Africa Newsletter 08-21-19

Africa News

Kenya

Markets

Pulses and Maize prices have stabilized in the last weeks due to the onset of harvesting of the pulses and imports of maize from Tanzania and Uganda respectively. This has also been bolstered by the release of more maize from the Strategic Food Reserve. While they currently stabilized, there could be pressure to break below ksh 3,000 in the next week or two.

The volumes of pulses harvested was not as expected due to the fact that the rains came in late and not at the right quantities.

Weather

The dry spell has set in in most parts of the country and is expected to continue up to mid October when the rains will set in, although some parts are still experiencing the cold weather which is expected to continue into the next one week.

Uganda

The harvest continues with maize coming into the Greater Kampala market at UGX 1,000 per kg while in Mubende it is quoted at UGX 900 per kg. There continues to be a lot of grain with high moisture content due to the late rains that have affected the drying processes in the growing regions. Soybeans remain at UGX 1,700 to UGX 1,750 per kg in Kampala as more will be coming out of the fields for drying. Nambale beans are quoted at UGX 2,100 per kg in Kampala.

Maize is currently trading at UGX 850 per kg in the Kampala area with more grain coming into the capital. There still seems to be high moisture content in the grains as the weather has not been favourable for drying conditions. Soybeans are trading at UGX 1,650 per kg ex Kampala as prices begin to settle as the remaining growing areas go into the last period of harvesting before they start planting for the next season. Beans are available at UGX 2,000 per kg.

Why Tanzania flour will not be going to Kenya

The difference in standards and low capacity will hinder Tanzania’s quest to export maize flour to Kenya, Agriculture PS Hamadi Boga has said. Kenyan flour is fortified, which is a requirement by the Kenya Bureau of Standards (KEBS), while most of the Tanzanian commodity is not, making access to the local market difficult. On capacity, Prof Boga said Tanzania’s largest miller has a capacity of 100 metric tonnes a day compared to Kenya’s total daily capacity of 16,000 tonnes making the plans of importing flour from Tanzania unviable.

Uganda wants trade barriers in EA tackled

Uganda wants a more efficient system of moving cargo to help reduce costs on goods across East Africa. Kampala says that delays in scanning cargo in transit as well as its verification, its overstay at container freight stations (CFS) and corruption account for more than 20 per cent of losses in the goods that Uganda trades in. “More than 82 per cent of Uganda imports pass through Port of Mombasa; that is why we are meeting our Kenyan counterparts to address the logistics inefficiencies in import and export of goods which are estimated to cost $827 million to the Uganda business community and government every year,” said the Minister of Trade, Amelia Kyambadde. Kenya’s High Commissioner to Uganda Kiema Kilonzo blamed officers on the ground for frustrating business people from both countries.