Among the few African nations capitalizing on the opportunity presented by the Chinese government to acquire agricultural products from Africa, Kenya stands out with her avocado export. In his address to the final Forum on China-Africa Co-operation (FOCAC) meeting in 2021, President Xi Jinping pledged to boost China’s proportion of African exports. China has surpassed all other markets to become the number two destination for agricultural products exported from Africa.
Shanghai Greechain Information Science & Technology Ltd was founded by Lu Guifeng, Vice Chair of the China-Africa Business Council, to bring agricultural products from Africa to China. In 2022, the first cargo of Kenyan avocados landed in China. The export of avocados from Kenya is her most notable arrangement to date. A delegation led by the president of Kenya signed a deal with Greechain to sell agricultural products from Kenya to China. Kenya exported avocados worth $64 million to China from February to May 2023.
From unknown to a booming avocado market
Avocados, which were before unknown in China, have recently become quite popular there. With the sheer scale of the Chinese market, there is no doubt Kenya and the few South American countries now sending the fruit to China cannot satisfy the expanding Chinese demand. For Ghana and other agricultural economies in Africa, this is where the opportunity resides.
The fruit has traditionally not been heavily cultivated in Ghana. Yet, little by little, things are starting to shift. Already, the climate and soil are ideal for growing the fruit in this country. The Akuapem Gold Avocado Cultivation and Processing Limited, a company under the Ghana government’s ‘One-District One-Factory’ policy, located in the Eastern part of Ghana is building the capacity to package 300-400 metric tonnes of avocado fruit per day. According to the Chairman of the company, they grow a range of the fruit including the sought-after ‘Haas’ type from Kenya.
Among the numerous requirements that would have to be taken for Ghanaian avocados to be exported to China, targeted bilateral cooperation must be prioritized. This will involve collaboration between the Government of Ghana, the Chinese government, Ghanaian and Chinese private sector actors and Ghanaian farmers. This Collaboration is vital for surmounting the difficulties that lie in the path of trade between African countries and China, as the Kenyan experience has proven. Before shipping Kenya’s first shipment of avocados to China, Greechain had to negotiate a tariff reduction from Chinese authorities from 30% to 7%.
Moreover, Kenya had to wait three years to be able to access the Chinese market to export avocados, after striking an agreement in 2019. Exporting to the Chinese market comes with tremendous barriers. Producers and exporters must make sure all their producing farms, pack houses and fumigation treatment facilities are registered to have access to the market. Also, exported avocados must conform to appropriate Chinese phytosanitary laws and regulations, as well as pest control requirements.
How can Ghana access the Chinese avocado market?
For Ghana to access the Chinese market for avocado export, there is a need for some type of government-to-government engagement spearheaded by Ghana’s Trade Ministry. The outcome of such engagement should be an agreement for the Chinese government to cut tariffs on Ghana’s agricultural exports. Such an arrangement would instantly drive big-scale growth of avocados because of the assurance of a ready market. Yet the government must be intentional. I would advise sponsoring a couple of additional enterprises like Akuapem Gold Avocado Cultivation and Processing Limited to make sure a steady supply is secured.
What should follow is the courting of private investors to invest in infrastructure that will allow Ghanaian avocados to meet the stringent import demands of China, such as cold chain and fumigation facilities. Kenyan experience has demonstrated that this investment is vital for Ghanaian avocados to be approved to access the Chinese market.
Currently, Ghana does not sell many agricultural products to China. According to OEC World, Ghana’s exports to China are mostly from the extractives industry which excludes many Ghanaians from the value chain. With the agricultural export of avocados, many people such as farmers are guaranteed to benefit from the value chains. Therefore, for Ghana to obtain maximum profit from its trade with China, agriculture should be promoted.
Amodani is a past student of Koforidua Technical University. He is majoring in Biomedical Engineering. He has served as the past president of KTU Debate and Public Society. In that capacity, he helped students understand local and global issues and the impact they can have through constructive dialogue and debate. He is passionate about community advocacy and development. He aims at engaging in national and international politics after pursuing graduate studies in International Relations and diplomacy.
