In recent years, the African agrifoodtech landscape has witnessed a notable shift towards climate technology, with a significant uptick in funding for climate-related startups. According to AgFunder’s Africa AgriFoodTech Investment Report 2024, climate tech companies have raised an impressive 40% of all funding within the upstream supply chain in the first half of the year. This marks a substantial improvement from 2023, when climate tech accounted for only 21% of the total funding. The growing interest in sustainable agricultural practices reflects a broader recognition of the urgent need to address climate change and food security across the continent.
One standout in this burgeoning sector is Moroccan startup Yola Fresh, which has recently secured a $7 million seed funding round led by Al Mada Ventures. Other notable investors include Algebra Ventures, E3 Capital, Janngo Capital, and the Dutch entrepreneurial development bank FMO. This funding follows an earlier $2 million seed stage investment in March 2023, showcasing the growing confidence in Yola Fresh’s innovative approach to transforming the fresh produce supply chain in Africa.
Co-founders and co-CEOs Larbi Alaoui Belghiti and Youssef Mamou emphasize that Yola Fresh is tackling critical challenges such as food waste, inefficiencies in distribution, and limited market access for smallholder farmers. Their technology-driven logistics platform aims to streamline the delivery of fresh produce, thereby reducing waste and enhancing the livelihoods of farmers. “Our mission is to create a more efficient and sustainable food system where smallholder farmers play a central role in reducing carbon emissions and water usage,” they explained in an interview with AgFunder News.
Founded in 2023 in Casablanca, Yola Fresh is part of the AgFunder agrifoodtech category Ag Marketplaces & Fintech, which has emerged as the leading sector in Africa’s agrifoodtech funding landscape for 2024, securing 41% of the total funding with $65 million across 17 deals. This shift in funding dynamics indicates a growing recognition of the need for innovative solutions that address both food security and environmental sustainability.
Despite the challenges posed by macroeconomic conditions in 2023, which led to a slowdown in investor interest, the Yola Fresh team remains optimistic about the future. They note that while funding may have dipped, there is still robust backing for innovations that focus on reducing food waste, improving water efficiency, and lowering carbon emissions. “Over the next five years, we plan to scale across African markets, expanding our network of smallholder farmers and helping them increase their incomes through fair market access,” they shared.
The broader implications of this funding surge are significant. In 2024, climate-tech startups in Africa have already raised $45 million across 13 deals, a marked improvement compared to the previous year when they secured $31 million across 27 deals. This trend underscores a growing commitment to climate-smart agriculture, with startups increasingly focusing on solutions that not only enhance productivity but also mitigate environmental impact.
Morocco, while currently attracting less funding than leading countries like Kenya, Egypt, and Nigeria, is making strides in the agrifoodtech sector. With two sizable deals in 2024 totaling $13 million, Morocco has positioned itself as the fourth largest recipient of agrifoodtech investment on the continent. The country has historically lagged in attracting funding, but the recent activity suggests a potential turning point.
As the African agrifoodtech ecosystem continues to evolve, the focus on climate technology will likely play a crucial role in shaping the future of agriculture on the continent. Startups like Yola Fresh are at the forefront of this change, demonstrating how innovative solutions can address pressing challenges while promoting sustainability and resilience in the face of climate change. The path forward is not without its challenges, but the increasing investment in climate tech signals a hopeful trend towards a more sustainable agricultural future in Africa.