Africa to Focus on Coffee Production and to Move in Chain

February 24, 2025

(3 Minutes)

Africa accounts for only 11 per cent of global coffee production—a sharp decline from 25 per cent in the 1960s. While global coffee demand continues to rise, the continent’s output has struggled due to ageing farmers, climate change, pests and limited value addition.

African coffee-producing nations have set an ambitious target to increase the continent’s share of global coffee production to 20 per cent by 2030. This key resolution was among the top priorities at the 3rd G25 African Coffee Summit, which is taking place here. Ministers and experts deliberated on strategies to rejuvenate the sector and ensure Africans benefit from the full coffee value chain.

Tanzania’s Minister for Agriculture, Mr Hussein Bashe, who led discussions alongside over 20 senior government officials from coffee-producing nations on the first day of the summit, stressed the urgent need for a paradigm shift.

“It’s crazy that we export coffee worth USD 3 billion but import coffee products worth $50 billion. We must change from being raw material exporters to value addition and finished goods producers,” he said. Tanzania is among the countries taking proactive steps to address these challenges. Minister Bashe outlined several initiatives aimed at transforming the sector.

The government is investing in strengthening coffee research institutions to combat pests, diseases, and climate-related threats. It has also introduced coffee seedlings and fertiliser subsidies to support smallholder farmers, ensuring they can improve productivity and maintain high-quality yields. A significant initiative is the Build Better Tomorrow (BBT) program, which provides free land and training to young agripreneurs.

This initiative is designed to attract youth into coffee farming, addressing the challenge of an ageing farmer population.

Additionally, the government is pushing for increased domestic coffee consumption, with a target of raising local consumption from 7 per cent to 15 per cent by 2030. This shift will create a more sustainable coffee economy that is not solely reliant on exports. To enhance value addition, Tanzania is revamping Tanzania Instant Coffee Company (TANICA) and empowering coffee cooperatives.

Philemon Yang, the President of the United Nations General Assembly (UNGA), visited Equity Bank for high-level discussions on youth innovation, digital technology, and sustainable development. During the visit, he was hosted by Equity Group’s Chairman, Prof Isaac Macharia, alongside other Board members and senior managers.