G-25 Nations Unite to Boost Africa’s Coffee Industry

G-25 Pushes for Increased Value of African Coffee

March 11, 2025

Tanzania Hosts Third African Coffee-Producing Nations Summit

Tanzanian President Samia Suluhu Hassan underscored the need for Africa to increase the value of its coffee industry during the Third Summit of the G-25, a coalition of 25 African coffee-producing nations. The high-profile event, held in Dar es Salaam, brought together presidents, ministers, and industry leaders to discuss strategies for maximizing the continent’s coffee potential.

African Coffee: A Valuable Yet Underappreciated Crop

For many, coffee appears to be just another common crop, often associated with street vendors selling freshly brewed cups using charcoal stoves. In urban neighborhoods across Tanzania and beyond, small groups—particularly men—gather at roadside coffee stands to discuss politics and sports over steaming cups of the beverage. However, despite its deep African roots, the real profits from coffee remain concentrated in European markets, leaving African growers with minimal benefits.

Tanzania ranks as the fourth-largest coffee producer in Africa, following Ethiopia, Ivory Coast, and Uganda. Other key African coffee-producing nations include Kenya, Rwanda, Burundi, the Democratic Republic of Congo (DRC), Malawi, Cameroon, Zimbabwe, Madagascar, and the Central African Republic. Additionally, Angola, Ghana, Guinea, Sierra Leone, Togo, South Africa, Algeria, Benin, Gabon, Equatorial Guinea, Liberia, and Nigeria contribute to Africa’s coffee output.

Tanzania Hosts G-25 Summit to Address Coffee Challenges

On February 21-22, 2025, Tanzania welcomed a distinguished delegation of leaders from 25 African coffee-producing nations for the Third G-25 Summit. The primary focus of the discussions was to elevate the value of coffee through increased processing within Africa, creating more job opportunities for youth and women.

“Kahawa inachangamsha…!” President Samia Suluhu Hassan exclaimed as she requested a cup of coffee before delivering her speech to an audience of high-ranking officials and industry stakeholders.

She emphasized that Africa must take strategic steps to enhance coffee production and value addition by 2035, expressing concern over the continent’s role as a raw material supplier while wealthier markets reap the financial rewards.

Tanzania’s Commitment to Coffee Value Addition

President Samia highlighted Tanzania’s proactive efforts through initiatives such as the ‘Jenga Kesho iliyo Bora’ (BBT) project, which seeks to modernize coffee farming and processing. She invited other African nations to learn from Tanzania’s approach to fostering youth employment in the agricultural sector.

“Beyond coffee, BBT also supports the cultivation of other cash crops, livestock farming, and fisheries. In Tanzania, every crop is considered a commercial crop, and we are willing to share our knowledge with any country interested in learning,” she stated.

To further cement Tanzania’s role in coffee value addition, President Samia announced a national goal to process 20-25% of locally produced coffee within the country by 2030. The lack of domestic processing plants forces African nations to export raw coffee beans at lower prices, only to import processed coffee at significantly higher costs.

The Economic Disparity in the Coffee Industry

Statistics reveal that Africa exports unprocessed coffee worth approximately $3 billion, while importing processed coffee valued at $50 billion. President Samia lamented this economic imbalance, highlighting the irony of African nations producing high-quality coffee yet failing to retain significant financial gains.

She cited that nearly three billion cups of coffee are consumed globally each day, with African coffee being among the finest. However, due to inadequate processing capabilities and unfavorable trade structures, Africa captures only 0.3% of the $500 billion global coffee industry.

“In the 1960s, Africa accounted for 25% of global coffee production, but today, that share has dwindled to just 11%. Despite growing demand, our share of the market continues to shrink, meaning we must take urgent action,” she added.

The Dar es Salaam Declaration: A Roadmap for African Coffee Growth

During the summit, African coffee-producing nations adopted the Dar es Salaam Declaration, committing to strengthening research, innovation, and investment in coffee value chains. One of the key resolutions was urging the African Union (AU) to ensure the Inter-African Coffee Organization (IACO) plays a pivotal role in Africa’s discussions with the European Union (EU) on coffee trade policies.

Agriculture Minister Hussein Bashe, reading the declaration, stated that the G-25 nations also agreed to invest in local coffee processing facilities and promote domestic coffee consumption.

“By 2035, we aim to process at least 50% of African-grown coffee within the continent. This will require embracing advanced technologies and fostering intra-Africa coffee trade,” said Bashe.

Africa’s Call for Investment in Coffee Processing

In addition to advocating for AU and IACO engagement in policy negotiations with the EU, the summit participants called for the establishment of coffee research centers and processing plants across Africa. They urged African governments to support increased domestic coffee consumption and empower citizens to invest in coffee-related businesses.

Burundian Agriculture Minister and IACO Chairman, Prosper Dodiko, affirmed Burundi’s commitment to implementing the summit’s resolutions, recognizing coffee as a vital driver of economic growth at individual, national, and international levels.

Tanzania Coffee Board (TCB) Director General Primus Kimaryo echoed this sentiment, reiterating the importance of uniting African coffee producers to revolutionize the industry and create employment opportunities for young people and women.

Private Sector and Industry Stakeholders Welcome the Initiative

Amir Hamza, CEO of Amir Hamza Ltd, a Tanzanian coffee company, lauded President Samia for hosting the summit, emphasizing its significance in shaping the future of the African coffee sector.

“The first summit was held in Kenya, the second in Uganda, and now Tanzania has hosted the third. As a key player in the coffee industry, I believe these resolutions will propel Africa toward a future where we own coffee processing plants and fully control our product’s value chain,” said Hamza.

The summit concluded with a collective resolve to transform Africa’s coffee industry, ensuring that the continent benefits from the vast opportunities it offers. Leaders stressed the importance of continued collaboration and commitment to driving policy changes that will place Africa at the forefront of the global coffee trade.