Africa Newsletter 01-10-20
East Africa Update
Fear of looming maize shortage pushes price up in Kenya
Managers of the Strategic Food Reserve (SFR) stated that they might not realise the target of buying four million bags of maize this season after farmers opted to sell the produce to millers who are bidding as high as Sh3,400 per 90 kg bag.
The anticipated shortage of maize occasioned by a drop in production by 11 million bags last season has seen millers flock to markets in the North Rift region, the country’s food basket, in panic buying to stockpile the staple.
Kenya Price Updates
Maize is currently trading at KES 3,300 per 90 kg bag in Nairobi and soybeans are still trading between KES 50-52 per kg from December 2019.
Uganda Market Update
The long Ugandan season has started to see favourable weather for drying conditions as maize is trading at UGX 1,050 per kg in Kampala while trading at UGX 950 per kg in the Bweyale and Masindi area.
Grain prices are expected to fall towards the end of January as more of the new crop enters the market. Soybeans are trading at UGX 1,650 per kg ex warehouse Kampala and sesame seeds are still being priced at UGX 4,000 per kg delivered Kampala.
Rain and higher food prices usher new year in Tanzania
Tanzanians ushered in 2020 having to dig deeper in their pockets for basic foodstuffs. Traders are blaming the surge in prices on heavy rain that has been pounding several regions of the country.
Wholesale prices for food items have gone up with maize prices rising from Tsh100,000 ($43.35) per 100kg bag to Tsh110,000 ($47.68); Rice from Tsh190,000 ($82.36) to Tsh220,000 ($95.37) per 100kg; and beans from Tsh230,000 ($99.70) to Tsh280,000 ($121.38) per 100kg.
UN warns of another poor harvest in Zimbabwe this year
The United Nations warned that Zimbabwe faced another poor harvest in 2020 because of patchy rains, compounding problems for millions of people already grappling with a drought and the worst economic crisis in a decade.
Output for the staple maize fell 50 per cent to 900,000 tonnes this year, according to official data. The government has said it plans to import 800,000 tonnes to make up for the deficit.