Agriculture Cabinet Secretary Mutahi Kagwe has challenged global trade policies that favour the export of raw agricultural commodities, saying they continue to deny African countries the full economic benefits of their farm produce and slow efforts to build strong local industries.
Speaking on Tuesday at the World Food Prize Foundation's DialogueNext Forum, Kagwe urged African nations to place greater focus on processing agricultural products locally before exporting them, arguing that value addition is key to creating jobs, growing industries and improving farmers' earnings.
The forum, held under the theme "Born to Feed the Future", brought together agriculture ministers, policymakers, scientists, development partners, private sector players and farmer organisations from Africa and other parts of the world.
Kagwe took issue with what he described as tariff escalation, a trade practice in which developed countries allow raw agricultural products to enter their markets at little or no duty while charging higher tariffs on the same goods once they have been processed.
According to the CS, such policies have made it difficult for many African countries to expand manufacturing and processing industries, as they encourage the export of raw commodities while the more profitable stages of production take place elsewhere.
"It is difficult to explain to an African farmer why it is acceptable to export raw coffee but prohibitively expensive to export roasted coffee," Kagwe said.
He noted that the impact of these trade arrangements goes beyond export revenues, affecting employment opportunities, industrial development and broader economic growth across the continent.
Kagwe said African countries should increasingly retain more of the value generated from agriculture by ensuring commodities are processed closer to where they are produced.
He cited Kenya's ban on the export of raw in-shell macadamia as an example of a policy aimed at promoting local value addition and supporting domestic processing industries.
The CS added that similar measures should be considered in the coffee and tea sectors so that activities such as processing, packaging and branding are carried out within producing countries.
"Every stage of processing completed within Africa creates jobs, increases farmers' incomes and strengthens rural economies," he said.
Kagwe said stronger agricultural value chains would also open up employment opportunities for young people in industries linked to farming.
He noted that increased investment in local processing would support job creation in manufacturing, transport, logistics and agricultural technology.
At the same time, the CS criticised what he termed as conflicting policies that undermine efforts to transform the agricultural sector.
He questioned why some governments champion agricultural industrialisation while imposing taxes on machinery needed for agro-processing, warning that such measures can discourage investment and slow growth.
Kagwe also called for financing models that respond to the unique nature of agriculture, including access to affordable long-term loans, flexible repayment plans and weather-indexed insurance products.
"If we truly believe in equitable global development, international trade rules must reward value addition, not punish it," he said.