Africa Newsletter 05-22-20

East Africa Update

Rainfall Hits Kenya Fresh Produce Exports As The EU Increase Orders

Growers of fresh produce have seen a demand in their products form the European Union as stocks have begun to run low especially as governments in the UK, Germany, Italy and other European countries start easing the nationwide lockdowns.

Heavy rains have affected the production of crops and this will lead to a low turnout of products destined via Jomo Kenyatta International Airport in Nairobi. The Business Daily reports on how freighters have increased their rates from $1 per kg to $2.8-$3.5 per kg.

More Beans Coming Into Market

Ugandan Nambale beans are coming into the market as demand for the pulses increase locally and in Kenya. Beans are now trading at UGX 3,700 per kg in Kampala and are expected to see lower prices as more growers enter the market at the end of May.

The government is still procuring beans and maize flour for their food aid programme in the urban centres and traders from Kenya have also entered the market for beans which will see the Government of Kenya purchasing beans.

Maize is still trading at UGX 1,000 kg in the Greater Kampala area and soybeans are available at UGX 1,800 per kg.

Coronavirus Disagreements Threaten Kenya-Tanzania Trade

Tensions have been rising at the border crossings of Kenya and Tanzania which now threatens trade between the two East African Community member states. Kenya had closed the borders to Tanzania at the weekend excluding cargo trucks that required their drivers to undergo testing for the coronavirus. This action resulted in authorities on the Tanzania side banning Kenyan trucks at Lunga Lunga/Horohoro and Taveta/Holili crossings.

Kenya currently has over 1,000 confirmed cases of coronavirus and has blocked many trucks coming from neighbouring countries including Tanzania and Somalia due to positive tests. The Uganda-Kenya borders remain open to cargo and so are the border crossings for Tanzania/Malawi and Tanzania/Uganda.

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