Africa Newsletter 07-10-19

Africa News

Market Update 07-10-2019

Kenya Market Update

In an attempt to steady markets amid supply concerns, the Kenyan National Cereals and Produce Board has been distributing reserve maize to millers at Ksh 2,300 per 90 Kg bag. As maize stocks in the strategic food reserve dwindle, however, maize flower prices have risen to Ksh 124 Per 2 Kg packet, with buyers and sellers pricing-in the potential of future shortages.

This comes after the Kenyan government announced the opening of a duty-free import period of 12.5 million bags of maize, between the end of July and the end of October. Ten million bags earmarked for importation will be white maize for household consumption while 2.5 million will be yellow maize for processing of animal feeds. The announcement had been delayed by the latest round of the ever-present debate regarding Maize imports, with the government and millers prevailing over the local farmers association, which opposes imports. It is this delay which has caused the supply concerns, and thus the rise in prices.

Uganda Market Update

Maize continues to trade at above UGX 1,100 per kg in Kampala and over UGX 1,200 in Mubende and Bweyale as the crop will start entering the market from the end of July. Maize prices are expected to fall to UGX 800 per kg in the capital but the weather will determine how much harvesting will take place in the coming weeks. Many maize growers have converted to soybeans so we should have a good crop of the oilseeds which will be competing now with Malawi soybeans as Ethiopian imports will likely be priced out of the Uganda and Kenya markets. Sesame seeds and green grams are also coming into the market with a fresh crop.

Exports Fall

Overall export receipts for the month of April dropped, pulled down by sharp declines in the volumes of gold and coffee, Uganda’s top traditional forex earner. Vanilla, sugar and maize exports, according to the Performance of the Economy report, a monthly tracker produced by the Ministry of Finance, recorded growth. During the month of April 2019, the Middle East was the main destination for Uganda’s exports, followed by the East African Community, the report indicates. The Finance Ministry attributed the decline in trade with the EAC to a drop in exports to Rwanda following the closure of the Uganda-Rwanda border at Gatuna and Chanika in February, which affected the movement of cargo trucks. While Rwanda recently reopened the Gatuna border for two weeks, trade did not pick up and the border has since been closed again.

Select Africa Market Values:

Pricing Map: