Africa Newsletter 04-02-21

Africa News

Africa Newsletter 04-02-21

East Africa Update


Traders Fail Tough Test For Uganda Maize Imports

Traders are still facing challenges with importing maize into Kenya after the Agriculture Ministry confirmed that most have failed to conform with the new guidelines that include aflatoxin tests allowing maximum 10 parts per billion, registration of all traders and issuing details of the warehouse of where the grains were held.

According to Business Daily, this has meant that authorities in Kenya had recorded no imports and this is after a period in January that saw 523,000 bags imports compared to just 101,000 bags in the same period in January 2020.

Last month Kenya had introduced a ban on maize imports from Uganda and Tanzania due to high levels of aflatoxins however this ban was shortly removed and instead stricter restrictions were brought in as a way to reduce intense with the EAC members.

Kenya Market Update

As importers are still facing challenges on importing Ugandan and Tanzanian maize the price quoted in Nairobi is now above KES 2,700 per 90 bag as millers are being forced to offer higher flour prices. Maize prices are expected to remain high for the next few weeks but NCPB are making attempts to offer at competitive rates after concerns were raised. Exporters from Uganda are now working with authorities to see that their maize meets the new standard requirements. Soybeans remain at KES 60 per kg and processors are now looking at Malawi and Zambia’s new crop this month.

Uganda Market Update

The Ugandan maize market is seeing large volumes still available for delivery and millers and animal feed producers continue to purchase both graded and ungraded maize between UGX 600 per kg and UGX 650 per kg. The price is expected to start increasing this month and again next month with the market also looking at a good crop for June/July. Soybeans remains at UGX 2,300 per kg but the price is now steadying as the domestic demand slows down with the pricing not being viable for a number of processors. Most soya traders have tried to export their stocks but pricing remains a challenge especially with the new crop coming in from Malawi this month.

Uganda’s Coffee Exports Increase Despite Covid-19 Market Disruptions

Uganda continues to see record growth in value and volume in their coffee after the Uganda Coffee Development Authority reported that between March 2020 and February 2021 the country exported 5.56 million bags worth $511.21 million, compared to 4.74 million bags worth $459.47 million the previous year.

According to The East African, Uganda exported 563,763 bags (60 kg) of coffee worth $50.55 million in February 2021 and the Ministry of Agriculture attributed the growth of exports to increased production and better transport connections from farms to cities for export. Uganda targets the exportation of 20 million bags of coffee by 2022, which would compete with large coffee exporters including Ethiopia, Vietnam and Brazil.

Sweet News For Sugarcane Farmers With Earnings Set To Rise

Sugarcane growers in Kenya have seen the increase of price of their raw material from KES 3,700 to KES 4,040 per ton after the Sugar Cane Pricing Committee decided to increase the price that had been steady since 2018.

According to The Nation, millers will now have to pay the new price or face a KES 500,000 fine or one year of imprisonment from 1st April 2021 as the new pricing is expected to encourage growers who were requesting for better prices as there was an increased domestic production and a cut down on imports. Kenya had 210,000 tons of imports that were capped from COMESA from an initial 300,000 tons.

The total sugar cane deliveries to millers in 2020 were 6,799,923 tons compared to 4,605,102 tons in 2019, a 48% increase, led to the Ministry of Agriculture supporting the price increase to growers.

Green Mung Bean Price Surges As Demand Grows Exponentially

Green mung beans have seen an exponential increase at the Ethiopian Commodity Exchange (ECX) at 600 Birr per quintal with most of the exports are destined for China, the world’s largest buyer of green mung beans from Ethiopia.

The Reporter looks at how there is an increased demand for Ethiopian origin mung beans in the global markets and in the last eight months the exchange facilitated trades of 27,000 tons worth one billion Birr.

International prices have seen an increase from $1,250 to $1,750 per ton in just two months due to Myanmar, one of the leading producers, having a smaller output this year. Some of the other large producers are Uzbekistan and Tanzania and the global output stands at 5.3 million tons.

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