ADAM HILELLY: Time to invest in Africa’s booming drone sector

Africa’s drone industry is growing at an impressive rate, and international investors have strong incentives to join the action.

The industry is set to grow more than 6% a year from 2023 to 2028. Sales in the continent reached $35m (about R656m) this year.

Drones, which are unmanned aerial vehicles (UAVs), have several areas of application across the continent, especially agriculture and healthcare. They will become more important in Africa as the effects of climate change worsen and the rate of epidemics, possibly pandemics, rises.

International investors have many African drone companies to consider, many of them probably scalable and with a measurable impact. 

Starting with agriculture, farmers in Nigeria, Kenya, Senegal and Mali, to name but a few countries, see the benefits of involving drones in production. Drones have repeatedly improved crop yields and reduced costs. Farmers can monitor crop health and identify pests and diseases, as well as assess soil quality, by examining high-resolution images and using sensors.

Farmers can also use drones for crop selection by mapping tree, shrub and cropping patterns. Globally, the agriculture drones market is expected to reach $14.06bn (R264bn) by 2023, growing faster than 11% a year. 

Drones also facilitate medical deliveries. The Covid-19 pandemic crystallised how useful drones can be in this, delivering medical supplies over long distances to urban and rural areas alike. Drones also transported test samples from residential areas to laboratories.

Studies suggested pandemics will become more common, due mainly to climate change and population growth. Drones are a cost-effective and safe way to transport medication to remote populations while reducing physical contact.

Internationally, in 2022 the medical drone sector had a valuation of $318m (about R5.9bn) and was expected to expand to top $3bn in 2033. Most recently, a drone saved an injured and isolated Ukrainian soldier on the battlefield by delivering him life-saving supplies. 

The continent’s drone industry is already vibrant, with several African companies operating drone factories, including in SA and Morocco. International investment can have a multiplier effect. Some agro-centric drone companies have launched training programmes to ensure long-term employment and prevent rural exodus.

Additional funds could enable these companies to offer more programmes and produce more affordable drones. Making drones cheaper would enable lower-income farmers to acquire this technology. Similarly, increased funding for drone companies focused on healthcare deliveries could expand operations and delivery routes. 

Drones are also attractive due to international companies’ ESG considerations and obligations. Drones, which are battery-powered, substitute for fuel-powered options. They also limit oversaturation and runoff in crop fields as farmers can disperse soil additives with greater precision.

Companies looking to offset carbon emissions should consider investing in drones to fulfil their ESG requirements while contributing to innovation in a fast-growing sector. 

Despite the industry’s potential, setting and standardising regulations remain a challenge. By May, more than a quarter of African governments had limited drone use, precluding farmers from fully exploiting the technology. Other governments did not regulate drones at all.

Governments in Africa and worldwide are also playing catch-up with drone development and regulation. Updating regulations to enable farmers and companies to unlock the technology’s possibilities could prove to be highly beneficial for all parties. Furthermore, synchronised regional or continental regulation would limit cross-border land issues. 

Farmers and healthcare providers are seizing on drones’ groundbreaking opportunities. Infusing drone companies, many of them privately owned, with capital will expand operations, enhance capabilities and multiply impact in these two dynamic sectors. 

• Hilelly is a business and politics researcher based in Senegal.