PAMA seeks boost in local agrochemical production for food security, growth

The National Agricultural Land Development Authority

By Merit Ibe      

 

As Africa confronts rapid population growth, climate-related agricultural challenges, and rising food import bills, the Pan African Manufacturers Association (PAMA) has identified agrochemicals, such as fertilisers, crop protection products and soil enhancers as essential inputs for improving farm productivity and stabilising food supply chains across the continent.

Under the leadership of its President, Mansur Ahmed of Nigeria, PAMA emphasised that the agrochemicals sector plays a strategic role beyond primary agriculture. Positioned at the intersection of farming and manufacturing, the sector is becoming a key component of Africa’s agro-industrial value chain.

The association noted that growing food security needs, expanding arable land, and evolving farming practices are driving demand for crop nutrients and protection products. This trend presents significant opportunities for backward integration, local formulation, distribution, innovation, and export expansion.

According to PAMA’s 2026 report, citing data from Mordor Intelligence, Africa’s agrochemical market was valued at approximately $11.7 billion in 2025 and is projected to reach $14.6 billion by 2030. The steady growth is attributed to rising food demand, population increase, climate pressures, and greater technological adoption in agriculture.

Fertilisers account for more than 50 per cent of the market share, reflecting decades of soil nutrient depletion across sub-Saharan Africa. Meanwhile, plant growth regulators are among the fastest-growing segments as farmers adopt advanced crop health practices. The pesticides market, valued at $3.94 billion in 2025, is expected to grow to $4.66 billion by 2030 at a compound annual growth rate of 3.43 per cent.

Nigeria remains Africa’s largest agrochemical market, supported by private sector expansion and domestic fertiliser production. Morocco continues to leverage its phosphate resources to supply blended fertilisers to West African markets, while Kenya, Tanzania, and Ghana are advancing digital credit and warehouse systems to improve access. Egypt and Algeria are also exploring green ammonia production for more sustainable fertilisers.

Despite strong growth prospects, the sector remains heavily import-dependent, with over 90 per cent of inputs sourced externally from countries such as China, Russia, Morocco, and the Middle East. Weak value chains, limited market access for small producers, post-harvest losses, climate change impacts, and regional conflicts further constrain growth.

High logistics costs also pose a major challenge. In landlocked countries, transport costs can account for up to 50 per cent of final retail prices. Additionally, infrastructure deficits including poor roads, unreliable energy supply, and limited storage facilities continue to hinder distribution and access to markets.

A shortage of technical capacity in agrochemical manufacturing further limits industry efficiency.

PAMA, therefore, called for coordinated action by governments, private investors, and regional institutions to strengthen local manufacturing, deepen value chains, and improve market access. The association urged African countries to prioritise domestic and regional production particularly fertiliser blending, formulation, and packaging through targeted fiscal incentives, affordable industrial financing, and reliable energy supply.

It also advocated regulatory harmonisation under the African Continental Free Trade Area (AfCFTA) to enable seamless cross-border trade in agrochemical products, while cautioning against excessive taxation that could undermine competitiveness.

To unlock the sector’s full potential, PAMA stressed the importance of scaling up investment in infrastructure, skills development, and technology adoption. Strengthening vocational training, industry–academia collaboration, mechanisation, and digital solutions will be critical to enhancing efficiency and product quality.

The association highlighted the need to better integrate smallholder farmers into agro-industrial value chains by strengthening cooperatives, expanding extension services, and promoting climate-smart agrochemical solutions that support inclusive and sustainable growth across Africa.

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