Africa Newsletter 06-12-20
East Africa Update
Mexican Maize At Sea But Kenyan Millers See Little Price Relief
After the governments decision to extend the window for importing maize from outside the EAC, Kenyan millers are now seeing little benefit to the imported maize from Mexico compared with the local prices.
The Business Daily reports on how millers are not expected to lower the maize flour price as the non-GMO maize grain arriving from Mexico is expected to land at KES 3,300 per 90 kg in Mombasa and KES 3,600 per 90 kg in Nairobi and how due to the shortage a 90 kg bag of maize in Nairobi is quoted at KES 3,300.
The current stocks of maize are only expected to cover June and July but Ugandan grain will also enter the market as Uganda’s short season crop is expected from this month.
Uganda Government To Increase Import Duty On Agricultural Products To 60%
As Uganda’s Finance minister presented the national budget for 2020-2021, agriculture was highlighted as an area to generate more income for the treasury by confirming that imports of agricultural products will see an increase to 60% and 35% for some other products such as semi processed raw materials.
According to the Monitor, the minister however did offer some support to the agricultural sector by exempting VAT on the supply of equipment and that processed milk will also see an exemption in order to enhance the price competitiveness of milk produced in the country.
Uganda is an importer of protein meal, wheat, vegetable oils, DDGs, seeds, fertilizers, milk products and fruit.
Tanzania Sees Increase In Cash Crops Production
The minister of Finance and Planning Dr Philip Mpango announced that the country has seen an increase in cash crops production from 796,502 metric tons in 2015-16 to 1,144,631 metric tons in 2018-19 seeing an increase of 348,129 in this period. The minister announced these achievements during the reading of the Tanzania national budget.
The Citizen reports on how this increased production saw the export value from $412 million in 2015-16 to $779 million in 2018-19. Tanzania’s key exports such as cotton, cashew nuts and tea have been affected by the coronavirus outbreak as a result of low demand from destination countries in Asia and Europe. Tanzania’s main cash crops include cashew nuts, cotton, tea, tobacco and coffee.
For updates on restarting the global trade please see our report Hot Commodities at panxchange.com/hot-commodities