The recent Africa Agriculture Trade Monitor (AATM) highlights a remarkable milestone in intra-African agricultural trade, which has surged to a new high of US$ 17 billion. This achievement not only surpasses the previous peak set in 2013 but also reflects a significant recovery and growth trajectory despite the disruptions caused by the COVID-19 pandemic. The tripling of trade volumes observed over the past decade underscores a positive trend in regional economic integration and market expansion. However, this surge presents both opportunities and challenges that need to be addressed to sustain and enhance the growth of intra-African agricultural trade.
The report emphasizes that while the recent growth is commendable, it is crucial to build on this momentum by bolstering policy and infrastructure support. This includes enhancing trade facilitation measures and investing in regional infrastructure to reduce trade barriers and transaction costs. Improving logistics, streamlining customs procedures, and investing in transportation networks are essential steps to further accelerate trade and ensure that the benefits are evenly distributed across the continent.
In addition to addressing trade facilitation, the report underscores the need for sustainable practices to mitigate the pressure points of climate change, water use, and carbon emissions. These factors are increasingly influencing agricultural productivity and trade dynamics. Climate change poses risks to crop yields and farming conditions, while water scarcity affects irrigation and overall agricultural sustainability. Moreover, carbon emissions from agricultural practices contribute to global warming, exacerbating environmental challenges.
To address these issues, the AATM recommends adopting sustainable agricultural practices that promote resilience to climate change and efficient water use. This includes encouraging the use of climate-smart agriculture, improving water management techniques, and reducing carbon footprints through innovative technologies and practices. Policy frameworks should integrate environmental considerations with trade policies to support sustainable development and ensure that agricultural trade contributes positively to both economic growth and environmental conservation.
By aligning trade policies with sustainability goals and investing in the necessary infrastructure and support systems, Africa can harness the potential of its agricultural sector while addressing the critical challenges posed by climate change, water scarcity, and carbon emissions.
Published by AKADEMIYA2063 and the International Food Policy Research Institute (IFPRI), the 2024 AATM explores the complex links between trade and climate change, analyzing carbon emissions associated with the production and transportation of agricultural products, embedded water content in traded agricultural products, and climate stress-induced yield changes in agriculture.
This year’s report also examines how trade can mitigate the environmental impacts of economic activities. The authors call for policies to leverage trade in climate adaptation efforts, notably through strategic use of countries’ comparative advantages.
“Agriculture is the main channel through which climate change disrupts African economies, but it is also the sector with the biggest potential to lead adaptation to climate change,” said Dr. Ousmane Badiane, Executive Chairperson at AKADEMIYA2063.
“As shown by the latest AATM, there are numerous opportunities for win-win solutions in climate adaptation and mitigation within the agricultural sector. The report highlights areas for policy interventions to facilitate intra-African trade, drive climate action, and enhance the efficient use of natural resources.”
Launched during a hybrid event held in Kigali, the report examines the recent performance of African agricultural trade with a focus on the complex relationships between trade, climate change, and food security, addressing the following key issues:
- Carbon emissions: Today, African imports and exports account for a minimal percentage of overall global greenhouse gas (GHG) emissions embodied in global agricultural trade, at only 2.3 and 2.5 percent, respectively. However, as Africa has been experiencing the third-fastest growth in agricultural exports (after the Americas and Asia) and the second-fastest growth in imports (after Asia) between 2018 and 2022, investing in emissions-saving innovations will become increasingly important.
- Virtual water: More intra-African trade could help countries reduce the impact of localized water scarcity by facilitating imports from relatively more water-abundant countries of more water-intensive crops, such as maize, millet, guava, mangoes, beans, and peppers. Relatively water-constrained countries can then focus more on less water-intensive yet nutritionally essential foods such as vegetables. This trade in “virtual water”, or the water content embedded in traded agricultural products, should be complemented with infrastructure investments to improve irrigation systems and water management practices.
- Climate vulnerability: Africa’s comparative advantage in agriculture will be severely affected by climate change, including rising temperatures, increased frequency of extreme events (particularly droughts), plant pests and diseases, and reduced labor productivity. Notably, most agricultural products traded or consumed in Africa appear to be at risk, especially leguminous vegetables, edible nuts, and oilseeds, vegetables, and some fruits, such as apples and bananas. Smart use of countries’ comparative advantages by shifting production from environmentally resource-scarce countries to resource-abundant areas can contribute to climate change adaptation and mitigation efforts.
“Stepping up the integration of African food systems through enhanced trade ties can help the continent address some increasingly complex challenges,” states Dr. Johan Swinnen, Director General of IFPRI. “In a global context marked by more frequent food system shocks and the resurgence of export restrictions, this year’s AATM calls for greater resilience via enhanced agricultural trade integration. These recommendations are timely, given the development of the African Union’s Post-Malabo Agenda, and should be considered as the African Continental Free Trade Area enters its fifth year in operation.
Additional recommendations from the authors call for governments to accelerate regional integration and increase investment in infrastructure. Key value chains should be strengthened in terms of processing capabilities and technologies, as well as improved capacities and logistics, facilitating producers’ adherence to international standards. The prospect of increasing water scarcity can be alleviated by facilitating the trade of embedded water in agrifood products between regions with differential water availability.
