Potential of Digital Technology in Agriculture
Agriculture in the Global South is highly diverse, ranging from traditional structures to modernisation and increasing digilatlization.
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The agricultural sector plays a central role in the economies and societies of most countries in South America, Africa, South Asia, and Southeast Asia, but is often characterized by low productivity, inadequate infrastructure, and limited market access. The agricultural sector accounts for over 15% of GDP in South and Southeast Asia, and the share is even higher in Africa. Only in South America is the share moderate, at just over 7%.
Structure of the Agricultural Sectors
Agricultural sectors in South America, Africa, South Asia, and Southeast Asia have significant structural differences, primarily shaped by farm size, production orientation, level of mechanization, and market integration. In South America, capital-intensive agribusiness dominates, featuring large farms, high mechanization, and a strong export orientation, particularly for products such as soy, meat, and sugar – a pattern typical of globally integrated agricultural systems (see FAO 2022; World Bank 2023). In contrast, agriculture in Africa is predominantly organized around smallholder farming, often characterized by subsistence farming, and exhibits a very low level of mechanization as well as low productivity. At the same time, the share of the workforce employed in agriculture is particularly high, at up to 70%, while integration into global markets often remains limited (see World Bank 2022). South Asia and Southeast Asia lie structurally between these two extremes and feature both traditional and increasingly modernized agricultural systems that are undergoing a process of transformation (see FAO 2022; IFAD 2021; World Bank 2023).
Table 1 - Structural Comparison of Agricultural Sectors
Feature | South America | Africa | South Asia | Southeast Asia |
Business Structure | Large businesses, few small businesses | Smallholder farms dominate (<2 ha) | Highly fragmented small businesses | Mix of small businesses and plantations |
Porduction Focus | Export orientation (soybeans, meat, sugar) | Subsistence, | Domestic market focus (rice, wheat) | Mixed focus: |
Technology | High (mechanisation, digitalisation) | Very low | Medium | Medium to high |
Capital Insensity | High | Very low | Low to medium | Medium |
Land Use | Large scale, extensive, monocultures | Extensive, low input intensity | Very extensive irrigation, multiple harvests) | Extensive (plantation agriculture) |
Market Integration | Strong global integration | Low | Medium (regional / national) | Increasing global integration |
Major Problems | Deforestation, environmental impact | Poverty, infrastructure, climate rfisks | Water scarcity, soil degradation | Deforestation, environmental impact |
Sources: FAO (2022); IFAD (2021); Ritchie & Roser (2022); World Bank (2023).
Productivity in the agricultural sector varies significantly across regions from South America to Africa, South Asia, and Southeast Asia – primarily due to differences in the level of mechanization, farm structure, and input use. South America has the highest level of productivity, while Africa lags significantly behind. South Asia and Southeast Asia occupy an intermediate position, with Southeast Asia tending to achieve greater productivity gains. These global differences illustrate that productivity depends less on natural conditions and more on technological infrastructure, access to capital, and institutional frameworks.
Table 2 – Productivity Differences and Main Reasons
Region | Average Yields (t/ha) | Productivity Level | Main Reasons |
South America | approx. 4–6 t/ha | High | Mechanisation, agrobusiness, high input use |
Africa | approx. 1–2 t/ha | Low | Low level of technology, lack of capital, climate |
South Asia | approx. 3–4 t/ha | Medium | Intensive use, irrigation, small farms |
Southeast Asia | approx. 4–6 t/ha | Medium to high | Improved technology, export orientation |
Source: World Bank (2023).
Use of and Access to Digital Technologies in the Agricultural Sector
The use of and access to digital technologies in the agricultural sector vary significantly between South America, South Asia, Southeast Asia, and Africa, primarily reflecting differences in infrastructure, income, and agricultural structure. Digital technologies include, in particular, mobile communications, internet-based information systems, precision agriculture, and digital market platforms.
Table 3 – Use of and Access to Digital Technologies in the Agricultural Sector
Region | Internet / Mobile Access | Use of Digital Technologies in Agricultural Sector | Rural Access | Major Hurdles |
South America | High (≈ 80– 90 % Internet usage) | Precisionagriculture (GPS, digital farm management systems); widespread in large enterprises | Relatively good, but weaker in remoter regions | Inequality between large enterprises and smallholders farmers |
Africa | Low (≈ 30–40 % Internet; ~28 % mobile Internet) | Basic mobile services (e. g. market prices, weather data), low adoption of complex technologies | Very low; major urban-rural divide | High costs, low availability, lack of skills |
Southeast Asia | Medium - high (≈ 70–80 %) | Mobile Apps (weather, prices), digital payment systems, growing platform economy | Medium; differences between islands and rural areas | Regional disparities, infrastructure deficits |
Südasien | Medium (≈ 50–70 %) | Mainly mobile usage; information services for smallholder farmers | Limited, especially in rural areas | Low income, lack of education, infrastructure |
Sources: FAO (2022); GSMA (2025); Statista (2025); World Bank (2024).
In South America, the agricultural sector is comparatively highly digitized. Large, export-oriented farms in particular are increasingly adopting technologies such as satellite data, GPS-based machine control, and digital farm management systems. This trend is supported by high internet and mobile phone penetration, as over 80% of the region’s population has access to the internet (see World Bank 2024). In contrast, the use of and access to digital technologies remain limited for smaller farms.
