Digital Africa, a subsidiary of the French development finance institution Proparco, has announced its first investment in Ethiopia by backing ChipChip, a local agritech company founded in 2023. ChipChip connects Ethiopian farms with buyers through a platform that uses data and artificial intelligence to make food distribution more efficient. The company aims to help farmers earn more while households pay less for fresh produce, and the deal represents a notable expansion of Digital Africa's presence in the East African agricultural market.
Closing the Farm to Household Gap
Digital Africa identified a persistent gap between farm and household, where too much value is lost and food costs more than it should. Sokhna Mbaye, Investment Associate at Digital Africa, said the team has the right skills and ground knowledge to make this model work at scale. The investment follows the fund's view that better distribution technology can address these challenges and build stronger local food systems across Ethiopia.
A Social Buying App for Fresh Produce
On the app, a user creates a group for a product and invites friends, family, or other users by sharing the product link. Users can also join existing groups, and once a group reaches the required number of members, the order goes through at a discounted price with delivery to the buyer's door. The produce comes from local farmers and suppliers, while group leaders can collect orders and earn rewards, and the app is available on iOS and Android.
Leadership Comments on Expansion
Bruk Getahun, co-founder and Chief Marketing Officer of ChipChip, said the investment will allow the company to strengthen its platform, deepen its data layer, and expand its network of farmers and B2B buyers. The startup plans to use the new capital to improve its technology and broaden its reach among agricultural producers and commercial buyers across Ethiopia. This focus is intended to create a more efficient and transparent supply chain that benefits farmers, businesses, and households alike.
Digital Africa's Co-Development Origins
Digital Africa was born out of French President Emmanuel Macron's desire to rethink the relationship between Africa and its international partners, and it was formed to push a co-development approach. In 2024, the organization pivoted to fully reposition itself as a dedicated Pre-Seed and Seed investment fund for African startups and entrepreneurs. This strategic shift reflects a broader commitment to supporting early-stage companies that need capital before they can access larger institutional rounds.
The DA Seed Fund and Startup Support
In May, Digital Africa launched the DA Seed Fund, a pan-African closed-end vehicle targeting between €30 million and €50 million. The fund backs tech-enabled African startups that are caught between Pre-Seed capital and institutional rounds, providing critical early support for growth. ChipChip's agritech focus aligns with the fund's goal of supporting digital innovation in sectors that drive economic growth and improve daily life across the continent's emerging markets.
Digital Africa's first investment in Ethiopia signals growing confidence in the country's agritech ecosystem and its ability to solve persistent food distribution challenges at scale. ChipChip's platform combines social commerce, data, and artificial intelligence to reduce food costs and improve farmer incomes at the same time. As the startup scales its operations with this new support, the partnership could serve as a practical model for technology-driven agricultural markets across Africa and beyond.