How Can Africa Conquer Challenges and Capture Market Potential in the Halal Food Industry?

How Can Africa Conquer Challenges and Capture Market Potential in the Halal Food Industry?

How Can Africa Conquer Challenges and Capture Market Potential in the Halal Food Industry?

Agriculture and the Halal food sector play an important role in the economies of many African countries. Despite its growth potential, the sector still faces several challenges that limit its development.

In this article, we will explore the agricultural and Halal food products that Africa imports and exports and the challenges and opportunities in the sector.

Overview of African Trade

African countries import and export various agricultural and Halal food products. The most common agricultural products exported from Africa are:

  • coffee,
  • cocoa,
  • bananas,
  • tea,
  • spices like ginger and turmeric,
  • nuts like almonds and peanuts,
  • fruits like mangoes and avocados,
  • vegetables like tomatoes and onions.

In 2018, coffee exports from African countries were valued at US$7.2 billion, while cocoa exports were valued at US$5.5 billion. Coffee exports from Africa were valued at nearly US$2.5 billion in 2021.

Ethiopia was the leading exporter, earning around US$1.2 billion in coffee exports. Uganda followed with an export value of US$594.2 million as of the same year.

Additionally, Africa exported US$6.8 billion worth of cocoa beans in 2020. Côte d'Ivoire and Ghana were Africa's leading cocoa exporters. They exported cocoa at nearly US$5 billion and US$3 billion, ranking them first and third in the world, respectively.

Cameroon and Nigeria were other large exporters on the continent, with around US$563 million and US$349 million in cocoa exports, respectively.

Regarding Halal food, African countries import and export products that meet Islamic dietary laws, including meat, poultry, dates, spices and seasonings, and olive oil. According to the World Halal Council, the global Halal food market is projected to reach US$1.93 trillion by 2023.

Challenges Of Africa's Agricultural And Halal Food Sector

Despite the growth potential, Africa's agricultural and Halal food sector faces several challenges. Poor infrastructure is a major issue. Many African countries lack the necessary roads, bridges, and storage facilities to support large-scale agriculture.

According to the World Bank, "Many African countries lack the necessary infrastructure to support large-scale agriculture, such as roads, bridges, and storage facilities, making it difficult to transport and store crops." (World Bank, 2019)

The lack of investment in agriculture is another challenge. The impact of climate change, pest and disease outbreaks, and competition from other regions add to the difficulties faced by the sector.

Opportunities For Africa's Agricultural And Halal Food Sector

Despite these challenges, there are also many opportunities for growth and development in Africa's agriculture and Halal food sector.

The global demand for agricultural and Halal food products is increasing, providing opportunities for African countries to increase their exports.

As per the Food and Agriculture Organization (FAO) of the United Nations, the demand for food in Africa is expected to double by 2050. With large areas of fertile land and a favourable climate, many African countries have great potential for agricultural growth.

The emerging middle class in many African countries is driving demand for diverse and high-quality food products, offering opportunities for local producers to meet this demand. Some African governments are taking steps to support their agricultural sectors by providing subsidies and investing in infrastructure.

According to the African Development Bank, the Halal African agriculture sector received US$3.5 billion in investment in 2018. The growth of Halal tourism in many African countries also drives demand for Halal food products, creating opportunities for local producers to tap into this market.

According to Future Market Insights, the global Halal tourism market holds a forecasted revenue of US$ 255.0 billion in 2022 and is likely to reach US$ 365.0 billion by the end of 2032.

The Road Ahead

While Africa's agricultural and Halal food sector faces several challenges, there is also great potential for growth and development.

By addressing these challenges and capitalising on available opportunities, African countries can strengthen their agricultural sectors and contribute to economic growth and development. With the help of digital trade platforms, African farmers can connect with buyers, overcome trade barriers, and access new markets, thus increasing the growth of their agriculture and Halal food sector.

OneAgrix is a digital platform that helps to solve African trade challenges by providing access to a global network of Halal food buyers and markets, offering all payments and freight solutions under one roof, and building credibility among sellers and buyers.

OneAgrix is revolutionising the agriculture industry by helping smallholder farmers overcome the key systemic barriers that have hindered their ability to trade globally. Through digitising trade, acquiring necessary documentation and certifications, and providing a platform to sell their produce, farmers can now access broader markets.

Furthermore, OneAgrix has implemented DNA traceability and serialisation solutions, which offer multiple benefits to suppliers. Traceability ensures that the origin, authenticity, and quality of the products are verified, fostering consumer trust in the Halal food sector.

Serialisation solutions create a unique identifier for each product, enhancing supply chain transparency and enabling easier tracking and tracing of goods.

These advanced technologies improve the overall efficiency of the supply chain and provide suppliers with valuable insights for better decision-making and risk management.

By adopting OneAgrix's digital ecosystem, smallholder farmers in Africa can successfully navigate the global trade landscape and tap into the growing halal food market.

The platform's efforts to boost trade in Africa include working with the Nigerian Government under the "Nigeria Feeds the World'' initiative and partnering with the African Agri Council NPC to formalise trade for smallholder farmers and identify trade opportunities.

OneAgrix presents a unique opportunity for the Halal food sector to satisfy the need for quality food. Claim your FREE supplier account now!