• Report outlines four reforms to help Africa boost its role in global food value chains

• Measures focus on financing, land rights, logistics, and trade policy

• Study finds Africa’s share of global agro-food exports has fallen to about 4%

Africa could improve its position in global agro-food value chains by expanding access to capital, formalizing land rights, using trade policy to increase local processing, and adopting cross-border policies that prioritize investment in infrastructure and logistics. These are the findings of a report published on Saturday, November 20, by Lilac Nachum of the Strathmore Business School in Nairobi.

The study, titled “Agricultural exports from Africa are not doing well. Four ways to change that,” and published in The Conversation, notes that the continent holds a large share of uncultivated, sparsely populated arable land and has climatic conditions suitable for producing 80% of the world’s food crops. In theory, these advantages should translate into strong export performance. Instead, Africa’s share of global agro-food exports is the lowest of any region and has declined over the past six decades, falling from around 8% in 1960 to just 4% in the early 2020s, according to World Bank data.

With some exceptions such as Kenya and Ghana, most African countries have given little priority to agri-food exports and have focused instead on manufacturing as their main path into the global economy. This trend is reflected in public spending, with agriculture receiving an average of only 4% of national budgets.

The report argues that Africa could leverage its natural advantages to become a major exporter of agri-food products and drive broad-based economic growth, provided it undertakes reforms in four key areas.

Improving sector financing

The first step is to expand access to financing for the agri-food sector. Although agriculture accounts for 25% to 40% of GDP in African economies, it receives only about 1% of commercial lending, according to the World Bank. High risk, short investment horizons, limited collateral, and exposure to price shocks hinder access to credit, while interest rates are often higher than in other sectors.

Governments could help close the financing gap by increasing public lending and encouraging private sector participation through risk-sharing mechanisms. South Africa’s Khula credit-guarantee scheme, a partnership between commercial banks and the Small Enterprise Finance Agency, illustrates how state-backed guarantees can unlock financing for farmers without collateral.

Similar models have been rolled out in Kenya and Tanzania with support from the European Union and development banks. Venture capital and microcredit platforms can also play a role.

Clarifying land rights

The second priority is land-rights formalization. More than 80% of Africa’s arable land is unregistered and governed by customary systems that are poorly integrated into formal law. This prevents land from being used as collateral and discourages investment. Transferring land also costs about twice as much and takes twice as long as in OECD countries, limiting access to credit and the scale needed to compete in export markets.

Recent reforms demonstrate the benefits of clearer land rights. In Ethiopia, issuing ownership certificates to 20 million smallholders increased land-rental activity, while redistributing 15,000 hectares in Malawi raised household income by 40%.

Investing in logistics

African governments also need cross-border policies focused on infrastructure and logistics to ensure smooth export flows and consistent product quality. Senegal raised its annual exports by 20% after investing in fast maritime transport. Ethiopia’s floriculture boom owes much to its cold-chain systems and air-freight capacity.

Policies must be tailored to each value chain. Kenya’s targeted avocado export strategy, built on strict quality and compliance standards, has made it Africa’s top exporter with double-digit annual growth. Mali’s mango export program, supported by specialized infrastructure such as packing centers and cold rooms, along with technical assistance to meet European standards, has helped create a competitive value chain serving EU markets.

Using trade policy to promote production and processing

The report adds that African countries could use trade policy tools—including export taxes and voluntary restrictions—to encourage local processing and raise value added. Governments could limit exports of unprocessed goods to stimulate domestic upgrading.

At the same time, investment in processing capacity is essential. Several countries that attempted to ban exports of unprocessed agricultural goods—such as Botswana, Uganda, and Côte d’Ivoire—saw limited success because conditions were not favorable for local processing to expand.

Walid Kéfi