Delegates from Africa’s 25 coffee-producing countries have convened in Kampala, Uganda for the 2nd G-25 Heads of State Africa Coffee Summit. With a resolute purpose, these nations seek to persuade the African Union to prioritize coffee cultivation as a central strategy to uplift millions from poverty. The gathering, held from August 7 to August 10, echoes the theme of the 2023 African Union agenda – “Transforming the African Coffee Sector through Value Addition” – aligned with efforts to expedite the implementation of the African Continental Free Trade Area (AfCFTA).
Experts assert that the potential of coffee as a catalyst for economic transformation is profound. They believe that as the political leadership across the continent comprehends the role of coffee in catalyzing economies, it will not only bolster domestic trade but also present a united front on the global stage. Just as petroleum-producing nations have banded together to influence markets, these coffee nations aim to amplify their sway over the industry.
Ezra Suruma, former finance minister of Uganda and an economist, stated that the collective voice of the 25 coffee-producing countries marks a pivotal stride towards international influence. “By uniting in the same manner as petroleum nations,” Suruma noted, “we can wield more influence over our product.”
Ugandan President Yoweri Museveni, addressing the summit, highlighted Africa’s loss of revenue due to the international preference for raw coffee. Despite coffee being a $460 billion global commodity, coffee-producing countries command only $25 billion, and Africa merely $2.4 billion. Museveni emphasized that value addition is the solution. He advocated for transforming raw products into finished goods, thereby attracting higher foreign exchange and accelerating development.
Ethiopian President Sahle-Work Zewde advocated for increased technical and financial support from international coffee trading companies to bolster the value addition process for African farmers. Zewde stressed the need for united promotion of African coffee and fair pricing on the global stage.
Solomon Rutega, secretary general of the Inter-African Coffee Organization, revealed that coffee-producing countries are proactively urging non-coffee-producing nations to source directly from them. Conversations with South Africa, a major buyer of Brazilian coffee, are ongoing. Moreover, countries in the Maghreb region, including Algeria and Morocco, are encouraged to bypass Europe and procure coffee directly from Africa.
Rutega disclosed Africa’s interest in emerging markets like China, envisaging coffee sales as finished products. Gerald Katabazi, a Ugandan coffee businessman, commended the policy-level initiatives to augment coffee earnings. However, he highlighted the necessity of addressing logistical challenges and non-tariff barriers that hinder trade. Rutega expressed optimism in the forthcoming impact of the AfCFTA agreement, anticipating the alleviation of these obstacles.
The AfCFTA agreement holds remarkable promise. The World Bank projects a $450 billion income boost for Africa by 2035, accompanied by an 81% surge in intra-African exports. The UN Economic Commission for Africa envisions this single-market trade pact propelling the African economy to a staggering $29 trillion by 2050.
