PepsiCo’s Kgodiso Fund has invested in Khula, a South African agritech startup, marking a significant boost for the country’s burgeoning agricultural technology sector. The investment, announced on January 16, 2026, will empower Khula to expand its reach and further develop its platform connecting smallholder farmers to markets. This is a win for our continent, demonstrating growing confidence in African-led solutions to food security and economic empowerment. We are seeing more global players recognize the potential within our local ecosystems.

Khula’s Focus on Bridging Market Gaps

According to Tech In Africa, Khula’s core mission is to address the challenges faced by smallholder farmers in accessing reliable markets and fair pricing. Many African farmers struggle with post-harvest losses and limited bargaining power, hindering their ability to thrive. Khula’s platform aims to mitigate these issues by providing a direct link between farmers and buyers, streamlining the supply chain and ensuring better returns for agricultural produce. This model echoes the success of platforms like Twiga Foods in Kenya, which have revolutionized fresh produce distribution.

The Role of PepsiCo’s Kgodiso Fund

The Kgodiso Fund, PepsiCo’s venture capital arm focused on African innovation, is strategically positioned to support businesses like Khula. The fund’s investment signals a commitment to fostering sustainable agricultural practices and empowering local communities. While the specific investment amount hasn’t been widely publicized, the backing of a global food and beverage giant like PepsiCo provides Khula with not only capital but also valuable industry expertise and potential market access. This is a crucial advantage as Khula scales its operations.

South Africa’s Agritech Landscape

South Africa is rapidly becoming a hub for agritech innovation, driven by the need to improve agricultural efficiency and address food security concerns. We’ve seen a surge in startups leveraging technology – from precision farming techniques to mobile-based agricultural finance – to transform the sector. Companies like Aerobotics, utilizing drone technology for crop health monitoring, are gaining international recognition. Khula’s success will undoubtedly inspire further investment and growth within this vital industry, potentially attracting attention from investors like TLcom and Partech.

Building Africa’s Food Sovereignty

This investment in Khula represents a step towards greater food sovereignty for South Africa and, by extension, our continent. By empowering smallholder farmers and strengthening local supply chains, we reduce our reliance on imports and build a more resilient agricultural system. The future of African agriculture lies in embracing technology and fostering partnerships between global corporations and local entrepreneurs. We anticipate further growth in this sector, with Khula potentially expanding its services to other African nations by 2028.