Africa Newsletter 06-05-20
East Africa Update
Sugar Imports To Kenya Rise
Sugar imports into Kenya increased by 23% in the first four months of 2020 compared to a similar period in 2019 despite the improvement of local supply and production. According to The Nation, the Sugar Directorate reported on imports of sugar between January and April 2020 being at 184,677 tons compared to 150,302 tons in a similar period in 2019.
The Common Market for Eastern and Southern Africa (COMESA) which comprises of states in Eastern and Southern Africa supplied 22,378 tons to Kenya while the rest of the world supplied 5,853 tons. The ex warehouse price of sugar at the beginning of the year was KES 4,235 per 50 kg bag before increasing to KES 4,295 per 50 kg bag in February and KES 4,417 per 50 kg bag in April.
Total sugar sales in the review period were 193,532 tonnes compared with 180,979 tonnes sold in similar period last year, a rise of 7%.
Uganda Coffee Sales Rise Despite Pandemic
Uganda has experienced positive growth in coffee sales despite the coronavirus pandemic as reported by The East African. The Uganda Coffee Development Authority (UCDA) reported that Uganda exported 359,973 60 kg bags worth $36.93 million in comparison to exports of 305,643 bags in April 2019 valued at $30,048,530 million.
Uganda’s average export price reduced to $1.6 per kg down from $1.65 per kg in February 2020 and $1.63 per kg a year earlier in 2019. Uganda’s annual average coffee earnings are $450 million making coffee one of the country’s key foreign exchange earners.
SGR Standoff As Uganda Rejects Compulsory Naivasha Port Deal
Uganda’s Minister for Works and Transport Katumba Wamala has written to his Kenyan counterpart and stated that the Naivasha Inland Container Depot will not reduce the human movement and contact because drivers would have to collect the incoming cargo from Naivasha and deliver to Uganda and other landlocked destinations. The Ugandan Minister wants the Naivasha ICD to be an option but not compulsory for the time being.
This comes after a directive by Kenya, Uganda, Rwanda and South Sudan was supposed to take effect on 1st June in order to speed up the movement of cargo from Mombasa port and to reduce human contact and movement.
For updates on global commodities please see our reports Hot Commodities at panxchange.com/hot-commodities