By Erestinah Jane, July 1, 2026
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has called on African countries to accelerate value addition in agriculture, arguing that the continent can no longer afford to remain an exporter of raw commodities while importing expensive finished products.
Speaking at the World Food Prize Foundation’s Dialogue Next Forum under the theme Born to Feed the Future, Kagwe said Africa must collectively challenge what he described as an unfair global trading system that imposes higher tariffs on processed products while allowing raw agricultural commodities into international markets at lower or zero duty rates.
He argued that the existing trade framework discourages industrialization across Africa by making it more profitable for developed economies to process African produce before selling it back to the continent.
According to Kagwe, the practice has left many African economies dependent on exporting raw materials while missing out on opportunities to create jobs, increase export earnings and build strong manufacturing industries.
The Cabinet Secretary noted that Africa remains one of the world’s leading producers of commodities such as coffee, tea, cocoa, cotton and macadamia, yet earns only a small fraction of the value generated along the global supply chain.
He said countries often export these commodities in their raw form at relatively low prices before importing finished products such as packaged coffee, chocolate, textiles and edible oils at significantly higher costs.
Kagwe described the trend as a major obstacle to economic transformation, saying it effectively exports processing industries and employment opportunities to wealthier nations while limiting industrial growth within Africa.
He urged African governments to adopt deliberate policies that require greater local processing before agricultural products are exported.
The Cabinet Secretary pointed to Kenya’s decision to ban the export of raw in-shell macadamia nuts as an example of a policy that has encouraged domestic processing, expanded local industries and increased the value earned from the crop.
He suggested that similar approaches could be adopted for other agricultural products across the continent to stimulate manufacturing and strengthen regional economies.
Kagwe also criticized policy inconsistencies within some African governments, arguing that while many administrations publicly champion industrialization and value addition, they simultaneously impose taxes and levies that increase the cost of agro-processing equipment and farm mechanization.
He said such contradictory policies discourage investment in processing facilities and reduce the competitiveness of local manufacturers.
The Cabinet Secretary further called on financial institutions to redesign agricultural financing models to better suit the realities of farming.
He said conventional loan products often fail to consider seasonal production cycles and climate-related risks faced by farmers.
Instead, Kagwe urged commercial banks and development finance institutions to introduce more flexible lending arrangements, including repayment grace periods, affordable credit facilities and weather-indexed insurance products that protect farmers against losses caused by droughts, floods and other extreme weather events.
He added that improved access to financing would encourage investment throughout agricultural value chains, from production and processing to packaging and marketing.
Kagwe also emphasized the importance of value addition in addressing youth unemployment across Africa.
He said processing agricultural products into branded, export-ready goods would create thousands of skilled jobs in manufacturing, quality assurance, logistics, marketing, packaging and international trade.
Using Kenya’s tea and coffee sectors as examples, he argued that exporting finished consumer products rather than bulk raw produce would allow more young people to find employment within local industries while increasing foreign exchange earnings.
The Cabinet Secretary urged African countries to work together in reforming trade policies, strengthening regional manufacturing and promoting intra-African trade to ensure the continent captures a larger share of the value generated from its agricultural resources.
He said achieving sustainable economic growth will require coordinated policies that prioritize industrialization, encourage private sector investment and position Africa as a producer of high-value agricultural products rather than merely a supplier of raw commodities to global markets.