Southeast Asia shows a similar prevalence of digital technologies (see Statista 2025). Agricultural stakeholders are increasingly turning to apps for weather information, market prices, or digital payment systems. However, differences persist between urban and rural regions, as well as between modern export sectors and traditional smallholder farming.
In the agricultural sector in South Asia, access to digital technologies is more heterogeneous, with strong growth but lower penetration than in Southeast Asia and significant gaps in access to digital infrastructure in rural regions. Mobile technologies play a key role here, as they often represent the only access to the internet (see World Bank 2024).
The greatest challenges lie in Africa, where both the use of and access to digital technologies in the agricultural sector are the least developed. Although many regions now have good mobile network coverage, only about 28% of the population uses mobile internet (see GSMA 2025). Usage is particularly limited in rural areas, due to high costs, a lack of digital skills, and limited availability of devices. At the same time, Africa shows great potential for development, as mobile technologies are increasingly being used as a tool to improve market integration and productivity.
Digital Technologies Along the Value Chain
In the regions under consideration, there are digital solutions that increase the efficiency and transparency of the entire agricultural value chain by connecting stakeholders and providing access to capital, information, and markets. Companies such as eVuna (South Africa) and DeHaat (India) connect farmers with lenders, logistics services, and customers, and bundle various services on a single platform, including access to agricultural inputs, insurance services, and crop recommendations. Companies such as iCow (Kenya), M-Farm (Kenya), eVuna (South Africa), and Ninjacart (India) provide market information and offer advisory services on livestock management and farming methods. Digital payment systems, fintech, and crowdfunding solutions such as M-PESA (Kenya), GCash (Philippines), Paytm (India), Agrotoken (Argentina), as well as AgriCrowdfunding (South Africa) and Agrivest Africa (Ghana) facilitate both access to capital and the financing and processing of financial transactions along the value chain. Digital training programs help build knowledge and skills across the various stages of the agricultural value chain. Through free and, in some cases, paid online courses, farmers can strengthen their skills – for example, through the FAO’s e-learning Academy or the World Bank Group Academy. This also gives farms in remote (rural) regions access to relevant agricultural training in various languages.
Looking at individual segments of the value chain, similar approaches to digital technologies in procurement and production are evident across all regions. These are designed to reduce costs, increase productivity, and bridge information gaps. Digital platforms such as M-Farm (Kenya) aggregate demand for raw materials and inputs to enable volume discounts, for example. While Hello Tractor facilitates access to modern agricultural machinery in 18 African countries, the Indian company XMachines offers electric, semi-autonomous robots that can perform various farming tasks much like a compact tractor. Farmers also have access to databases through platforms such as Booster Agro (Argentina), iCow (Kenya), and Agrayan (Rwanda), which provide information on plant characteristics, weather conditions, and livestock management, among other things. This simplifies decision-making and enables more efficient production.
Digital technologies are also increasingly being used in the storage and transport of agricultural products. These optimize transport routes, help coordinate supply and demand, and enable real-time monitoring of inventory levels and deliveries, making supply chains more flexible and efficient.
Digital platforms such as OmniRetail (Nigeria) integrate procurement, storage, and transport via a B2B platform and use data-driven and, in some cases, AI-powered analytics to improve transparency and efficiency along the supply chain. KisanSabha (India) takes a similar approach, with its platform enabling transport booking, tracking, and price comparison for logistics services related to agricultural products. The Nigerian startup Figorr enables real-time temperature tracking and product cooling, which creates greater transparency and reliability, particularly during the cross-border transport of perishable goods such as fruits, vegetables, and pharmaceutical products.
The marketing and distribution of agricultural products in many regions are characterized by limited price transparency, inefficient market structures, and dependence on middlemen. E-commerce and online platforms address this by directly connecting producers and buyers, lowering trade barriers, and in some cases bypassing middlemen. This opens up more direct sales channels and potentially better prices.
Platforms such as M-Farm (Kenya) allow users to check current market prices via SMS and enable farms to band together to sell jointly to bulk buyers or exporters. Ninjacart (India) and Sayurbox (Indonesia) also connect farmers with retailers and end consumers via digital platforms, while simultaneously reducing the number of middlemen.
Digital Transformation in the Agricultural Sector
Overall, it is evident that the agricultural sector in the regions studied faces significant structural challenges in some cases, yet simultaneously shows great potential for development. Digital technologies are increasingly helping to boost efficiency, improve access to information, and open up new market opportunities. Mobile applications, in particular, play a central role in this regard. Nevertheless, significant disparities in access and usage persist, especially between large-scale operations and smallholder farming systems. To fully realize the potential of digitalization, additional investments in infrastructure, education, and institutional frameworks are necessary. In the long term, this can make an important contribution to sustainable development, increased productivity, and food security in numerous countries of the Global South.
The authors work at ESB Business School, Reutlingen University. Prof. Dr. Philipp von Carlowitz is Professor for Strategic and International Management, Head of the Think Tank Doing Business in Africa. Dr. Simon Züfle is a Postdoctoral Researcher at the Think Tank, while Sophia Bauer is its Research Communications Manager.
References
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World Bank (2023). World Development Report, www.worldbank.org/en/publication/wdr2023 (Zugriff: 01.06.2026).
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