Analyses & Studies
Article | Economic Letter: East Africa and the Indian Ocean - October 2025
The French Treasury (Direction générale du Trésor), under the French Ministry of Economy and Finance, publishes Economic Letters through its regional services to provide in-depth analysis of key economic sectors and trade dynamics in partner countries.
This edition examines the structure, performance and challenges of major agricultural export sectors across several countries in East Africa and the Indian Ocean, including Madagascar, Comoros, Mauritius and Kenya. It highlights the strategic importance of cash crops such as vanilla, cloves, cocoa, essential oils, tea, sugar and horticultural products, which remain critical sources of foreign exchange, rural employment and socio-economic stability.
In Madagascar and the Comoros, export revenues rely heavily on high-value crops such as vanilla, cloves and ylang-ylang, though these sectors are highly exposed to price volatility, climatic shocks and increasing regulatory requirements in key markets such as the European Union. In Kenya, tea, coffee and horticulture represent major export pillars, supported by relatively structured value chains but facing sustainability, compliance and competitiveness pressures. In Mauritius, the historical sugar industry, though reduced in economic weight, continues to play a key social and environmental role while adapting to global price fluctuations and climate risks.
Across the region, these export-oriented agricultural sectors face common structural challenges: compliance with evolving international standards, limited local value addition, market concentration, climate vulnerability and infrastructure constraints. Authorities and private stakeholders are increasingly focusing on diversification, improved traceability, agro-processing and industrialization strategies to strengthen resilience and capture greater value.
Overall, the Letter underscores that while agricultural export sectors remain fundamental economic pillars, their long-term sustainability will depend on modernization, regulatory adaptation, climate resilience and stronger integration into higher value-added global supply chains.
