Africa Newsletter 05-01-20

East Africa Update

Kenya Traders Prepare For Beans Supply

After the National Cereals and Produce Board announced the purchase of up to 8,000 bags of beans, traders are preparing to apply and position themselves for supply contracts. Uganda is expected to be a key origin as a new crop is expected from June but Malawi will also be an alternative source.

Kenya remains a net importer of key commodities including maize, sugar, molasses, and honey. According to Standard Media Kenya, The Kenya National Bureau of Statistics’ Economic Survey, Kenya’s overall import bill continued to rise last year by 2.4%.

Uganda Struggles to Balance Regional Trade And Covid-19 Cases

As the region observes Labour Day as a public holiday, the Ugandan government is still struggling to strike a balance in regional trade, especially with Tanzania and Kenya, continuing as it remains a key part of the economy whilst also managing cases of Covid-19. The most recent cases in Uganda have been of those truck drivers coming from Tanzania and Kenya.

There have been new measures introduced such as only having one person, the driver of the truck, enter Uganda, drivers not being allowed to stop in unauthorized stops in the country, and drivers being limited on their contact with locals within the country. The challenge is set to increase as the lockdown guidelines are expected to be relaxed next and Uganda is expecting a new crop from next month with Kenya set to be a destination for a lot of the Uganda origin crops.

Maize is trading at UGX 1,050 per kg in Kampala, maize flour at UGX 2,500, and nambale beans still at UGX 4,000 per kg.

Tanzania Sees Drastic Increase in Covid-19 Cases

Tanzania has seen a sharp increase in the confirmed cases for Covid-19 and reports are coming out of the capital stating that the actual numbers may be even higher than the stated of 480. Unlike other East African Community states such as Uganda and Rwanda, Tanzania has taken the route of not enforcing strict lockdowns. Traders in the economic hub of Dar es Salaam have stated that the government is extremely reluctant to introduce a nationwide lockdown as it fears the economy.

The Songwe region has seen a lot of rains in the past week but the new crop of sorghum is still expected to come into the market at the end of May or early June. Prices are still expected at circa Tzs 600 per kg.

For more information on how Covid-19 is affecting the global supply chain please see our reports Hot Commodities at panxchange.com/hot-commodities