Africa can dramatically boost its role in global agro-food trade by expanding access to capital, formalizing land rights, strengthening logistics, and using smart trade policies to spur local processing. These conclusions come from a recent report by Lilac Nachum of Strathmore Business School in Nairobi, published November 20 and featured in The Conversation. The study, titled “Agricultural exports from Africa are not doing well. Four ways to change that,” highlights that Africa sits on abundant uncultivated, arable land and enjoys favorable climates for about 80% of the world’s staple crops. In theory, these edge advantages should translate into robust export performance. Yet Africa’s share of global agro-food exports has dwindled to roughly 4%, the lowest among regions, and has declined since the 1960s according to World Bank data.
Despite notable outliers like Kenya and Ghana, many African nations have deprioritized agri-food exports in favor of manufacturing as their primary gateway to the global market. Public budgets reflect this tilt, with agriculture typically receiving around 4% of national spending.
The report argues that Africa’s natural endowments could position it as a major agri-food exporter and support broad-based development—provided the following four reform areas are pursued.
1) Expand sector financing
The first priority is broadened financing for the agri-food sector. Agriculture contributes roughly 25%–40% of GDP in many African economies, yet it garners only about 1% of commercial lending, according to the World Bank. Barriers include high risk, short investment horizons, limited collateral, and vulnerability to price swings, all of which drive higher borrowing costs.
Governments can bridge this gap by increasing public lending and by promoting private investment through risk-sharing arrangements. South Africa’s Khula credit-guarantee program, which pairs banks with the Small Enterprise Finance Agency, demonstrates how state-backed guarantees can unlock credit for farmers without requiring collateral. Similar approaches have rolled out in Kenya and Tanzania with backing from the European Union and development banks. Additionally, venture capital and microfinance platforms can contribute.
2) Formalize land rights
The second priority is to formalize land tenure. More than 80% of Africa’s arable land remains undocumented and governed largely by customary arrangements that sit outside formal legal systems. This opacity hinders land-based collateral and deters investment. The cost and duration of land transfers are often prohibitive, limiting access to credit and the scale needed to compete in export markets.
Recent reforms show tangible benefits. In Ethiopia, issuing ownership certificates to 20 million smallholders stimulated land rental activity, while Malawi’s redistribution of 15,000 hectares increased household income by about 40%.
3) Invest in logistics
Cross-border policies must prioritize infrastructure and logistics to ensure reliable exports and consistent product quality. For example, Senegal’s export volume rose about 20% after upgrading its maritime logistics, and Ethiopia’s floriculture boom benefited from robust cold-chain and air-freight capacity.
Tailored policy design matters for each value chain. Kenya’s avocado export program, anchored by strict quality and compliance standards, has propelled it to become Africa’s leading avocado exporter with double-digit growth. In Mali, a mango-export initiative supported by packing centers, cold storage, and European-standard compliance has created a competitive EU-focused value chain.
4) Use trade policy to spur processing and production
The report also proposes using trade instruments—such as export taxes or voluntary restrictions—to encourage domestic processing and raise value added. Limiting exports of unprocessed commodities can incentivize upgrading locally. However, simply banning raw exports without adequate processing capacity often falls short; countries like Botswana, Uganda, and Côte d’Ivoire show limited gains when the necessary processing infrastructure and markets aren’t in place.
In short, Africa’s vast arable land and favorable climate give it a meaningful opportunity to become a major global agri-food exporter. Realizing this potential hinges on financing reforms, secure land tenure, improved logistics, and strategic trade policies that promote local processing and value addition. What do you think—are these four reforms sufficient, or should other areas (such as regional integration, digital agriculture, or climate adaptation) receive equal emphasis to unlock Africa’s export potential?---Would you like this rewritten piece tailored for a specific audience (policy makers, investors, or general readers), or adjusted to a particular length or format?
