US explores Africa as a potential new market for soy exports

U.S. soybean producers are increasingly looking toward Sub-Saharan Africa as a potential new export destination. According to the Soybean Innovation Lab, the region is experiencing rapid economic and demographic growth, yet remains highly complex, diverse, and risky for business, with demand for soybeans and processed soy products only beginning to take shape.

The analysis focuses on four key countries — Egypt, Ghana, Nigeria, and Tanzania. Egypt remains the most stable and largest importer, with soybean demand growing at 4.5% annually and the U.S. supplying nearly 70% of total imports. The country continues expanding its domestic crushing capacity, largely meeting its own needs for soybean oil and meal, while keeping import tariffs on raw oilseeds low.

Nigeria shows strong demand for animal feed and vegetable oils, but its import potential is constrained by a shortage of foreign currency and strict trade controls. Ghana, despite a growing need for soybean meal, imports very little due to a burdensome tax regime that significantly increases the cost of imported soy products.

Tanzania focuses on domestic production of sunflower oil and other oilseeds but cannot meet national demand. The country relies heavily on imports of palm oil and soybean meal from neighboring states, while trade with the U.S. is hindered by distance and limited logistics capacity.

GMO regulations remain a crucial factor for U.S. exporters. Egypt allows imports of genetically modified crops for feed use, Ghana is fully open to biotech products, Nigeria is gradually easing restrictions, while Tanzania maintains the strictest barriers. This mix of trade policies, logistics challenges, and regulatory environments will ultimately determine whether Africa can become a promising growth market for U.S. soy exports in the coming years.

Tags: Egypt, soybean, USA, Africa, Nigeria, Ghana