Africa moves to revamp coffee sector with bold declaration at G25 summit

Dar es Salaam.  African leaders and industry experts from 25 coffee-producing nations have resolved to invest in research, value addition, and modern technology to strengthen the coffee value chain.

These commitments were outlined in the Dar-es-Salaam Declaration, signed at the conclusion of the 3rd G25 Africa Coffee Summit, held in Tanzania from February 21-22, 2025.

With over 1,500 participants, including policymakers, coffee stakeholders, and financial institutions, the summit focused on addressing declining production, low domestic consumption, and Africa’s minimal share in the $500 billion global coffee trade.

Themed, Unlocking Employment Opportunities for the Youth through Regeneration of the African Coffee Industry, the meeting underscored the need for a paradigm shift in Africa’s coffee business.

The declaration read by Tanzania’s Minister of Agriculture, Hussein Bashe, emphasised the need for investment in research to develop new high-yield, high-quality coffee varieties that are resilient to climate change, pests, and diseases.

This move aims to increase productivity and ensure sustainable farming.

With 90 percent of Africa’s coffee exported in raw form, the continent remains locked out of the most profitable segments of the coffee trade.

Leaders have now committed to increasing local coffee processing and consumption. Governments are expected to support local roasters and encourage citizens to drink African coffee.

Chairman of the Inter-African Coffee Organisation (IACO) and Burundi’s Minister of Agriculture, Prosper Dodiko, stressed that Africa is one of the biggest coffee producers but ironically one of the smallest consumers.

He emphasised that the continent must change its habits and promote coffee consumption among its people.

A critical target has been set: half of Africa’s coffee should be roasted and traded within or outside the continent by 2035.

This is a major shift from the current situation where coffee-producing countries export green beans and import finished products at higher prices.

If implemented, this resolution will ensure more jobs, better earnings for farmers, and increased revenue for governments.

Technology will play a key role in coffee production, processing, and marketing. African leaders agreed to invest in mechanization, digital marketing, and sustainable farming technologies.

Tanzania is already using technology to monitor coffee prices and market trends, noted Minister Bashe.

He emphasised that the continent needs to scale up these efforts to ensure that farmers benefit from fair pricing and global market insights.

Beyond these commitments, African nations made several strategic requests, including urging the African Union to represent IACO in negotiations with the European Union over new regulations like the European Union Deforestation Regulation (EUDR), which affects coffee exports.

Member countries will also facilitate the creation of specialised coffee research centres to drive innovation, training, and expertise.

Governments were urged to launch initiatives that encourage citizens to embrace coffee drinking, while leaders called for policies that empower private investors to engage in coffee value addition through public-private collaborations.

Tanzania, a major coffee producer, is already implementing strategies to transform its coffee industry.

Minister Bashe outlined several initiatives, including investing in research institutions like Tanzania Coffee Research Institute (TaCRI) to develop climate-resilient coffee varieties, distributing subsidised seedlings and fertilizers to smallholder farmers.

The strategy, he said, aimed to improve productivity, and engage youth through the Build Better Tomorrow (BBT) programme, which provides land and training to young coffee farmers.

The government also aims to increase local coffee consumption from 7 percent to 15 percent by 2030, reducing dependence on exports.

Additionally, Tanzania is strengthening Tanzania Instant Coffee Company (TANICA) and empowering cooperatives to process and package coffee locally.

President Samia Suluhu Hassan, in her closing remarks, emphasised the urgency of value addition. She stated that Africa must reclaim its position in the global coffee market and stop being mere exporters of raw beans.

The figures are clear: Africa only earns 0.5 percent of the $500 billion global coffee trade.

“While Africa produces a significant share of the world’s coffee, over 12 percent of value-added coffee globally is imported by African countries themselves. This must change,” she said, adding:

“By 2035, at least half of Africa’s coffee should be processed within the continent before export. The profits lie in the value chain, not just production.”  

The 4th G25 Africa Coffee Summit will be held in Ethiopia in 2027, where progress on these commitments will be reviewed.

For Africa, the Dar-es-Salaam Declaration is more than just a document; it is a roadmap for reversing decades of missed opportunities in the coffee sector.

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A coffee agronomist, Mr Justine Kweka, noted that without research, Africa will remain a raw material exporter with no control over its coffee pricing.

“Investing in research will allow the continent to create varieties suitable for its changing climate and market demands,” he said.

An agribusiness expert, Ms Lucy Mwangoka, pointed out that Africa is losing billions by exporting unprocessed coffee.