Sugar & ethanol: Africa’s shifting trade landscape

Africa's sugarcane sector is at a crossroads as Earth Day 2025 approaches, facing the urgent need to adopt more sustainable and climate-resilient practices. With 35 countries on the continent producing sugarcane, Africa plays a crucial role in meeting global demand for responsibly grown crops. Mike Ogg, the Regional Head for Africa at Bonsucro, recently joined CNBC Africa to shed light on how farmers are leveraging technology and data to mitigate environmental impacts and pave the way for a more sustainable future for the industry. The conference highlighted key challenges facing the industry, with climate change standing out as a pressing concern. Ogg emphasized that while Africa has the potential to thrive in the sugar industry, infrastructure limitations and evolving trade regulations pose significant hurdles. However, he remains optimistic that with strategic interventions, the industry can overcome these obstacles. Sustainability is another focal point in the sector's evolution, with Ogg emphasizing the importance of all stakeholders aspiring to meet sustainability standards to address social and economic factors. Bonsucro, a voluntary sustainability standard, provides a framework for operators to align their practices with sustainability goals and advocates for best practices adoption across the sector. The organization also addresses critical issues such as human rights, labor practices, and biodiversity preservation. Ogg stressed the sector's role in global greenhouse gas emissions, revealing that 2% of the world's emissions stem from sugarcane production. To combat this, Bonsucro equips operators with tools to measure and reduce their carbon footprints in line with international climate goals. Embracing technology is pivotal in this journey towards sustainability, with data playing a central role in monitoring and improving industry practices. Bonsucro's metric-based approach requires members to provide extensive data points, enabling benchmarking and performance evaluation across operations. The utilization of technologies like AI and drones is revolutionizing the sugar value chain, enhancing efficiency and competitiveness. In addressing financing challenges, particularly for small-scale farmers, Ogg underscored the industry's potential to uplift communities when done sustainably. By incorporating a climate lens into funding mechanisms, opportunities for green climate financing could catalyze sustainable production practices, especially among smallholders in Africa. The concerted efforts within the sugarcane sector reflect a collective commitment to navigating climate challenges and fostering a more sustainable industry for the future.