Agricultural exports to African countries are promising for Ukraine, — UCAB

The Ukrainian Agricultural and Food Association believes that agricultural exports to African countries could strengthen Ukraine’s position and relieve the European market.

This was discussed during the panel discussion “Grain Market and Agro-Political Dialogue: Present and Prospects” at the Grain Storage Forum, the UCAB.

“African countries are a promising direction for Ukrainian agricultural exports, but strengthening Ukraine’s presence in these markets requires increasing competitiveness,” noted Oleg Khomenko, Director General of the Ukrainian Agricultural and Food Association.

According to the current trade structure, 55% of Ukrainian agricultural products are exported to Europe, 20% to the Middle East, and only 12% to African countries.

“This market has significant potential, but here Ukrainian business faces competition from the Russian Federation. Russians are actively entering these markets through state-owned companies, using budget funds to dump prices and conclude long-term contracts, which complicates the strengthening of Ukrainian positions. An additional barrier is financial risks – African counterparties often have problems with solvency and compliance with payment deadlines. In such conditions, business needs guarantees that will minimize the likelihood of non-payment for the delivered goods,” the association noted.

UCAB General Director Oleg Khomenko believes that one of the solutions could be the development of an Export Credit Agency, which could provide guarantees for exports to African countries.

“If the state currently does not have sufficient resources to fully finance the agency, it is worth initiating a dialogue with European partners. The logic is simple: if European farmers are concerned about the influx of Ukrainian agricultural products, the EU can help redirect these volumes to African markets by replenishing the Export Credit Agency fund to insure such supplies. This will allow to unload the European market and at the same time consolidate Ukraine’s positions in Africa,” Oleg Khomenko concluded.

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