An expert in sustainable agricultural development and economic transformation, Ilésanmí Ìmísí, has called attention to the untapped potential in Africa’s agro-commodity sector. Despite being one of the world’s largest producers of agricultural commodities such as cocoa, coffee, cotton, and cashew, Africa continues to capture only a small fraction of the wealth generated from these products. According to Ìmísí, this imbalance highlights the urgent need for African nations to adopt value addition as a strategy for economic transformation.
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Ìmísí notes that Africa’s reliance on raw commodity exports is not a new phenomenon. In the 1990s, Nigeria’s Ondo State was a symbol of the continent’s agricultural promise. Idanre’s cocoa farmers wielded significant economic power but failed to invest in practices that could ensure sustainability or promote value addition. Instead, they depended on Local Buying Agents (LBAs) who prioritized exports over local processing. Decades later, this short-term approach persists, leaving Africa exposed to the volatility of global commodity prices and unable to maximize the benefits of its agricultural wealth.

The situation is reflected in grim statistics. The Global Trade Report (2019) reveals that 75% of West African cocoa is exported raw annually, while over 90% of East African coffee is sold as unprocessed green beans.

For cashew nuts, only 5% of production in West Africa undergoes local processing, with the remainder shipped to Asia for refinement. Meanwhile, Africa’s agricultural output fuels industries worth billions globally, yet the continent captures only a small share of this wealth. For example, Africa’s cocoa production sustains a $130 billion global chocolate industry, but its earnings are limited to just $6 billion.

Ìmísí further highlights the significant economic loss in other sectors. Africa accounts for 60% of the world’s arable land and produces over 10 million metric tons of cashew annually, yet it processes less than 10% of its total agricultural exports locally.

Similarly, while East Africa leads in coffee production with over 7 million 60-kg bags exported yearly, its value-added share in the global coffee market remains minimal. Cotton, another high-value crop, follows the same trend, with over 95% of Africa’s output exported as raw fiber to be processed abroad.

According to Ìmísí, the solution lies in shifting focus from raw commodity exports to value addition. By processing raw materials into finished or semi-finished products, African nations can command higher market prices, build resilience against price fluctuations, and reap significant economic benefits. Value addition has the potential to stimulate economic growth through improved foreign exchange earnings, create employment opportunities by generating demand for both skilled and unskilled labor, and drive technological innovation. For example, Nigeria’s sugar sector has embraced technology transfer from Brazil, enabling local refinement of raw sugar and enhancing the country’s industrial capacity.

However, Ìmísí emphasizes that realizing these benefits requires deliberate action. African governments must offer financial support to agro-processors through grants and low-interest loans, while investing in critical infrastructure such as energy and transportation networks to enable efficient processing. Regional cooperation is also essential. By leveraging frameworks like the African Continental Free Trade Area (AfCFTA) to eliminate trade barriers, African nations can boost intra-African trade and compete more effectively in global markets.

“The time to act is now,” says Ìmísí. “Africa has the resources, the talent, and the market potential to transform its agricultural sector into a powerful engine of economic growth. By embracing value addition, we can rewrite the narrative of poverty and dependence and unlock a future of shared prosperity.”