Issue: The African Continental Free Trade Area (AfCFTA) provides an opportunity to increase intercontinental trade and consumption of African coffee. However, many African traders describe trading under AfCFTA as complicated and hazardous. Understanding the AfCFTA framework and its implications for the coffee trade is vital to many African economies.

Panellists included: African Export-Import Bank; Ministry of Industry and Trade, United Republic of Tanzania; Dormans Coffee Limited (coffee company); Equity Bank Tanzania; Café Africa DRC.

Outcome of discussion: The panelists discussed opportunities and challenges of intra-African trade and how the respective institutions could play specific roles in trade facilitation to ensure the efficient movement of goods across borders. The challenge of increasing domestic coffee consumption in Africa was noted as complex and requiring a multi-pronged strategy. Some innovative financing solutions to bolster intra-African trade were presented, which can expand trade opportunities on the continent and beyond. In addressing these key areas, fostering a comprehensive dialogue on maximising the benefits of the AfCFTA for the coffee industry and promoting sustainable economic growth in Africa is critical. Governments have a crucial role in addressing policy constraints and the ratification of treaties that can enhance trade efficiency in Africa and make the AfCFTA a reality.

Issue: African-owned producers, processors, and exporters are becoming key players in a coffee industry valued at over $6 billion annually (at current free on-board prices). However, the sector faces significant risks, with market prices fluctuating by more than 50% in many years—and even doubling in 2024-25. Currency volatility further adds to the uncertainty. Despite these challenges, African-owned businesses often lack access to the advanced risk-management tools used by international firms to safeguard against such fluctuations.

Panellists included: Cooperative and Rural Development Bank (CRDB); National Microfinance Bank (NMB); Kyagalanyi Coffee Ltd, Uganda - Volcafe Group (trader); Bumaco Insurance.

Outcome of discussion: Making risk management tools accessible to African-owned businesses through local banks, insurance companies, and other institutions would offer significant benefits. While financial sector liberalization has expanded insurance options for larger coffee producers and traders—including stock, transit, weather, and crop insurance—smallholder farmers often lack access unless provided through cooperatives. Banks and microfinance institutions could collaborate to offer these products via smartphone apps, making them more widely available. Additionally, an integrated package combining price risk and crop insurance could be developed for smallholder farmers in exchange for a premium, enhancing their financial security.