Africa’s agrochemical market to reach $14.6b
From an estimated $11.7 billion in 2025, Africa’s agrochemical market is projected to expand steadily by $14.6 billion through the end of 2030, mostly driven by rising food demand, population
- Nigeria is continent’s largest market
From an estimated $11.7 billion in 2025, Africa’s agrochemical market is projected to expand steadily by $14.6 billion through the end of 2030, mostly driven by rising food demand, population growth, climate pressures, and technological adoption.
Mordor Intelligence report, which made the projection, said within the agrochemical sector, fertilisers dominate, accounting for over 50 per cent of market share, as decades of nutrient depletion have left soils across sub-Saharan Africa deficient and in need of replenishment.
The report also said pesticides (crop protection chemicals) are valued at approximately $3.94 billion in 2025, but are projected to grow to $4.66 billion by 2030 at a 3.43 per cent, reflecting increased investment in crop protection to reduce yield losses.
Mordor Intelligence report, however, revealed that Nigeria maintains its position as the continent’s largest market, supported by private sector growth and industrial fertiliser production, while Morocco utilises its phosphate resources through environmental investment programmes, supplying blended fertilisers to West African markets.
Kenya, Tanzania, and Ghana, the report said, are developing digital agricultural credit and warehouse systems to enhance agrochemical accessibility, while Egypt and Algeria are testing green ammonia production for sustainable fertilisers.
Overall, the expansion of the agrochemical sector, the report stated, is not only crucial for agricultural productivity but also for industrial diversification, linking farming to manufacturing, packaging, logistics, and export opportunities across Africa.
It noted that as the continent grapples with rapid population climate-induced growth, agricultural stress, and rising food import bills, agrochemicals such as fertilisers, crop protection products, and soil enhancers have become critical inputs for boosting farm productivity and stabilising food supply chains.
Beyond the farm gate, however, the report said the agrochemicals sector occupies a strategic position at the intersection of agriculture and manufacturing, serving as an increasingly important component of Africa’s agro-industrial value chain.
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“There’s no doubt that the sector is increasingly becoming critical to Africa’s agricultural productivity and industrial diversification.
“Driven by rising food security needs, expanding arable land, and evolving farming practices, the sector offers a powerful pathway for backward integration, creating significant value-chain opportunities across manufacturing, local formulation, distribution, innovation, and export expansion as demand for crop nutrients and crop protection inputs continues to grow,” it stated.
The report, however, said despite how potentially promising the sector looks, Africa’s agrochemical industry’s value chain remains heavily import-dependent, with over 90 per cent of inputs sourced externally, primarily from China, Russia, Morocco (for phosphates), and the Middle East.
According to the African Union Continental Agribusiness Strategy, weak value chains have left many small producers marginalised, with limited access to markets, scarce opportunities for product processing, and underdeveloped mechanisms for competitiveness and quality assurance.
Part of the challenges has also been attributed to the low productivity and post-harvest losses in the agricultural sector due to climate change and regional conflicts, reducing the volume of raw materials available for processing.
Technology adoption in the industry is also believed to be limited, with mechanisation and digital solutions still underutilised, constraining efficiency across production and processing in the agrochemical industry.
The cost of logistics in the value chain continues to remain a burden to players in the sector, with Mordor Intelligence report pointing out, for instance, that transport costs in landlocked countries account for up to 50 per cent of final retail prices, while Ethiopia experienced significant increases in fertiliser prices in recent years.
Unfortunately, countries like Kenya have put a 16 per cent Value Added Tax (VAT) on agrochemicals through the 2025 Finance Bill, which may substantially increase production costs for manufacturers in that sector.
Also, infrastructure deficits, including poor roads, unreliable energy supply, and weak infrastructure, have continued to hinder distribution and access to markets.
Shortage of technical capacity in agrochemical manufacturing industries is also an issue, with many agribusinesses lacking the skilled personnel required for modern processing.
The report, however, put forward a number of strategies to get round the challenges and unlock the full potential of Africa’s agrochemical industry.
It said, for instance, that there must be a coordinated effort by governments, the private sector, and regional institutions to strengthen local manufacturing of the agro processing industry, deepen value chains, and improve market access.
It also said African countries must prioritise domestic and regional production of agrochemicals, particularly fertiliser blending, formulation, and packaging, through targeted fiscal incentives, access to affordable industrial finance, and a stable energy supply.
The report further said efforts must also be put in place to reduce Africa’s import dependence on agro-chemical products and input not only for the conservation of Africa’s foreign exchange but to encourage the expansion of local production capabilities of the domestic industries.
On its part, “We encourage the introduction of a simplified regulatory harmonisation strategy under the African Continental Free Trade Area (AfCFTA) to enable seamless cross-border trade in agrochemical products.
“Given the vast potential of the sector, private investors are encouraged to take advantage of the opportunities that the sector presents by calling for a government-private investment partnership in the expansion of the regional production hubs.
“At the same time, governments should avoid policy measures—such as excessive taxation on agrochemicals—that undermine competitiveness and raise production costs, particularly for energy- and logistics-intensive manufacturers,” Pan-African Manufacturers Association (PAMA), said.
PAMA, the continental voice of manufacturers, serves as a continental advocacy platform representing and promoting African manufacturers through strategic partnerships and policy engagement.
Currently led by Interim President Engr. Mansur Ahmed and Interim Co-Secretary Segun Ajayi-Kadir, PAMA, added that investment in infrastructure, skills, and technology adoption must be scaled up.
The Association also stressed the need to improve transport networks, storage facilities, and energy reliability to reduce logistics costs and price distortions, especially in landlocked countries.
“Equally important is strengthening technical capacity through vocational training, industry–academia partnerships, and support for mechanisation and digital solutions across the agrochemical value chain in order to enhance efficiency, product quality, and environmental stewardship.
“Finally, integrating smallholder farmers more effectively into agro-industrial value chains should remain a core priority for all governments of African countries to strengthen farmer cooperatives, expand access to extension services and digital platforms, and promote climate-smart and sustainable agrochemical solutions to boost productivity while ensuring inclusive growth,” PAMA stated.
