The growth in production of agricultural products is not keeping pace with population growth across the region. This is likely to increase the local supply deficit and increase dependency on imports, unless it is addressed at policy and funding levels.
Cereals namely wheat and rice are the major commodities imported from the region with Argentina, Russia, China, India, Myanmar and Mexico key trade partners for imports. On the other hand, Tanzania and Kenya are major exporting countries with pulses and cashew nuts making up the lion’s share of exports from the region. Tanzania is the largest producer of Cashews and second largest for Pigeon Peas. Whereas, Kenya is largest producer and exporter of fruits like Avocadoes and Mangoes.
East African countries, like the rest of Africa export the most basic of farm products and import processed ones. Example, Africa accounts for almost 43% of global cashew production, but it mostly sells unprocessed cashews to India and Vietnam. Both these countries then process them and sell onto the global market. This lack of capacity in value-addition is denying the region vital forex earnings, increase the balance of payments negatively and limiting local employment opportunities.
Lack of structured risk capital that targets largescale early stage projects is a major limiting factor on the development of agri-food sector in Africa and addressing many of the points.
Agricultural production is heavily concentrated in 5 countries, namely Ethiopia, Tanzania, Malawi, Kenya and Uganda. However, each country produces a different product mix.
