How the EU starves Africa into submission

By Calestous Juma. He is a professor of the practice of international development at Harvard Kennedy School.

"It is estimated that of all the food items imported by African countries, nearly 83 per cent comes from outside the continent. The rest comes from other African countries.

African leaders are seeking ways to feed their peoples and become players in the global economy.

In the second edition of The New Harvest: Agricultural Innovation in Africa, I argue that Africa can feed itself in a generation. However, efforts to achieve such an ambitious goal continue to be frustrated by policies adopted by Africa’s historical trading partners, especially the European Union.

There are at least three ways in which EU policies affect Africa’s ability to address its agricultural and food challenges: tariff escalation; technological innovation and food export preferences.

African leaders would like to escape the colonial trap of being viewed simply as raw material exporters. But their efforts to add value to the materials continue to be frustrated by existing EU policies.

Take the example of coffee. In 2014 Africa —the home of coffee— earned nearly $2.4 billion from the crop. Germany, a leading processor, earned about $3.8 billion from coffee re-exports.

The concern is not that Germany benefits from processing coffee. It is that Africa is punished by EU tariff barriers for doing so. Non-decaffeinated green coffee is exempt from the charges. However, a 7.5 per cent charge is imposed on roasted coffee. As a result, the bulk of Africa’s export to the EU is unroasted green coffee.

The charge on cocoa is even more debilitating. It is reported that the “EU charges (a tariff) of 30 per cent for processed cocoa products like chocolate bars or cocoa powder, and 60 per cent for some other refined products containing cocoa.”

The impact of such charges goes well beyond lost export opportunities. They suppress technological innovation and industrial development among African countries. The practice denies the continent the ability to acquire, adopt and diffuse technologies used in food processing. It explains to some extent the low level of investment in Africa’s food processing enterprises.

Usually, the know-how accumulated from processing exports such as coffee could be adopted for use on other crops and in other sectors. This in turn would help to stimulate industrial development and generate employment. Being defined as raw material exporters undermines technological innovation in the wider economy, not just in agriculture."