World Trade Organisation: Agricultural Issues for Africa

The Africa Competitiveness Report 2013, the fourth report jointly published by our organizations, comes out at a time when international interest in Africa is surging and the continent is seen both as an investment destination of choice and as a region marked by greater prosperity and development.

Welcome to the third annual edition of Ernst & Young’s Africa attractiveness survey. We release this at a time of ongoing uncertainty in the global economy, with the Eurozone in particular continuing to struggle. In contrast,economic growth across much of Africa has remained robust, with a number of our economies still among the fastest growing in the world. This continues a remarkable decade of growth and development, with not only economic, but also social and political indicators all trending in the right direction.

Women play a key role in trade in Africa and will be essential to Africa’s success in exploiting its trade potential. Women make a major contribution to trade in most African countries through their involvement in the production of tradable goods as cross-border traders and as managers and owners of firms involved in trade. In many countries in Africa, the majority of small farmers are women, and they produce crops such as maize, cassava, cotton, and rice that have enormous potential for increased trade between African countries and with the global market.2 Women are also involved in providing services across borders, such as education, health, and professional services, including accountancy and legal services. Hundreds of thousands of women cross borders in Africa every day to deliver goods from areas where they are relatively cheap to areas in which they are in shorter supply.

Download The Report Here East Africa’s agricultural trade is evolving, with commodities such as tea, coffee, cereals, and edible vegetables driving exports across the East African Community (EAC) and Inter-Governmental Authority on Development (IGAD) regions. Tea, in particular, stands out as a major export with strong global market performance, while cereals show a mixed trend, with both significant exports and rising imports—especially for staple foods such as maize, rice, and wheat—highlighting the region’s need to supplement local production. Trade within the region remains strong, with Kenya emerging as a central hub, facilitating the movement of goods across both EAC and IGAD countries. Uganda, Tanzania, Rwanda, and Burundi primarily engage in intra-regional trade, while Ethiopia’s exports extend beyond the EAC, reaching markets such as Somalia, Djibouti, Egypt, South Africa, and Kenya. Other important trade partners include Egypt, South Africa, and the Democratic Republic of Congo (DRC), reinforcing the interconnectedness of Africa’s agricultural markets. However, challenges persist. Trade imbalances, infrastructure gaps, and shifting market demands require urgent policy interventions. Harmonising trade policies, improving infrastructure, and building capacity among producers and exporters will be crucial for sustaining growth. Additionally, diversifying exports, strengthening climate resilience, and enhancing data-sharing mechanisms will ensure that agricultural trade continues to thrive in an increasingly competitive global landscape. With the right strategies in place, East Africa has the potential to solidify its position as a major player in agricultural trade, driving economic development and food security across the region.

The East African Community (EAC) is poised to reap substantial benefits from enhanced trade integration across the African continent, particularly through the African Continental Free Trade Area (AfCFTA). A recent study, titled “Export Trade Potential of the East African Community under the Africa Continental Free Trade Area (AfCFTA) 2024,” indicates that the region's total export potential under the AfCFTA is estimated at approximately $1.9 billion, presenting a significant pathway for economic transformation. Leveraging the International Trade Centre (ITC)’s methodology, the research pinpoints high-potential export products within EAC member states. Kenya, Tanzania, and the Democratic Republic of Congo (DRC) exhibit the most significant export potential, while South Africa, Egypt, and Zambia are identified as key African markets for EAC goods. Specific sectoral opportunities highlighted include tea from Kenya, processed cereals from Burundi, mineral products from Tanzania, and metals from the DRC. Beyond these specific product opportunities, the AfCFTA offers broader advantages encompassing improved market access, increased investments, industrial expansion, and strengthened regional cooperation. It is also expected to stimulate growth in crucial EAC sectors such as agriculture, pharmaceuticals, automotive, and logistics, while simultaneously accelerating digital trade and infrastructure development within the region. To fully realize this potential, the report recommends that EAC Member States prioritize investments in value addition to enhance product competitiveness, foster the development of industrial clusters, improve access to finance for businesses, and provide support for women traders to promote inclusive growth. Furthermore, the implementation of measures like export insurance schemes, duty remission programs, and advancements in digital...