Africa Newsletter 07-03-20
East Africa Update
Kenyan Millers Request For Duty On Maize To Be Removed
As the government recently cleared the vessels containing the imported Mexican maize, millers have now come out to request that 14 percent of the import duty be removed in order to make the maize grain more affordable.
The Business Daily reports on how the price with the duty landed at Mombasa is KES 3,300 per 90 kg bag which is similar to the quoted rates in Nairobi. With the removal of the 14 percent duty, the maize would land including transport at around KES 3,100 per 90 kg in Nairobi.
The grain is still docked at Mombasa Port awaiting the outcome from the millers as they agreed with the importer that in the event prices do not match the market then the grain can be sold to any other party.
Kampala Market Outlook
More maize has entered the market as prices continue to reduce to circa UGX 830-850 per kg ex warehouse Kampala. The schools closure has had a negative effect on the supply of maize flour as this is usually a large offer-taker for the market.
Soybeans are still trading at UGX 1,700 per kg while Nambale beans are trading between UGX 3,300 and UGX 3,500 per kg, maize bran trading at UGX 650 per kg and maize flour at UGX 2,100 per kg in Kampala
Concerns Over Cargo At Dar es Salaam, Mombasa Ports
According to The East African, Rwandan importers are pushing authorities for talks regarding the delay in releasing cargo from both the ports of Dar es Salaam and Mombasa. Over 2,000 containers that arrived between December and May are still stuck at the ports and also the Naivasha ICD due to delays.
Importers were awarded extensions to the demurrage but there has since been no amicable solution. The majority of the cargo that is still awaiting clearance arrived at the ports between February and May when the coronavirus pandemic was at its peak and as a result there were personnel shortages.
For updates on restarting the global trade please see our report Hot Commodities at panxchange.com/hot-commodities