Africa Newsletter 08-28-20
East Africa Update
Kenya’s Grain Commodities Exchange Warehouses Upgrade Starts Ahead Of Roll Out
Kenya plans to spend over KES 100 million on upgrading selected warehouses that will be used under the new Warehouse Receipting System (WRS) as the country prepares to launch a national commodities exchange.
The Business Daily reports on how the targeted October launch will help reduce the losses to farmers on crops that usually do not have the required infrastructure to maintain quality during post handling processes and therefore reduces the marketability of their crops especially maize.
The new approved warehouses will differ from the ones currently used by the National Cereals and Produce Board and the East African Grains Council as the the new Warehouse Receipt System Council will only approve those that conform to standards and grading set by the Kenya Bureau of Standards. The Warehouse Receipt Systems Act 2019 was passed in parliament to provide legal and regulatory framework for the development of the agricultural market in the country.
Uganda Exports More Rice To South Sudan Than Other EAC Countries
Uganda has been the leading exporter of rice to South Sudan which saw 31,411 metric tons exported during the period of April and June as this was followed by Tanzania and Somalia as reported by The Monitor.
This is a positive development in the rice market after Uganda has in recent history limited supply to other countries in order to protect its local growers as 2018 was an example of this policy by the Ugandan government. Uganda’s estimated daily milling capacity for rice stands at 7,158 metric tons per day.
During the same period of April to June, Uganda also exported other staples to South Sudan including dry beans that reached an estimated 18,098 metric tons while Kenya exported 11,136 as dry beans have now become the most informally traded commodity at Uganda’s borders.
Tanzania Keen To Protect Local Goods In New Trade Pact With The UK
As the talks between the UK and EAC members over an EAC/UK trade agreement continues, the Tanzanian government is clear that they must protect locally made goods in order to protect jobs, development and create a partnership that will be beneficial to both parties.
According to The East African, in the wake of Brexit, the Tanzanian government is renegotiating its current trade relationship with the UK which saw Tanzania export USD 60 million of goods to the UK compared to USD 170 million the UK exported to the East African nation.
The exports by Tanzania included gold, coffee, cashew nuts and cotton as the key products sold to the UK while other smaller quantities of products to the UK included gemstones, textiles, cut flowers, tea, tobacco, fish, vegetables and palm oil while the UK exported industrial and agricultural machinery, mechanical appliances, vehicles and pharmaceutical products.
For updates on global trade please see our report Hot Commodities at panxchange.com/hot-commodities