Africa Market Special Report (Ⅱ): Exploring Innovation Opportunities in Cameroon and South Africa

Africa Market Special Report 

• Africa Market Special Report (Ⅰ): Decoding Agrochemical Market Potential of Ghana and Côte d'Ivoire

• Africa Market Special Report (Ⅱ): Exploring Innovation Opportunities in Cameroon and South Africa

From various angles, this special report taps into the development and demand changes in the agrochemical industry in the critical regions of Africa, using South Africa and Cameroon as the subject of analysis. Part of the information in this article comes from the presentations of Arthur Keegan, Chief Science and Technology Officer of Farm-Ag in South Africa, as delivered at the 2024 China Pesticide Exporting Workshop (CPEW) held in Hangzhou in July 2024. (Note: Some of the data in this article also comes from FAO. Due to the different data sources, the relevant content is only for reference of trends)

Arthur Keegan, Chief Science and Technology Officer, Farm-Ag, South Africa

Agrochemical dynamics and market demand in key countries of Africa

PART03 Cameroon: Establishment of an agricultural hub in Central Africa

Cameroon, located in central and western Africa, has become one of the critical agricultural-producing countries on the African continent in possession of abundant natural resources and superior geographical location, covering a total arable land area of 7.2 million hectares, of which 1.8 million hectares have been developed. Cameroon’s main crops include cash crops like coffee, cocoa, natural rubber, cotton, and oil palm, as well as food crops such as maize, cassava, rice, and millet.

The demand for agrochemical products has increased, with the aim of improving drought resistance and disease resistance. In the meantime, the government is encouraging the use of organic fertilizers to promote the development of sustainable agriculture. In 2019, the import of crop protection products hit $85 million, where the import of herbicides was about $45 million, accounting for 45%, while the import of fungicides was about $23 million, accounting for 27%, and the import of insecticides was about $20 million accounting for 24%. In 2023, $128 million -worth of crop protection products were imported.

According to FAO data, as shown in Figure 15, the use of pesticides in Cameroon has been on the rise in recent years, which increased from roughly 5,000 tons in 2011 to around 10,000 tons in 2020, then stabilized at about 10,000 tons, mainly being fungicides. According to information, the local mainstream pesticides include glyphosate, nicosulfuron, prometryn, Haloxyfop-P, S-metolachlor, lambda-cyhalothrin, bifenthrin, acetamiprid, mancozeb, and copper.

Figure 15  Trend of pesticide applications in Cameroon in 2011-2022 (ton)

In terms of pesticide registration, according to the Ministry of Agriculture of Cameroon and CPAC-CEMAC data (Figure 16), up to December 2022, Cameroon granted a total of 707 pesticide registrations, all of which are chemical pesticides, including 248 herbicides, 327 insecticides, 205 fungicides, and others.

Figure 16  Chemical pesticide registrations in Cameroon up to December 2022

Details of registrations (Figure 17-20)

• Among the insecticide registrations, lambda-cyhalothrin sees the most significant number of registrations in terms of the active ingredient, with 47 registrations, followed by cypermethrin, imidacloprid, acetamiprid, and emamectin benzoate.

  
  

• Out of the herbicide registrations, glyphosate has the most significant number of registrations among the active ingredients, with 40 registrations, followed by nicosulfuron, atrazine, triclopyr, and diuron.

  
  

• In terms of fungicide registrations, mancozeb had the most significant number of registrations among the active ingredients, with 32 registrations, followed by copper oxide, propiconazole, dimethomorph, and thiram.

  
  

• Among the registration types of formulations, EC, SC, and SL have a more significant number of registrations.

Figure 17  Top 10 insecticidal active ingredient registrations in Cameroon

Figure 18  Top 10 herbicidal active ingredient registrations in Cameroon

Figure 19  Top 10 fungicidal active ingredient registrations in Cameroon

Figure 20  Top 10 pesticidal formulation types in Cameroon

Despite the government’s efforts in the modernization of agriculture, the overall agricultural level remains relatively low, and the level of farm mechanization and information is not high enough, as agrarian production primarily relies on manpower and animal power. The system of agricultural research and technology extension is not readily in place, and farmer’s acceptance and application of new technologies are limited. In addition, the construction of agricultural infrastructures, such as irrigation systems, storage facilities, and processing equipment, is falling behind, which has restricted the improvement of the efficiency of agricultural production and the quality of farm products.

