Africa’s agricultural sector is entering a new phase in which export competitiveness increasingly depends not only on production volumes and prices, but also on how agricultural commodities are produced.
With Africa importing an estimated $70 billion in food annually while holding a significant share of the world’s uncultivated arable land, expanding agricultural production remains a major economic opportunity. However, producers seeking access to international markets are facing growing expectations around environmental protection, labour conditions, land rights and supply-chain transparency.
Agriculture accounts for about 17% of Africa’s gross domestic product and provides livelihoods for nearly half of the continent’s workforce. As the population grows and demand for food and agricultural commodities increases, the ability to produce competitively while meeting evolving market requirements will become increasingly important.
The palm oil industry provides an example of how sustainability requirements are becoming embedded in agricultural supply chains. The 2024 Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria include requirements covering land acquisition, human rights, labour conditions and environmental protection.
For African producers and exporters, such standards can directly influence access to international buyers. Companies increasingly need to demonstrate where commodities originate and provide evidence that they have been produced in accordance with defined environmental and social requirements.
Land rights are particularly important in African agricultural investment, where projects can intersect with customary land ownership and community livelihoods. The RSPO framework requires consultation with local communities and customary rights holders before operational expansion.
Effective land governance can therefore have commercial implications. Unresolved disputes can create delays, increase operational risks and affect relationships between investors, producers and surrounding communities.
Labour standards are also becoming an increasingly visible component of agricultural supply chains. The RSPO’s 2024 requirements include human rights due diligence and measures addressing issues such as worker remuneration, debt bondage and grievance mechanisms.
For exporters, meeting these requirements can mean greater investment in documentation, monitoring and supply-chain management. Traceability is becoming particularly important as international buyers seek greater visibility into the origins and production conditions of agricultural commodities.
Environmental requirements are similarly shaping market access. The RSPO standard restricts land clearance in High Conservation Value areas, High Carbon Stock forests and peatlands, creating additional considerations for agricultural expansion in forest-rich countries.
The Democratic Republic of Congo, Republic of Congo, Gabon and Liberia are among the African countries where agricultural development intersects with significant forest resources. For these markets, the challenge is balancing investment and rural economic opportunities with environmental protection.
The implications extend well beyond palm oil. African producers of coffee, cocoa, tea, cotton, fruit, grains and other commodities are increasingly operating in markets where buyers place greater emphasis on responsible sourcing, traceability and environmental and social performance.
For smaller farmers, however, meeting these requirements can be difficult. Certification, monitoring, documentation and improvements in production practices can require financial and technical resources that many smallholders do not have.
This makes access to finance and technical support an important part of Africa’s export strategy. Farmers and agricultural businesses need access to appropriate financing, training, technology and infrastructure if they are to meet increasingly demanding buyer requirements without losing competitiveness.
Infrastructure is another critical factor. Poor rural roads, limited storage capacity and inefficient logistics can increase the cost of moving agricultural products from farms to processing facilities and export markets. Improving these connections can strengthen both farmer returns and the competitiveness of African exports.
Regional trade could provide another avenue for agricultural growth. The African Continental Free Trade Area offers the potential to expand intra-African trade and encourage the development of regional agricultural value chains.
Rather than exporting commodities primarily in raw or minimally processed form, African countries can use regional markets to develop processing, packaging, logistics and manufacturing capacity. This could allow a greater share of the value generated by agricultural production to remain within African economies.
Sustainability standards will form part of this changing trade environment. While compliance can increase costs, meeting recognised standards can also provide exporters with a framework for demonstrating responsible production to international buyers.
The challenge for policymakers and industry is ensuring that sustainability requirements do not become an insurmountable barrier for smallholders. Support systems that combine finance, training, infrastructure and market access can help producers adapt while maintaining their participation in agricultural value chains.
Africa’s agricultural opportunity therefore extends beyond increasing production. Building competitive export industries will increasingly require stronger connections between farmers, processors, logistics providers, financial institutions and international buyers.
As global markets place greater emphasis on environmental and social performance, the ability to demonstrate responsible production could become an increasingly important part of Africa’s agricultural export competitiveness.
For African exporters, sustainability is consequently becoming more closely connected to commercial market access. Price and production volumes will remain important, but traceability, compliance and responsible supply-chain practices are increasingly becoming part of the requirements for competing in international agricultural markets.