AgTech Emerges as Top Sector for African Angel Investors Despite Overall Funding Decline

May 12, 2026

Fadilah Tchoumba, CEO of ABAN

In a clear sign of growing confidence in the sector’s long-term potential, agriculture and agritech ranked as the top sector of interest for African angel investor networks in 2025, according to the latest African Business Angel Network (ABAN) Angel Investment Survey.

The report, produced in partnership with Briter Intelligence and the United Nations Development Programme (UNDP), surveyed over 60 angel investors and angel network managers across the continent. It reveals that despite a challenging funding environment, early-stage investors see significant opportunity in AgTech.

Strong Angel Interest Amid Broader Funding Slowdown

While overall agritech funding across Africa declined to $168.1 million in 2025 (down from $206.9 million in 2024), angel networks showed renewed enthusiasm for the sector. Agriculture and agritech topped the list of preferred sectors for angel networks, even as individual angel investors ranked it second behind fintech.

This contrast highlights an important trend: angel investors — who typically back very early-stage companies — are positioning themselves at the front end of what many believe will be a multi-year growth story in African agriculture.

Logistics and supply chain startups also attracted strong participation, reflecting the interconnected nature of food systems and the need for better market linkages.

Key Highlights from the ABAN Report

• More than 35% of surveyed investors now prefer startups that are already generating revenue, showing increased caution in a tighter funding climate.

• Ticket sizes remain modest: Over 90% of individual angels invested under $25,000 in 2025.

• Angel networks demonstrated slightly larger capacity, with 8% writing cheques above $100,000.

• There are now more than 75 active angel networks and over 5,000 individual angels across 37 African countries.

Why This Matters for South African AgriTech

For South Africa — which already hosts one of the most mature AgriTech ecosystems on the continent — the report is encouraging. Local startups such as Aerobotics, SwiftVEE, MyFarmWeb, and Farmonaut are well-positioned to benefit from increased angel activity.

Angel capital is especially critical for early-stage AgriTech companies that are often too small or too risky for traditional venture capital. Strong angel interest can help bridge the “valley of death” many agritech founders face between idea validation and institutional funding.

The report also notes persistent challenges: limited exit opportunities, constrained deal flow, and economic/regulatory hurdles. These issues remain particularly relevant in South Africa, where regulatory clarity around AI, data governance, and drone usage continues to evolve.

A Positive Signal for the Sector

Fadilah Tchoumba, CEO of ABAN, captured the sentiment well:

“If Africa is to build stronger innovation ecosystems and convert entrepreneurial energy into broad-based development, angel investing must be recognised not as a peripheral activity, but as part of the continent’s growth infrastructure.”

For South African farmers and AgriTech entrepreneurs, the message is clear: while institutional funding has cooled, patient, mission-driven angel capital is increasingly flowing toward solutions that address food security, climate resilience, and smallholder productivity.

As the sector matures, we can expect more angel-backed AgriTech companies to emerge from South Africa — helping close the productivity gap, reduce post-harvest losses, and build more resilient food systems.

The renewed angel interest in AgTech is not just good news for startups — it’s ultimately good news for every farmer working to feed the nation.