PART04 South Africa: Africa’s Innovation and practice of agricultural modernization

South Africa, located at the south end of the African continent, with its diverse climate and fertile soil, provides distinctive conditions facilitating the prosperity of agriculture. South Africa’s arable land accounts for about 13% of its total land, including 22% high-quality arable land, which lays a solid foundation for the diversity of the country’s agricultural production.

South Africa produces and processes a variety of crops, mainly maize, wheat, sugar cane, and barley. Among them, corn is the most important crop, accounting for about 40% of all crops. In terms of fruit and nuts, South Africa’s citrus, apple, and grapes enjoy a high reputation in the international market. In 2023, South Africa’s agricultural exports hit a historic high of $13.2 billion, up 3% year on year.

Agricultural production in South Africa has increased by more than 50% in the past 20 years, partly attributable to the application of GMO varieties, which shows the widespread use of biotechnology in the country. In terms of agricultural technology, South Africa has been at the forefront of Africa, where the broad application of agricultural mechanization, biotechnology, irrigation technology, and precision farming has not only improved the yield and quality of crops but has also provided support to the sustainable development of agriculture.

Drones are widely used in South Africa’s agricultural production for a wide range of purposes, including soil sampling, cropland analysis, seeding, and precision spraying of pesticides. According to the market research firm Industry ARC, the small drone market in South Africa is increasing. The market size is expected to reach ZAR2.5 billion (Approx.$138 million) by 2025, with an average annual growth rate of 22.35% in 2020-2025. So far, South Africa is the country with the highest application of drone technology on the African continent.

Due to the continuous development of agriculture in the country, the use of pesticides is huge. According to FAO data (Figure 21), pesticide use in South Africa increased from more than 30,000 tons in 2011 to more than 40,000 tons in 2022, accounting for 1/5 of the total use of pesticides in Africa. This data reflects South Africa’s continued demand for agrochemical products in the course of agricultural modernization, which also highlights South Africa’s leading position in African agriculture.

Figure 21  Trend of pesticide applications in South Africa in 2011-2022 (ton)

South Africa has been able to respond positively to the growing demand for agricultural production, mainly attributable to its extensive use of pesticides and constant innovation in agricultural technology. However, South Africa’s agriculture is also facing challenges of drought and power shortage. Not only does drought pose a serious threat to crop growth, but the power shortage, especially frequent power cuts, has also had a significant impact on agricultural production and processing.

Opportunities and challenges to agriculture of African countries

The in-depth analysis of the four representative countries – Ghana, Cote d'Ivoire, Cameroon, and South Africa, provides a clear picture of the diversity, potentials, and challenges of African agriculture. Overall, the use of pesticides is on the rise in these countries, reflecting not only the advancement of agricultural modernization but also farmer’s urgent need to improve crop yield and quality. The widespread use of chemical pesticides such as glyphosate, 2,4-D, and nicosulfuron could increase yield in the short term but may pose a threat to the environment and food safety in the long run. This has prompted these countries to pay attention to the development of biopesticides in search of more sustainable agricultural practices.

In terms of agricultural products, the four countries have all demonstrated the diversity of African agriculture. Cote d'Ivoire is an important global supplier due to its world’s largest production output of cocoa and cashew nuts; South Africa’s citrus, apple, grape, and other fruits are highly reputable in the international market; Cameroon’s coffee and cotton, as well as Ghana’s cocoa and maize, are also the pillars of their agricultural economy. These agricultural products are not only an important source of export earnings for their countries but are also the key to food security.

As regards technology application, South Africa appears at the forefront of agricultural mechanization, biotechnology, and precision agriculture, having set a good example for other countries in Africa. Furthermore, Ghana has also introduced GMO varieties. However, Ghana, Cote d'Ivoire, and Cameroon are also faced with various challenges in the application of technologies, such as the low level of agricultural mechanization, lack of financial support, and limited acceptability and application ability, revealing the unbalanced regional development of agriculture.

In general, the future of African agriculture depends on seven key factors: Infrastructure construction and development, investment in agricultural technology, access to financing, market access, sustainable agriculture, youth and women empowerment, and corporate partnership. By adequately addressing these issues, Africa is expected to play a more significant role in global agricultural development and make an essential contribution to fixing the local and international issues of food security. 

This article was originally published in AgroPages magazine 2024 Market Insight. Download to read more.