Africa’s agri-food trade more than doubles, but hunger still soars - report

Intra-African agri-food trade has more than doubled since 2003, driven by growing demand, better trade facilitation, and regional integration efforts like the African Continental Free Trade Area.

Yet despite these gains, hunger and malnutrition remain deeply entrenched across the continent, according to the Alliance for a Green Revolution in Africa (AGRA).

In its latest Africa Food Systems report, the Alliance highlights that billions of dollars in funding commitments have not translated into significant reductions in food insecurity.

“In 2023 alone, more than one in five Africans, nearly 300 million people, were undernourished,” the report reads.

It adds that without decisive action, the continent risks becoming the global epicentre of hunger by the end of this decade.

Besides the downside risks, AGRA offers a comprehensive view of Africa’s evolving food trade landscape, emphasising both progress and persistent obstacles.

Notably, it highlights the growing share of processed food exports within the continent, which now make up over two-thirds of total agri-food trade.

Countries like South Africa, Egypt and Kenya have emerged as leaders in this transition, driven by investments in agro-processing and logistics.

On the flip side, the Alliance says the overall structure of trade remains uneven, with many nations still heavily reliant on raw commodity exports and vulnerable to global price shocks.

Notably, despite the overall growth in intra-African trade, the expansion is concentrated in a few sectors and regions.

Processed exports in areas like tobacco, oils, and animal products have surged, while gains in staples like cereals and vegetables and beverages remain limited.

On the other hand, the majority of agri-food trade is still dominated by a handful of countries, underlining persistent regional disparities and the need for more inclusive growth strategies.

Intra-African import flows

The intra-African agri-food import landscape reveals a clear pattern of supplier concentration, with South Africa emerging as the dominant source across most product categories.

The country leads in seven of the ten key agri-food categories, with notable shares in beverages, spirits, and vinegar (55.7 per cent), cereals (47.6 per cent), fruits and nuts (39.3 per cent), and cereal-based preparations (38.6 per cent).

Other Topics To Read

• Business
• Headlines
• African Continental Free Trade Area
• malnutrition
• food insecurity
• hunger
• AGRA
• Africa Food Systems report
• agri-food trade
• Africa’s agri-food trade more than doubles
• but hunger still soars - report

“This dominance reflects South Africa’s advanced agro-processing sector, strong logistics, and extensive regional trade linkages, positioning it as a hub for processed and semi-processed food products in Africa,” the report adds in part.

Other countries also play significant but more product-specific roles.

Kenya leads in coffee, tea, mate, and spices (40.3 per cent), supported by its globally recognised tea industry and strong regional trade networks.

Ethiopia dominates in vegetables and certain roots and tubers (32.2 per cent) due to diverse agro-ecological zones and proximity to East African markets.

Eswatini supplies most sugar and sugar confectionery.

Challenges in Africa’s food systems

One of the central concerns raised by AGRA is the limited value addition within Africa’s food systems.

Structural constraints, including inadequate infrastructure, non-tariff trade barriers, and fragmented production systems, continue to limit the continent’s ability to move beyond raw exports.

UNCTAD’s findings support this view, showing weak intra-regional production linkages and limited product diversification.

Smallholder farmers, who form the backbone of African agriculture, remain particularly disadvantaged by high borrowing costs and inconsistent policies across borders.

The report notes that 55 to 75 per cent of financing needs in the agriculture sector remain unmet, with borrowing costs ranging from 10 to 30 per cent, far above global norms.