Agritech businesses must focus on solving major problems across the agricultural value chain, demonstrate accountability and establish risk-sharing arrangements to attract investors and unlock funding, Kudzai Gumunyu, Divisional Head, Agribusiness and Non-Oil Exports at First City Monument Bank (FCMB), has said.
Gumunyu said identifying and addressing the weakest points in the agricultural value chain would create opportunities for innovators to develop commercially viable solutions, generate revenue and attract partners needed for expansion.
He spoke during a discussion on structuring agritech ventures and attracting investment at the FCMB AgriTech Summit and Showcase 2026 in Lagos on Thursday.
Responding to questions from the moderator, LeeLee Ideh, Commercial Director of CareerBuddy, on how agritech businesses could accommodate the different interests of farmers, agribusinesses, development partners and financial institutions, Gumunyu said innovators should look beyond problems that already have established solutions.
He explained that businesses would have better opportunities to scale by identifying major challenges within the ecosystem and developing solutions that could be monetised.
“In an ecosystem or value chain, the chain is as strong as its weakest link. Usually, if you solve that, you can scale. That’s when you can really monetise very quickly,” he said.
According to him, innovators who can demonstrate their ability to solve problems, coordinate stakeholders and generate cash flows from their solutions are better positioned to strengthen the value chain, create employment and attract partnerships.
He added that scaling becomes easier when other stakeholders recognise the value of a solution and are willing to support its expansion.
On risk-sharing and accountability, Gumunyu said partnerships that distribute risks among stakeholders could help financial institutions become more comfortable with lending to agritech businesses.
He explained that risk-sharing arrangements reduce the exposure of individual lenders and enable businesses to access more capital.
However, he stressed that entrepreneurs must establish trust with financial institutions by demonstrating accountability and commitment to the proper use and repayment of borrowed funds.
According to him, businesses that utilise loans for their intended purposes and repay them as agreed build credibility with lenders, while dishonesty and failure to meet obligations weaken investor confidence.
“Capital is timid. At the slightest rumour of risk, it flees,” he said, adding that reducing investment risks through effective partnerships would encourage more capital to flow into the sector.
Looking ahead, the FCMB executive described agritech as central to the future of agriculture in Nigeria and Africa, noting that technology was helping to address challenges that had remained difficult to solve through conventional approaches.
He cited the technology-driven agricultural financing model associated with Babban Gona, which he said had achieved a 99.9 per cent loan repayment rate.
Gumunyu said the repayment performance demonstrated how technology could improve agricultural financing and support the expansion of businesses serving farmers.
He added that FCMB would continue to support agritech businesses by helping them scale their operations and bring innovative solutions to the market.
The FCMB AgriTech Summit and Showcase 2026, held on November 5, brought together stakeholders in agriculture, technology, finance and investment to explore opportunities for innovation and growth across the agricultural value chain.
