Reimagining the future of climate action in Africa: Digitalization of coffee sector as use test case

Recent headlines are dominated by COP29, Climate Week NYC 2024, and the full spectrum of climate events. All these discussions center on the urgency of the actions needed to meet the moment in which humanity and the planet find ourselves. Across industry, tech, and policy arenas, stakeholders are united in our commitment to advance climate action. It is the HOW that remains under discussion for us. While ambitious net zero and sustainability commitments abound, ensuring that all players in value chains, particularly in Africa, are equipped with the tools and financing to meet these targets is essential.

When we talk to African exporters and entrepreneurs, smallholders and economists, it is clear that the coffee sector offers the ideal use test case to develop a digitally-enabled, sustainable solution that advances climate and economic goals in tandem for the region.

For Africa and particularly for coffee-exporting countries, sustainability is an urgent commercial imperative driven by regulations in large export markets like the EU. According to World Bank’s analysis, 13-17% of exports in Ethiopia and Uganda alone are exposed to a single regulation – the EU Deforestation Regulation (EUDR). Underlying these numbers are millions of smallholders, traders, processors, packagers, logistics providers and households whose jobs and incomes rely on coffee exports. We need to step up our support as they strive to navigate a world beset by climatic and economic shocks.

EUDR essentially requires coffee exporters supplying to the EU market to certify that the coffee they sell is not grown on deforested land, with 2020 as the baseline (i.e. any coffee grown on land deforested after 2020 would not be in compliance with EUDR). Complying with the EUDR requires coordinated, cohesive action across policy, tech and finance arenas as digital traceability systems offer the key to tracking coffee from farm-to-table. In addition, official forestry maps would need to be overlaid with the farm data to triangulate that no deforestation has taken place.

Given the complexity of compliance, the question is, what can be done to mitigate against a potential cratering of coffee exports and related jobs in Africa?

One, build granular GIS-enabled datasets of forest cover baselines in 2020 and collect farm-level data on current forest cover to confirm status of deforestation (or lack thereof). The cost of this may be a disincentive for smallholders as larger plantations are likely to be able to afford it. A cost-effective digital solution, financed jointly by public and private resources, would be needed to scale this central aspect of compliance.

Second, target investments towards digitalization of the coffee value chain particularly, enhancing and scaling up farm-to-table traceability systems to track coffee from deforested land to its entry into the EU. In addition to identifying appropriate digital solutions, financing the acquisition of solutions and training of value chain stakeholders to use these is critical.

Third, enhance enactment and implementation of country-level regulations on deforestation to avoid ‘high-risk’ categorization which may lead to immediate suspension from exporting coffee to the EU market.

Fourth, start now! Though the application of the law has been delayed till December 30, 2025, there is no time to lose as the solutions would need to be tested and scaled up across the value chains.

Key industry stakeholders are already building solutions to address specific aspects of the challenge. Rainforest Alliance for example is expanding its certification process to include data needed for compliance with EUDR (though this compliance can only be confirmed in January 2026). In parallel, FAO has built digital mapping solutions like Whisp to provide insight into the level of deforestation in the coffee-growing regions. The World Bank is conducting market studies in Ethiopia and Uganda to understand the scope of investments required to digitalize coffee value chains, including to comply with sustainability regulations.

However, there remains a need for  a cohesive approach for coffee exporters in Africa. This will require robust convening power and a platform where stakeholders and solutions’ providers can congregate and aggregate their efforts – for the coffee sector and all EUDR commodities exported by Africa. Time is of the essence!