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Rice export, opportunities from African market 

 Monday, April 28,2025

AsemconnectVietnam - It is forecasted that Africa will become the world's largest rice import market. However, for many rice exporting enterprises, this is a large but not easy market.

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It is forecasted that Africa will become the world's largest rice import market
Africa is an important rice export market for Vietnam. During 2017 - 2021 period, Vietnam's rice export turnover to Africa has seen positive growth, from 411 million USD in 2017 to 692.6 million USD in 2021.
However, in 2022, Vietnam's rice export turnover to Africa is estimated to reach 620 million USD (equivalent to 16% of Vietnam's total export value to this continent), down 10.5% compared to 2021.
Main reason for this decline is due to increased demand for food reserves in many parts of the world due to global economic and political instability, which has pushed up rice prices, forcing some countries in the African region to cut rice imports.
In addition, Covid-19 pandemic has also caused a significant decrease in Africa's rice imports due to disruptions in the world's rice supply, combined with Africa's internal difficulties in context of rice-exporting countries cutting exports to ensure food security.
However, according to April 2025 grain market report of the United States Department of Agriculture (USDA), demand for rice imports in Southeast Asia, especially from Indonesia, has decreased. On contrary, demand for rice has increased sharply from Africa, especially from sub-Saharan countries. Therefore, in 2025, Africa will surpass Southeast Asia to become the world's largest rice importer.
Cheap white rice products, especially from India, Thailand and Pakistan, have dominated African market in recent times. Meanwhile, Vietnamese rice only ranks 4th in this market. However, there are also major rice importers in Africa that are traditional customers of Vietnam. Of which, Ivory Coast is the second largest rice importer in Africa with 1.8 million tons per year. Many years ago, this country was always in group of countries that bought the most rice from Vietnam.
Large market but not easy
Demand for rice imports from African countries continues to increase and Vietnam has many opportunities to boost rice exports to the region in coming time, especially fragrant rice, Jasmine; medium and low-grade rice will be under pressure from cheap competitive rice from Thailand. However, this market is not the priority choice of many businesses.
Talking to reporters of Cong Thuong Newspaper about this issue, Ms. Nguyen Thi Tra My - Vice President and General Director of PAN Group - said that Vinaseed - a subsidiary of PAN Farm under PAN Group - always puts quality first, therefore, business focuses on the high-end market. “In fact, Africa is a rather difficult market because import price is very low. We also had a plan to export confectionery to Africa but it was not successful,” Ms. Nguyen Thi Tra My shared.
In addition to export sector, enterprise also wants to focus more on the domestic market with the packaged rice segment. Currently, market share of packaged rice in Vietnam accounts for only 5%, while Thailand accounts for 60 - 70%. Therefore, Ms. Tra My believes that this is a great opportunity for Vinaseed. "With the new orientation, we will restructure both the domestic and export markets to ensure the best business efficiency", Ms. Nguyen Thi Tra My informed.
Meanwhile, speaking with a reporter from the Industry and Trade Newspaper, a representative of a rice exporting enterprise in Vinh Long said that Vietnamese rice exported to Africa is mainly 15% long-grain white rice, 25% broken rice, except for two countries that import the most parboiled rice, fragrant rice and 5% broken rice, which are South Africa and Nigeria.
In recent years, importers in Africa have increasingly sought to buy more Vietnamese fragrant rice due to its stable quality and competitive prices. However, for two major markets that consume and import medium and high quality parboiled rice and fragrant rice such as South Africa and Nigeria, amount of rice Vietnam exports to is still very small.
Vietnamese rice is currently exported to Africa mainly through intermediaries. Although market demand is increasing, businesses are reluctant to export to this market due to lack of transparency in information about the rice market and rice exports. In addition, Africa is a remote area, with many potential risks in payment and transportation.
Vietnam exports rice to 54 African countries, of which the largest rice importing markets include Ghana, Ivory Coast, Senegal, Mozambique, Cameroon, Tanzania, Egypt, etc. Last week, rice businesses in the Mekong Delta also confirmed that rice prices are increasing due to high demand in African and Philippine markets while the Winter-Spring crop has ended, so rice supply is limited.
According to General Department of Customs (Ministry of Finance), from the beginning of 2025 to April 15, Vietnam exported 2.85 million tons of rice, up 6.4% over the same period last year. However, due to the average export price of rice to the world decreasing by 20.1%, from 647 USD/tonne in the same period last year to 517 USD/tonne in this period, the rice export turnover only reached 1.47 billion USD, down 14.9% over the same period last year.
In the first quarter of 2025, Ivory Coast was Vietnam's second largest rice export market with 143 million USD, up 138% over the same period last year. Besides Ivory Coast, rice exports to Ghana reached 106 million USD, up 105% over the same period last year.
Experts say that, although rice cultivation area in Africa has been expanded in recent times, rice production here is forecasted to not be able to keep up with growth in rice consumption demand of the people and the population growth in the region. This will be an opportunity for Vietnam to export rice to this market if businesses promote and increase the presence of Vietnamese rice products in Africa.
At the same time, proactively seek measures to improve competitiveness and quality of exported rice, invest in upgrading harvesting technology, and preserve rice after harvest. Businesses also need to focus on training a workforce with foreign language proficiency, in-depth knowledge of foreign trade and experience in rice export business activities with goal of long-term and sustainable penetration into African market.

Source: Vitic/ congthuong.vn
 

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