From Lagos to Jakarta: Why SEA agritech needs Africa’s “boots on the ground” playbook

Agricultural technology (agri-tech) in emerging markets once promised to leapfrog infrastructure through digital solutions, but this narrative is now challenged by the realities of rural Asia. A recent report reveals that fragmented farm supply chains cannot be solved solely by software when factors like poor roads, unreliable storage, and patchy cold chains hinder progress.

Funding has become more selective post-2023, forcing investors and founders to reconsider their strategies. In Southeast Asia, the distinction between purely digital and "system" approaches is crucial.

In Indonesia, where many startups struggled due to weak operational controls and thin unit economics, this distinction is particularly poignant. Infrastructure is not just a support layer, but the bottleneck that can make or break an agri-tech venture. Founders must address the physical aspects of the supply chain, including transport, warehousing, grading, and traceability. Digital tools can improve visibility and coordination, but they cannot overcome fundamental issues like broken roads or lack of cold storage.

The "phygital" approach, which combines physical infrastructure with digital systems, is gaining traction as a more effective model. While digital layers are important for capturing farmer data, managing payments, and monitoring supply, the human and physical layers remain indispensable. Field agents play a critical role in building trust, educating farmers, and ensuring the credibility of payment terms.

In Southeast Asia, this is especially relevant as smallholders often rely on local relationships and may not adopt services without assurances of reliability.

Examples from Africa, such as ThriveAgric in Nigeria and Twiga Foods in Kenya, show that successful platforms often involve direct involvement in fulfilment, logistics, and buyer relationships. However, the absence of a physical layer can trap projects as pilot programs rather than scalable businesses. For emerging Asia, the lesson is clear: the winners will be companies that integrate software with a deeper operating system encompassing inputs, finance, logistics, and market access.

Standalone crop advisory apps are becoming less viable as they struggle to monetize their value. Instead, platforms that bundle quality inputs, financing, and market access into a cohesive system are more likely to succeed.