The cut flower and ornamental plant sector in East Africa is at a turning point, according to a new RaboResearch report by Lambert van Horen and colleagues. The sector has developed strongly since the early 2000s and offers broad opportunities for entrepreneurs and international cooperation, particularly with the Netherlands, which holds a dominant position in the global floriculture value chain.
Strong growth, but also risks
In countries such as Kenya, thousands of people are employed directly and indirectly in the flower industry. Exports to traditional European markets continue to grow, while shipments to destinations outside the European Union are increasing even faster. According to Rabobank's analysis, this expansion into non-European markets reduces dependence on Europe but also brings new logistical challenges.
Land and political risk remain significant barriers. Many growers and exporters in East Africa operate in regions with geopolitical uncertainty or volatile economic conditions. Banks and investors factor these risks into their assessments, which can slow financing and growth if risks are not managed effectively.
Digital platforms and market access
One of the main opportunities for East African growers lies in access to new markets through digital trading platforms. These platforms allow producers to present their products directly to a global base of buyers, reducing dependence on traditional importers, including European intermediaries, and improving transaction efficiency.
Rabobank also highlights the importance of more diversified product portfolios. Beyond traditional roses, there are indications that chrysanthemums, eustoma and other varieties have potential in international trade, provided growers have access to suitable varieties and modern cultivation techniques.
Logistical opportunities and challenges
Transport remains a critical factor. While most East African flowers are still shipped by air freight, trials with refrigerated sea freight have shown promising results. Sea transport could lower shipping costs and provide greater stability, but it requires investment in cold chain systems and logistical infrastructure.
Sustainability
Customers, particularly in Europe, are placing increasing emphasis on sustainability. Certification and compliance with environmental and social standards have become essential to access and retain key markets. Rabobank notes that new businesses should integrate these standards from the outset to secure access to EU markets.
Collaboration is key
The report concludes that growth in East African floriculture is achievable if risks are properly managed, digital market access is leveraged, logistical solutions are implemented and sustainability is placed at the core of business strategies. For Dutch companies, opportunities exist in knowledge transfer, investment and value chain cooperation, strengthening both local development and international objectives.
