Ukraine produces five times more food than it consumes, yet it holds less than 5% of the African food market—a continent where over 25,000 people die of hunger daily. While the opening of the first Ukrainian agro-hub in Ghana is a significant step toward addressing this disparity, a profound shift in trade philosophy is required to achieve tangible results.

Leonid Kozachenko, President of the Ukrainian Agrarian Confederation, shared his insights on the prospects of the African agro-export vector, as reported by Dengi.ua .

"Food today is arguably the most powerful weapon in the world. The weapon we hold possesses incredible power; we simply need to learn how to wield it effectively," Kozachenko emphasized.

Why Africa is a Strategic Market for Ukraine

Africa suffers from the world's most severe food shortages. For comparison, Ukraine currently exports approximately $27 billion worth of agricultural products annually. In contrast, the Netherlands—with 11 times less agricultural land—exports $108 billion. The difference lies entirely in the depth of processing. According to Kozachenko, a systematic expansion into the African market represents both a humanitarian imperative and a massive economic opportunity for Ukrainian business.

Pirates and Bad Debts: Obstacles to Market Entry

The primary barriers to entry remain political instability and the lack of the rule of law in many African nations. Kozachenko noted that previous attempts to enter the market often resulted in significant losses:

  • Ukrainian merchant ships carrying grain were intercepted and looted by pirates.
  • Companies frequently faced non-payment even after successful and safe delivery.
  • Direct investments in local production facilities often led to the total loss of capital.

Meanwhile, competitors employ aggressive tactics; for instance, Russia has established specialized armed formations to protect its food exports by force. Kozachenko argues that Ukraine must pursue a strictly legal path, engaging international institutions—such as the UN’s FAO and global financial organizations—as reliable guarantors of security.

How Ukraine should change its approach to agro-exports

The essential change required is a categorical rejection of exporting cheap raw materials in favor of high-value-added products. Kozachenko highlighted two successful models:

  • Turkey: supplies Africa with finished pasta, flour and cereals rather than raw grain;
  • UAE: Imports African raw materials, processes them at domestic facilities, and exports the finished food products back to Africa.

To transform its agro-export sector, Ukraine needs to attract $85–90 billion in investment for the processing industry over the next decade. This would enable production and export volumes to exceed $120 billion. The ideal logistical model involves processing raw materials at factories within Ukraine, shipping the goods to an African hub, and distributing the finished products across the continent.

Evaluating the Ghana Hub and Future Strategy

While Kozachenko views the new trade hub in Ghana as a positive step, he notes its location is not optimal. West Africa is a complex region plagued by internal conflicts, meaning the hub may primarily serve Ghana’s domestic needs.

A more strategic location would be North Africa. Morocco previously proposed creating a powerful distribution hub on its territory, offering to centrally purchase Ukrainian products and distribute them across the continent using its robust financial resources and regional influence.

The key, according to Kozachenko, is to maintain momentum, systematically expand geography, and refine the mechanisms of Ukraine’s presence in this critical market.