Exploring opportunities in Africa’s seed market
Agriculture sector is recognised as a strategic driver of economic growth, as the country enjoys climatic and other conditions necessary for realising the full potential of the sector.
SPEAKING during the ZimTrade Annual Exporters Conference held in Harare recently, President Mnangagwa noted that the sector is well-positioned to anchor export growth.
“The agriculture sector remains one of the key strategic beneficiaries of policies instituted to drive growth in exports.
“The adoption and use of technology in agriculture has been scaled up as the nation strives towards climate-smart farming.
“This is further facilitating our agriculture sector to become more efficient and productive,” he said.
While all support is channelled towards increased production, productivity and industrialisation of the sector, it is important for local companies to start positioning themselves to tap into the growing market for agricultural seeds on the African continent.
Traditionally, discussions on exports from agriculture have often focused on fresh fruits, vegetables, flowers and meat.
However, outside the traditional products, there is a growing market for agricultural seed on the African continent, and most buyers are looking to Zimbabwe for quality and reliable supply.
Inquiries have been received from buyers in countries such as Ghana, Mali and Senegal, which are looking for long-term supply deals.
In the past, Government delegations from Tanzania have also visited Zimbabwean suppliers to discuss production of seed that suits their climatic conditions.
What is perhaps important is to examine the market for seed in Africa.
Africa’s imports
Over the past decade, most countries on the continent have been seeking to be food self-sufficient. This has resulted in increased investment in the agriculture sector across the continent, which is driving demand for agricultural seed.
For example, imports of soyabean seed for sowing in Africa grew by almost tenfold from US$4,2 million in 2013 to US$41,7 million in 2022, according to Trade Map.
Although this might look like a small figure, growing imports of the soyabean seed indicates that countries that become first movers in exports are likely to enjoy more benefits from the projected growth in imports on the continent.
Currently, some of the leading importing countries for soyabean seed for sowing are Mozambique (US$36,2 million), Zambia (US$1,2 million), Tanzania (US$1,1 million) and Angola (US$1,02 million).
When looking at suppliers for these countries, it is clear that local producers can take the lead if they expand production, supply consistently and have better prices.
For example, Mozambique — Zimbabwe’s neighbour — imports the bulk of its requirements of soyabean seed from Brazil (US$23,9 million) and Pakistan (US$9,24 million),
Imports of soyabean seed for sowing in Africa grew by almost tenfold from million in 2013 to million in 2022
according to Trade Map.
Buyers have also expressed huge interest in sourcing maize seed from Zimbabwe.
However, local producers can target all regions on the continent.
According to Trade Map, imports of maize seed for sowing are recovering, growing to US$164,6 million in 2022, up from US$147,2 million a year earlier. The recovery follows a drop between 2021 and 2022, from US$213,5 million to US$147,2 million.
Leading importing countries for maize seed for sowing on the continent last year were South Africa (US$26,1 million), Tanzania (US$23,7 million), Kenya (US$19,7 million), Equatorial Guinea (US$16,1 million) and Uganda (US$15,3 million). Other top importers in Africa are Morocco (US$10,4 million), Angola (US$8,8 million), Mozambique (US$4,8 million) and Zambia (US$4,2 million).
When looking at the source of most of these imports, one can identify opportunities if local companies ride on proximity to regional markets and existing trade agreements. For example, the top exporters of maize seed for sowing to South Africa last year were the United States (US$11,9 million) and Chile (US$11,5 million).
Although Zimbabwe accounts for a small share of exports of maize seed for sowing to South Africa, there is room to grow this figure.
On the other hand, Tanzania imports most of its maize seed from Zambia (US$15,2 million) and Malawi (US$4,8 million), with Zimbabwe
being the third-largest supplier (US$1,7 million). In addition, the largest suppliers to Kenya last year were Zambia (US$15,7 million), Zimbabwe (US$1,3 million) and South Africa (US$1,2 million).
The demand for vegetable seed for sowing has been growing on the continent, from US$296,8 million in 2018 to US$359,5 million in 2022. The leading importers are Morocco (US$105,2 million), Algeria (US$43,6 million), South Africa (US$37,9 million) and Egypt (US$24,7 million).
Morocco imports the bulk of its requirements from Kenya, Guatemala, China, Chile, Peru and France.
Top exporters of vegetable seed to Algeria are all out of Africa — China, Peru, Thailand, India and Chile. To connect with these non-traditional markets that are sourcing elsewhere, local companies must take advantage of regional and continental trade fairs such as the Intra-Africa Trade Fair, scheduled for November 9-15, 2023 in Egypt.
The trade fair provides an opportunity for local companies to connect with over 1 000 exhibitors and more than 10 000 visitors, including government agencies and ministries from all African markets.