The investment targets inefficiencies that leave farmers earning less while consumers pay more for food.
Digital Africa has made its first investment in Ethiopia, backing agritech startup ChipChip, a platform that connects farms directly with buyers to improve how food moves through the supply chain.
Digital Africa is a subsidiary of Proparco, the private-sector financing arm of France’s AFD Group. It invests directly in African startups, with a focus on ecosystems that traditional investors tend to overlook, and it also trains emerging founders in key digital professions. In 2024 the organisation refocused its work around entrepreneurs. Earlier this year it launched a €50 million (about $57 million) seed fund to back startups in 20 underserved markets, with tickets of up to €2 million and a focus on countries outside the “big four” hubs of Nigeria, Kenya, South Africa and Egypt. Digital Africa says its earlier pre-seed fund has already supported more than 70 startups across 16 African countries.
ChipChip applies data and artificial intelligence to the distribution of agricultural produce. The aim is to cut the value lost between farm and household, a gap that can leave farmers with lower earnings and push food prices higher for consumers.
Sokhna Mbaye, Investment Associate at Digital Africa, said the backing reflects confidence in the founding team, which she said has “the skills and ground knowledge to make this model work at scale.”
The startup is led by Bruk Getahun, Yasin Aman, Hannes Garben and Amir Redwan, working with a wider team. For Digital Africa, the deal marks its entry into Ethiopia’s technology ecosystem and adds to its portfolio of African startups using digital tools to tackle economic and social challenges.
The investment also points to growing interest in applying AI and data to African agriculture, particularly to make supply chains more efficient and bring producers closer to the people who buy their output. The announcement did not disclose the size or terms of the investment.
