Unlocking Africa’s Agricultural Value Chains Through Trade, Value Addition and Investment

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Africa’s agricultural sector is entering a pivotal period of transformation as governments, policymakers and international partners place renewed emphasis on value addition, fair trade and strategic investment to strengthen the continent’s food systems and economic resilience.
Speaking ahead of the Africa Forward Summit (AFS) 2026, Kenya’s Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, called for a fundamental shift in Africa’s trade relationship with global markets, arguing that the continent must move beyond exporting raw agricultural commodities toward building competitive value chains that retain wealth within African economies.
Moving Beyond Raw Commodity Exports
For decades, Africa has remained one of the world’s largest suppliers of raw agricultural products while much of the processing, manufacturing and branding has taken place overseas.
According to Kagwe, this long-standing trade structure has limited income opportunities for millions of African farmers and prevented the continent from capturing the full value of its agricultural production.
He argued that future trade partnerships should prioritise local processing, manufacturing and market access, enabling African countries to export finished and semi-processed products rather than raw commodities.
“The era of asymmetrical trade must give way to equitable partnerships,” Kagwe said, stressing that African producers should play a central role in global agricultural value chains.
Value Addition Driving Economic Growth
Kenya is already implementing policies aimed at increasing domestic value addition across several agricultural sectors, including coffee, tea, avocados, macadamia nuts, leather, hides and skins.
By processing agricultural products closer to where they are produced, countries can create employment opportunities, increase export earnings and improve returns for farmers while stimulating industrial development.
Kagwe noted that removing tariff and non-tariff barriers for value-added African products would significantly improve the competitiveness of the continent’s agricultural exports in international markets.
He warned that tariff escalation on processed products continues to discourage industrialisation and reinforces Africa’s role as a supplier of raw materials rather than finished goods.
Financing and Technology as Key Enablers
Expanding agricultural value chains will require increased investment and better access to finance, particularly for smallholder farmers who form the backbone of African agriculture.
Kagwe called for financing models tailored to agricultural value chains, alongside greater deployment of technology, digital platforms and artificial intelligence-powered advisory services to improve productivity and market access.
He also emphasised the importance of research partnerships, innovation and technology transfer to modernise agricultural production and strengthen competitiveness across the continent.
Leveraging Continental Integration
The Africa Continental Free Trade Area (AfCFTA) presents a significant opportunity to accelerate agricultural trade by creating a single market of more than 1.2 billion people.
Combined with initiatives such as the Comprehensive Africa Agriculture Development Programme (CAADP) and the Kampala Declaration on Food Systems, the agreement provides a framework for expanding regional value chains, increasing intra-African trade and attracting investment into agribusiness.
Kagwe said stronger continental integration would allow African countries to build larger markets, improve economies of scale and encourage greater private sector participation across agricultural industries.
Building Partnerships Based on Mutual Benefit
The upcoming Africa Forward Summit is expected to focus on strengthening partnerships between Africa and Europe through investment, manufacturing collaboration and sustainable development rather than traditional aid relationships.
Kagwe argued that future cooperation should prioritise joint ventures, local manufacturing, technology transfer and investment structures that preserve value within African economies while providing equitable access to global markets.
He also called for greater clarity on investment commitments, funding mechanisms, technology transfer benchmarks and implementation timelines to ensure summit outcomes translate into measurable economic benefits.
A New Era for African Agriculture
As global demand for food continues to grow, Africa’s agricultural sector is increasingly being recognised as a strategic driver of economic transformation.
With abundant natural resources, a growing population and expanding regional markets, the continent has significant potential to build resilient agricultural value chains that generate employment, increase exports and improve food security.
Achieving this vision, however, will depend on stronger investment, supportive trade policies, local value addition and partnerships built on fairness and shared prosperity.
If these priorities are successfully implemented, Africa’s agricultural sector could move beyond its traditional role as a supplier of raw commodities to become a globally competitive producer of high-value agricultural products, strengthening both rural livelihoods and long-term economic growth.
Mutahi Kagwe is the cabinet secretary for agriculture and livestock development in Kenya











