Insights Into the African Crop Protection Market
9 October 2023 Egypt, with a history spanning over 5,000 years, has undergone significant changes and challenges, writes AgbioInvestor’s Derek Oliphant in a recent issue of AgriBusiness Global DIRECT. In the late 19th century, Britain took control of the country, but Egypt gained independence in 1922. One major development in the country’s history was the construction of the Aswan High Dam in 1971, which created Lake Nasser and had a profound impact on agriculture.
Egypt is home to the largest population in the Arab world, which puts immense pressure on its limited natural resources. This population growth, coupled with political instability resulting from involvement in Middle Eastern conflicts, has posed challenges for the country. After a period of military rule, President Elsisi was elected in 2014 and re-elected in 2018.
Agriculture plays a significant role in Egypt’s economy, accounting for 11.5% of GDP and employing 20.6% of the workforce. However, the sector faces limitations due to water scarcity. Efforts have been made to expand agriculture into the desert regions east and west of the Nile to increase cultivable land. The country’s agricultural policy aims to balance the production of crops for export to support the economy with the need to feed a growing population.
Egypt allocates a substantial budget for food subsidies, with a significant portion dedicated to bread and sugar supply. Key trends in agricultural production include the increase in cultivation of crops like mangoes, citrus fruits, onions, date palms, and potatoes driven by export demand. However, traditional crops such as cotton, cereals, maize, and rice have seen limited growth.
The country’s agrochemical industry relies heavily on imports, with China being the major source of products. Tunisia, on the other hand, has a free trade agreement with the EU for industrial goods and is working towards a more comprehensive agreement. Agriculture contributes 11.7% to Tunisia’s GDP and employs 13.8% of the labor force. The country faces challenges such as drought and a negative balance of trade for arable products.
Tunisia has banned the importation of genetically modified (GM) crops but allows GM crop research. It is in the process of developing a regulatory framework for the assessment of GM food. The country’s major crops include grains, olives for oil production, fruits, nuts, and vegetables. The agrochemical market in Tunisia is primarily reliant on imports, with France, Spain, Germany, the UK, and Italy being the main sources.
Zambia gained independence from Britain in 1964 but has faced economic uncertainty, political unrest, and dependence on copper exports. The country’s economy is vulnerable to commodity prices, and rural poverty and unemployment are significant issues. Zambia’s agricultural sector focuses on improving crop varieties, efficient use of fertilizers and agrochemicals, and irrigation technology to enhance food security and reduce poverty.
The Zambian government operates programs to support farmers, such as the Food Reserve Agency and the Electronic Farmer Input Support Program. However, the contribution of agriculture to GDP has been declining, and the government has struggled to meet its commitment to allocate 10% of the annual budget to agriculture. The country has implemented the Farm Block Development Program to promote agricultural growth and attract commercial farmers.
Zambia has limited agrochemical formulation capabilities and relies on imports from major multinational and local companies. The market is led by Chinese and Middle Eastern companies. The country’s climate varies from subtropical to tropical, and irrigation schemes have been implemented to mitigate the volatility of rain-fed production.
In conclusion, Egypt, Tunisia, and Zambia face unique challenges and opportunities in their agricultural sectors. While Egypt grapples with population pressure and limited resources, Tunisia focuses on trade agreements and crop diversification. Zambia’s economy heavily relies on copper exports, and the government aims to improve food security and reduce poverty through agricultural initiatives.
Learn more about the challenges facing crop inputs in Africa in AgriBusiness Global DIRECT.
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