Africa Newsletter 08-14-20

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Africa Newsletter 08-14-20

East Africa Update


Kenyan Millers Fail To Import Full Quota Maize During Duty Window

Kenyan millers failed to take advantage of the lower import duty that was issued by the government in order to manage the maize shortages in the country and to allow maize flour prices to remain stable for the consumer.

According to the Business Daily, the usual 50% import duty was removed and replaced with 14% for white maize and 10% for yellow maize until the end of July 2020 but the quota issued was for 4 million bags (90 kg) but the deliveries rounded up to 1.2 million bags.

Some millers stated that the reason for the lower imported volumes was due to the case brought to court by activist Okiya Omtatah who stated that there were errors in the government publication of the relaxed duty where aflatoxin levels were originally stated to not exceed 10 parts per billion (ppb) and the EAC standard clearly states that the levels are at 10 ppb. The error was rectified by the government but by then millers were not in a position to take a risk on importing more grain without clarity.

Kenya Rice Market

Kenya is a producer of 200,000 metric tons of rice per year but demands exceed as estimates are at 600,000 metric tons per year. Local basmati is currently retailing at KES 130 per kg or USD 1.3 per kg while imported rice is retailing at circa KES 80-100 per kg or USD 0.8-1.0 per kg.

Indian long-grain white rice of grade 2 with a maximum moisture content of 14% is being quoted at USD 410 per metric ton C&F Mombasa.

Uganda Market Update

Maize is still trading just above the UGX 750 per kg level in Greater Kampala as most of the grain in the market is at a reasonable moisture level. More stocks in the capital are being held in anticipation that schools will be given a presidential directive to open next month for what would be the final academic term of the year after the second and most of the first were stopped due to the pandemic.

Soybeans are still trading at UGX 1,250 per kg in the Greater Kampala area while white sorghum is at UGX 1,100 per kg. Nambale Beans, which will also start seeing an increase in demand as the economy opens up further, is quoted at UGX 3,300 per kg in Kampala.

Sudan’s Peanut Export Ban Surprises Traders

Sudan’s Trade Ministry’s sudden ban on the export of raw peanuts has taken the trading community by surprise after the government stated that it wanted more nuts grown in the country to be processed which allows added value to remain in the country and create more jobs.

The Daily Nation reports on how even the largest exporters in Sudan were shocked by the decision being that Sudan is the 5th largest peanut producer accounting for 14% of the world’s production and being the country’s 5th largest foreign exchange earner behind gold, sesame seeds, oil, and livestock.

This ban is taking place at such a bad time for traders after the country was in international isolation and under a number of international sanctions. The main destinations for the peanuts are China and Indonesia.

For updates on the global food trade please see our report Hot Commodities at

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