Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe has criticized the growing trend of global tariff escalation, warning that it continues to disadvantage African economies by limiting the continent's ability to benefit fully from its agricultural resources.
He called on African nations to reduce their reliance on exporting unprocessed agricultural produce and instead prioritize value addition to strengthen economic growth and create jobs.
Speaking during a regional forum on trade and agriculture, Kagwe said Africa has for decades remained trapped in a cycle of exporting raw materials while importing expensive finished products.
He argued that the practice has denied the continent significant economic opportunities and slowed industrial development despite its vast agricultural potential.
The Cabinet Secretary noted that tariff escalation—where importing countries impose higher tariffs on processed goods than on raw materials—discourages African countries from investing in manufacturing and agro-processing industries.
According to Kagwe, the practice makes it easier for African nations to export raw commodities while making processed products less competitive in international markets.
He described the global trade imbalance as one of the major obstacles to Africa's industrial transformation, saying the continent must adopt deliberate policies that encourage local processing of agricultural products before export.
"We cannot continue exporting jobs and importing poverty by shipping raw produce to foreign markets," Kagwe said.
"Africa has the capacity to process its agricultural products, add value, and earn significantly more from international trade."
Kagwe emphasized that value addition would not only increase export earnings but also generate employment opportunities, especially for young people.
He said expanding agro-processing industries would stimulate manufacturing, improve farmers' incomes, strengthen rural economies, and reduce dependence on imported finished goods.
The CS urged African governments to work together in developing regional industries capable of processing commodities such as coffee, tea, cocoa, cotton, fruits, vegetables, and other agricultural products.
He noted that collaboration under regional trade agreements could help build competitive value chains while increasing intra-African trade.
He also encouraged greater investment in modern technology, research, infrastructure, and industrial parks to support agro-processing industries across the continent.
According to Kagwe, these investments are essential if African countries are to compete effectively in global markets and maximize returns from their natural resources.
The Cabinet Secretary further challenged financial institutions and development partners to increase funding for value addition projects, particularly those targeting smallholder farmers and small and medium-sized enterprises.
He said access to affordable financing remains one of the biggest barriers preventing many businesses from expanding processing capacity.
Kagwe observed that while Africa produces a significant share of the world's agricultural commodities, much of the value generated from these products is captured elsewhere due to limited local processing.
He argued that reversing this trend would improve the continent's trade balance and strengthen economic resilience against global market fluctuations.
He also called for the removal of non-tariff barriers that continue to hinder trade among African countries, saying stronger regional markets would encourage investment in manufacturing and create greater demand for locally processed goods.
The Cabinet Secretary pointed to the opportunities presented by the African Continental Free Trade Area (AfCFTA), saying the agreement provides an important platform for expanding regional commerce and building stronger industrial value chains.
He urged member states to fully implement the agreement to unlock the continent's economic potential.
Economists have consistently argued that value addition is critical to Africa's long-term development. Processing agricultural products locally enables countries to earn higher export revenues, create skilled jobs, promote innovation, and reduce vulnerability to fluctuations in global commodity prices.
Analysts also note that strengthening agro-processing industries can improve food security by reducing post-harvest losses, enhancing product quality, and expanding access to international markets that demand processed and packaged goods.
Kagwe concluded by urging African leaders to adopt bold trade and industrial policies that prioritize local manufacturing over the continued export of raw materials.
He said the continent possesses the resources, workforce, and market potential needed to transform its agricultural sector into a major driver of economic prosperity.
His remarks add to growing calls for Africa to rethink its place in the global trading system by shifting from commodity exports to value-added production.
As countries across the continent pursue industrialization and economic diversification, the push to process agricultural produce locally is increasingly viewed as a key strategy for achieving sustainable growth, improving livelihoods, and securing Africa's position in global trade.