Africa Newsletter 11-13-20
East Africa Update
The EAC Partner States Get Five Years To Join Kenya-UK Trade Deal
As Brexit is slated for the end of this year, EAC members will have up to five years to join the new UK-Kenya Trade Agreement that is due to be signed. The agreement will give Kenya access to the UK market with products such as tea, coffee, vegetables and flowers while the UK will target the Kenya market for vehicles and pharmaceuticals that could be worth over $1 billion as reported in The Kenyan Wall Street publication.
Unlike the European Union Economic Partnership Agreement (EPA), this agreement will also include discussions on service trade, new technology, research and innovation by Kenya and other EAC members. The EAC bloc including Uganda, Tanzania, Rwanda, South Sudan is yet to have formal talks with the UK regarding post-Brexit trade.
Kenya Market Update
Demand for grain products remains low as maize continues to trade circa KES 2,500 per 90kg bag in the Nairobi area as more of the new crop from the North Rift enters the market at competitive rates. Ugandan maize remains an option but challenges in pricing and high levels of aflatoxin detected keeps the North Rift grain better placed for the local millers.
Demand for soybeans remains steady as the oilseed in Nairobi continues to trade below KES 50 per kg with the Ethiopian crop, which is favoured compared to the Uganda origin, enters the market. Sesame seeds are trading at USD 1,500 per metric ton in Mombasa with key destinations being the Middle East, Greece, Cyprus and China.
Uganda Market Update
Uganda is still experiencing rains in the maize growing regions including Mubende in Central Uganda where maize is still trading circa UGX 800 per kg with an early crop expected to start in December.
Soybeans remain at the same level of UGX 1,550 per kg in the Greater Kampala area but still expected to increase over the next month as Kenyan traders continue to collect the in-demand oilseed. Sesame seeds are seeing a price circa UGX 2,800 per kg in Kampala as its harvest continues in the Northern regions of the country. Maize brain is trading at UGX 480 per kg in Kampala.
Uganda Government Bans Poultry Imports After Outbreak Of Bird Flu
As a result of the bird flu outbreak, the government of Uganda has introduced a ban on poultry and poultry products from the Netherlands into the country seeking measures to control any potential spread.
According to The Monitor, The Netherlands reported an outbreak of the Highly Pathogenic Avian Influenza (HPAI) H2N8 in their domestic and wild birds on 30th October and this had sent shocks through the industry as The Netherlands is one of the leading origins for poultry and poultry products.
The Netherlands is one of the leading sources for day-old chicks and feeds mixes for Uganda as the disease is reported to spread easily among other animals and humans who consume infected poultry.
Kenya Forecasts High Vegetable Orders In Europe Despite COVID-19 Lockdowns
Kenya is expected to see an increase in orders from Europe for fruit and vegetables despite a series of lockdowns taking place in a numbers of countries as they enter a second wave of the coronavirus pandemic.
According to The Business Daily, The Horticulture Directorate has seen the demand increase as Europe enters winter and this increase in demand started in September and is expected to last until February 2021. Europe is one of the key markets for Kenyan produce and it is estimated that up to 60% of the country’s horticulture exports are destined for European countries.
Horticultural exporters suffered in the first lockdown as billions of shillings in produce went to waste as the pandemic had a major affect on buyers in Europe including auctioning in Amsterdam for the flower market. Kenya received earnings of KES 101 billion in the first eight months of the year compared to the same period in 2019 at KES 97 billion.