ISM Agrifarms, a global agribusiness with operations in Africa, is well-positioned to benefit from the recently launched African Continental Free Trade Area (AfCFTA) which is projected to become an enormous, unified market of 1.7 billion people with an estimated US$6.7 trillion in consumer and business spending by 2030.

This historic agreement is set to promote intra-African trade, and international exports, and provide equal opportunities for businesses across the continent. The removal of tariff and non-tariff barriers will enable more efficient supply chains and expansion into new markets, benefiting both large companies like ISM Agrifarms and small and medium-sized businesses. Ultimately, the AfCFTA will pave the way for businesses like ISM Agrifarms to expand their operations and make significant contributions to the continent’s economic development.

The AfCFTA is a landmark agreement signed by 44 African Union member states in March 2018. Its aim is to create a single market for goods and services across the continent, boosting intra-African trade and improving economic integration. A key feature of the agreement is the elimination of import tariffs, which has the potential to significantly increase trade in agriculture within the continent. A recent report projects that the AfCFTA could boost intra-African agricultural trade by an impressive 574% by 2030, assuming that trade barriers are reduced. This would make it easier for farmers, agribusinesses, and other stakeholders to trade their products within the continent.

The report identifies fish and meat as two industries with potential for investment as demand for these products is expected to increase with rising incomes across the continent. However, the lack of local production of inputs like fish feed is a significant barrier to expansion. To overcome this challenge and transform the fragmented market of small producers into full value chains, the report recommends establishing regional hubs to facilitate intra-African trade. Africa’s agricultural sector has many competitive advantages, including a wide range of climates, a high percentage of arable land, and counter-seasonality to the northern hemisphere. Agro-processing, seen as a key sub-sector of manufacturing, offers greater stability in world prices for processed agricultural products compared to raw products.

Companies that invest in value chains for inputs, equipment, packaging, specialized logistics, marketing, and retail can tap into the potential of the sector, as exemplified by South Africa’s integrated value chain. Such investment can create jobs and drive economic growth on the continent. In addition to increasing trade and investment, the AfCFTA can help reduce dependency on foreign agricultural inputs, enhancing food resilience on the continent.

To sustain higher levels of trade, significant investments in inputs and infrastructure are necessary. Developing value chains across Africa can play a critical role in unlocking the continent’s agricultural potential. The AfCFTA can also boost industrialization as it is expected to increase demand for locally manufactured goods, creating an opportunity for African countries to move up the value chain and increase exports of processed goods.

Aquaculture is one of the world’s fastest-growing food-producing sectors and now accounts for nearly half of the world’s fish production. 

ISM Agrifarms’ expertise in the aquaculture sector has been developed in tandem with our partners globally. As a company specializing in meat and fish farming, ISM Agrifarms is committed to promoting agricultural growth throughout Africa using innovative solutions like Recirculating Aquaculture System (RAS). With the African Continental Free Trade Area (AfCFTA) eliminating import tariffs and easing trade barriers, we are excited about the significant opportunities for expanding value chains and developing local markets in the continent’s fish and meat industries.

At ISM Agrifarms, we leverage our expertise and resources to advance these opportunities and contribute to sustainable agriculture across Africa. Our focus on producing high-quality meat and fish products positions us well to thrive in this new trade environment by providing fresh and healthy products year-round. To learn more about how our farming solutions, please contact us at 0797968817 or info@ismagrifarms.com.