels makes it all so much easier.
Agricultural E-CommerceE-commerce was one of the first frontiers of growth for tech in Nigeria. And it’s still thriving. E-commerce platforms meant specifically for the purchase and sale of agricultural products are allowing farmers to reach new markets, including those located well beyond Nigeria’s borders. In this sense, the reach of the internet is creating opportunities for growth never seen in previous decades. Digital marketplaces make money by charging a small portion of the price of goods traded through them.
Smart FarmingYour startup could be one of a handful of pioneers helping farmers with technologies like the Internet of Things (IoT), so they can remotely access, monitor, and manage the goings on in their farms. Bringing the dream of tech-supported farms to life—with things like drones, sensor-fitted machinery, and cloud-based tracking applications –could radically improve farming processes and outcomes in the coming years.
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Information ServicesFarming is often capital-intensive. But it also thrives (or fails to thrive) on the availability of relevant information. Such things as market prices, agronomic advice, weather, and certification standards are crucial for the success of farming in most local contexts. AgriTech startups can solve the problem of a lack of availability of such information by providing it to farmers via a mobile-enabled service, which they can subscribe to for a fee.
Digital FinanceOne thing that many farmers lack is access to finance. When finance is available, it’s often difficult to obtain, no thanks to unrealistic demands and tough approval processes that exist on the part of lenders. Some AgriTech startups are solving this problem by connecting farmers with the financial products and services they need over digital channels.
CrowdfundingThis niche is one of the oldest within Nigeria’s AgriTech space. It involves pooling funds from a large number of investors—usually via digital platforms –and making those funds available to farmers. The farmers then invest the funds in their projects and pay back revenues from that project to the platform, which in turn pays the original investors (payments include ROIs). Although some startups operating this model have encountered challenges in recent times, it still presents great opportunities for entrepreneurs who are well-informed about Nigeria’s agricultural space.
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Final WordsAgriculture is Nigeria’s largest industry. So it makes sense that solving some of its problems will generate significant returns for businesses that come up with solutions. This can be true for your AgriTech startup. You just need to choose one of the many segments within the space, plan your entry carefully, and push for wins along the way. Featured Image Source: EOS Intelligence
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