Increasing agrochemical exports to African markets

Trade Focus

Allan Majuru

Under President Mnangagwa’s Second Republic, the prioritisation of agriculture is propelling Zimbabwe towards becoming a key player in Africa’s agrochemical sector.

The focus on agricultural modernisation and industrialisation has fostered growth in the broader agriculture sector, creating opportunities for local companies to diversify their product range and expand into new markets.

This strategic emphasis is positioning Zimbabwe competitively within Africa’s agricultural landscape, particularly in regional markets such as Mozambique, Zambia, Botswana and Tanzania.

The agrochemicals sub-sector, encompassing fertilisers, pesticides and other vital agricultural inputs, is undergoing significant transformation.

Zimbabwean agrochemical manufacturers are scaling up production, leveraging local processing of raw materials to reduce import reliance and lower costs.

This approach has enabled them to offer tailored, cost-effective solutions that meet the unique needs of African farming systems.

As a result, Zimbabwean products are becoming increasingly competitive across Southern African markets.

In addition, sustainability and innovation trends are also reshaping the sector.

For example, local manufacturers are adopting environmentally friendly practices, such as developing bio-based and organic agrochemical solutions, positioning Zimbabwe as a responsible player in regional value chains.

This focus on sustainability is enhancing the country’s reputation in agrochemical export markets.

Global market size

According to Trade Map 2024, global imports of agrochemicals reached US$144,3 billion in 2023, reflecting a robust growth trajectory.

Within this global context, the Southern African Development Community (SADC) market alone imported US$4,4 billion worth of agrochemicals in 2023, up from US$2,7 billion in 2019.

Common Market for Eastern and Southern Africa (COMESA) imports showed similar growth, climbing to US$4,9 billion in 2023 from US$3,1 billion in 2019.

Africa’s agrochemical market is highly competitive, with imports dominated by countries such as China, Morocco and Russia.

According to Trade Map, China alone accounted for US$2,2 billion in exports to African countries in 2023, followed by Morocco at US$1,1 billion and Russia at US$816 million.

Regional producers like South Africa and Egypt are also significant players, exporting US$685 million and US$563 million, respectively.

This competitive environment underscores the need for Zimbabwean companies to carve out a niche, potentially focusing on innovative, eco-friendly agrochemicals or leveraging proximity to regional markets to reduce logistical costs.

Analysis of bilateral trade data involving African countries reveals that specific product categories present significant opportunities for Zimbabwean exporters.

Mineral or chemical fertilisers containing nitrogen, phosphorus and potassium (NPK) dominate regional demand, with imports in African markets reaching US$1,4 billion in 2022.

Similarly, products like insecticides, herbicides and fungicides — essential for improving crop yields — saw imports of US$296 million within African markets in 2023.

Key opportunities

Global and regional agriculture sectors are expanding, and the demand for agrochemicals continues to rise, presenting Zimbabwe with a unique opportunity to tap into these markets and drive export-led growth.

Closer to home, the demand for fertilisers and crop protection products is growing across Southern Africa due to the region’s reliance on agriculture as a key economic activity.

The potential for export growth is particularly high in countries such as Zambia, Malawi and Mozambique, which are all experiencing an increase in agricultural activity.

As demand for fertilisers and crop protection products increases in these countries, Zimbabwean companies are well-positioned to capitalise on this growth by offering cost-effective solutions that cater for the specific agricultural needs of each market.

For example, the different priority crops in various SADC markets all present opportunities for specialised agrochemical products.

In addition to existing opportunities, several emerging trends in the agrochemical market across Southern Africa present further growth potential for Zimbabwe.

One key area of interest is the rising demand for specialised agrochemicals tailored to combat new and evolving agricultural challenges.

With climate change impacting crop yields, many countries in the region are facing new pest and disease pressures.

This has created a need for advanced pest management solutions and fungicides.

Zimbabwean companies that focus on the development and supply of pest-resistant agrochemicals, particularly those suited to new challenges such as fall armyworm infestations in maize, can secure a competitive advantage.

Another emerging trend is the demand for more efficient and environmentally sustainable agrochemicals.

With African farmers embracing sustainable farming practices, the market for organic and bio-based pesticides and fertilisers is growing.

Given the push for reduced environmental impact, Zimbabwean companies with the ability to produce eco-friendly products, such as bio-pesticides and organic fertilisers, are well-positioned to meet the needs of this evolving market.

Additionally, there is a growing need for agrochemicals that cater for precision farming, a practice gaining traction across the continent.

Precision farming involves the utilisation of technology to optimise the use of inputs like water, nutrients and pesticides.

Agrochemical companies that can provide products compatible with this high-tech approach will find new market opportunities, especially in more advanced agricultural economies such as South Africa and Namibia.

Companies in Zimbabwe can invest in research and development of precision agrochemical solutions that cater for this need, giving them a foothold in a burgeoning market.

Furthermore, the expansion of agro-industrial parks across Africa is also an important development for Zimbabwe’s agrochemical sub-sector.

These parks, supported by Government incentives and international funding, focus on increasing local production of agricultural inputs, including agrochemicals.

Zimbabwean firms that establish a presence in these parks or partner with local businesses within them stand to benefit from reduced costs and improved access to regional markets.

In addition, the growth of agricultural programmes in countries like Kenya, Ethiopia and Egypt is creating new demand for agrochemicals.

As these countries increase their focus on large-scale commercial farming, the need for specialised agrochemical products grows.

Zimbabwe can capitalise on these export opportunities by focusing on producing fertilisers, pesticides and herbicides designed for export crops like tea, flowers and cotton, which are key in these markets.

In addition, Zimbabwe’s agrochemical producers looking to strengthen their presence in regional markets must leverage existing bilateral and multilateral trade agreements.

These include African Continental Free Trade Area, SADC and COMESA trade agreements.

These reduce tariffs and streamline cross-border trade, enabling Zimbabwean agrochemicals to be priced competitively in neighbouring countries such as Zambia, Botswana, Namibia and Mozambique.

For local producers, this competitive pricing advantage provides an avenue to expand their market share and establish long-term trade relationships.

Local producers looking to grow their presence in regional markets can benefit from economies of scale, driving further efficiencies in production and distribution while solidifying Zimbabwe’s role as a key agrochemical supplier in Southern Africa.

Allan Majuru is the chief executive officer of ZimTrade.