(Commonwealth)_ In an era where environmental sustainability increasingly influences global trade, sub-Saharan African (SSA) countries are facing a transformative moment. The European Union’s Deforestation Regulation (EUDR), which came into force in June 2023, introduces stringent new standards aimed at curbing global deforestation by controlling the trade of key commodities linked to forest degradation. This regulation holds major implications for SSA countries, many of which rely heavily on exports of the targeted products.
The EUDR is part of the EU’s broader environmental agenda and applies to seven commodities: palm oil, cattle, soy, coffee, cocoa, timber, and rubber. These products are economically significant for many SSA countries. Under the regulation, any product imported into or exported from the EU must be proven to be free from deforestation and fully compliant with the environmental and legal frameworks of its country of origin. This includes demonstrating sustainable forest management and biodiversity conservation.
For SSA countries, this regulation presents both risks and opportunities. Economically, the impact could be substantial. If countries in the region fail to meet the EUDR’s requirements, they risk losing a combined total of up to $11 billion annually in export revenue. Cocoa, coffee, and rubber are especially vulnerable, as the EU is a primary market for these goods. For instance, over 59% of Africa’s cocoa and more than 41% of its coffee are exported to the EU, making compliance critical to maintaining access to this key trading bloc.
The challenge lies in achieving compliance. A large portion of agricultural output in SSA is generated by smallholder farmers, many of whom operate with minimal resources in remote areas. These farmers often lack the technology, infrastructure, and financial support needed to align with the EUDR’s traceability and sustainability requirements. Implementing robust tracking systems, maintaining compliance with national and EU regulations, and adopting environmentally sustainable practices pose significant hurdles.
While countries like Ghana and Ivory Coast have made early progress by initiating traceability systems in the cocoa sector, enforcement remains inconsistent. Expanding and strengthening these systems is vital if these countries hope to fully align with the new EU standards and secure their market position. Despite the challenges, the EUDR also presents a valuable opportunity for SSA to embrace sustainable development and improve environmental governance. Compliance with the regulation can lead to long-term benefits, including enhanced biodiversity conservation, improved forest management, and greater resilience to climate change. Furthermore, countries that successfully meet EUDR standards may gain a competitive advantage in the EU market and become more attractive to investors interested in sustainability and ethical trade.
SSA governments must act decisively to turn these regulatory changes into catalysts for growth. Such action involves prioritizing investment in infrastructure and capacity building. Providing financial and technical support to smallholder farmers, enhancing regulatory institutions, and developing comprehensive monitoring and enforcement mechanisms are key steps. Moreover, collaboration with the international community, particularly with EU institutions, will be essential. Support from these actors can help SSA countries access the tools and resources necessary to meet compliance requirements and leverage the regulation for economic development.
The upcoming Commonwealth Trade Ministers Meeting (CTMM) in June 2025 will highlight the Commonwealth Secretariat’s analysis of the EUDR’s implications for SSA. This platform will allow trade ministers to explore coordinated strategies and advocate for support mechanisms that address the regulation’s challenges while maximizing its opportunities. The EUDR represents a significant milestone in the global movement to halt deforestation. However, for SSA countries, its success will hinge on the ability to adapt and align with the regulation’s strict standards. By embracing sustainable practices and reinforcing policy frameworks, the region can not only mitigate the economic risks but also open new avenues for sustainable growth and long-term economic resilience.
