Commodity in Focus: An Overview of Africa’s Soybean Market Trends

Africa’s production of soybeans is undergoing rapid, robust growth, as a result of increasing domestic and international demand.  

Key market players in the continent

Some of these include countries such as South Africa and Nigeria, as well as emerging producers like Ethiopia and Ghana. By 2050, the demand for soybeans is set to double across Sub-Saharan Africa. 

Despite the demand spikes, Africa merely contributes 1% of global soybean production. Average yields remain below global standards, presenting opportunities for enhancement through better farming practices and technology. This demand gap is being met heavily by imports - costly ones. 

In 2021, Africa spent 2 billion USD on soybean imports, which rose to 3 billion USD in 2021 - an increase of 55%.

Connecting routes - soybean’s trade potential

After the Department of Trade and Industry initiated investments in the new soybean processing plants in the year 2012-13, farmers became persistent in rotationally growing soybeans. Since then, the trading potential of soybeans has observed a hike. 

• Intra-African trade 

According to World Bank estimates, the AFCFTA might stimulate foreign direct investment, which is predicted to rise by between 111% and 159% and increase Africa's exports to the rest of the world by 32% by 2035.

• Global demand

Soybeans’ global demand, specifically for biofuel and animal feed, is expected to remain strong, giving African producers export opportunities.

• Value addition

The local processing of soybeans into products such as soymilk, tofu, and animal feed holds some potential for value addition, creating jobs and enhancing economic growth.

While there is potential for the trade potential of soybeans, there is also a fair share of challenges that the soybean market presents.

• Low productivity due to limited access to quality seeds and inputs
• Inadequate infrastructure for storage, transportation, and processing 
• Access to finance remains a major challenge for smallholder farmers
• Quality and traceability concerns need to be addressed to access premium markets

Accordingly, the industry is receiving support from the government, in the form of policies promoting soybean cultivation. Furthermore, there have been initiatives and advancements supporting the same.

How Torq Commodities comes into the picture

Our team actively engages with farmers, processors, and other stakeholders to develop transparent and robust supply chains.

By doing so, we promote ethical trade practices and sustainable sourcing measures, ensuring that we operate for the planet’s well-being.

Over the years, we have successfully carried out shipments sustainably, with an emphasis on timely and careful process executions. For more on them, visit our website at www.wearetorq.com.