Africa Newsletter 01-10-20
East Africa Update
Import Costs Up 20pc More On China Container Shortage
The cost of importing goods into Kenya via the sea will see a 20% rise in freight costs as the shortage of shipping containers in China has disrupted global trade as the freight rates for a 40ft container have gone up to almost $6,000 compared to $4,000 in March according to The Business Daily.
The shortage derives from a number of factors including countries in Asia restarting their economies faster than most developed regions, coronavirus restrictions and shortages in personnel at European and North American ports.
Maize in the Nairobi area is still being quoted at KES 2,800 per 90kg bag as importers await the decision by the authorities to finally allow the importation of maize from Uganda and Tanzania. It is expected that the decision is imminent and registration of importers has been taking place with the food authority. Soybeans remain at KES 60 per kg with imports from Malawi starting to enter the country but demand will continue well into June and July with the Uganda crop expected to meet requirement by the feed processors.
Grade 2 maize in Kampala is still trading at UGX 700 per kg with the price steady due to the large stocks being held with the anticipation of the Kenyan market opening up. Traders have been advised to prepare their documentation including a certificate of conformity once Kenyan authorities begin to allow imports. The Uganda National Bureau of Standards is expected to issue the CoC’s while confirmation for private inspection agencies it yet to be confirmed. Soybeans are trading at circa UGX 2,300 per kg and maize bran is trading at UGX 450 per kg.
43% of Kenya’s Sugar Imports To Be Sourced From Uganda
Kenya’s sugar imports will see Uganda’s share account for 43% from the total coming from within the COMESA trading area after the Kenya and Uganda authorities reached an agreement following a long trade dispute.
According to The Monitor, the two countries had agreed three years ago that Uganda would export its surplus sugar into Kenya but only last year after a slow implementation, Kenya only allowed 20,000 metric tons instead of 90,000 metric tons that were approved for import.
Kenya was importing 350,000 metric tons of sugar from COMESA but they have now capped these duty free imports to 210,000 metric tons.
Coffee Exports Earned Tanzania $135 million In 2020/21
Tanzania is reported to have earned $135.1 million from coffee exports in 2020-2021 with 68,880 metric tons exported to key markets including Japan, Italy, The United States, Germany, Greece and other emerging markets that include South Africa, South Korea, China and in the Middle East according to The Citizen.
Of the coffee sold at auction, 30,375 metric tons were Arabica while 38,505 metric tons were robusta but the Tanzania Coffee Board (TCB) estimates that the 2021-2022 season will offer a larger crop with the projected volume reaching 65,000 metric tons.
Avocado Exports Earn Kenya Sh4.6bn In Three Months
Kenya’s avocado exports increased by 93% to KES 4.26 billion in the first quarter of 2021 compared to the same period last year according to data from the Horticulture Directorate as demand in Kenya’s main markets Europe and The Middle East increased.
Kenya has been ranked 8th in global avocado production and exported 26,481 metric tons between January and March this year compared to 15,101 metric tons with the fuerte and hass type being the most popular as reported by The Business Daily.
Kenya’s avocado exports increased by 15% to 68,000 metric tons 12 months to October 2020 with the total receipts reaching KES 14 billion.
Lack Of Data On Cocoa Production Hurting Ugandan Farmers – Experts
According to government figures Uganda produces 31,000 metric tons of cocoa beans from approximately 20,000 farmers but the Uganda-South Sudan national coordinator at the East African Business Council (EABC) argues that this statistics are out-dated as reported in The Independent.
The EABC states that cocoa production can increase if there was the introduction of a warehouse receipt system where farmers would be able to take their produce and receive standardized quality checks and payment for their products. In western Uganda growing region dried cocoa beans are quoted at UGX 8,000 per kg and stands behind coffee, tea and fish as Uganda’s fourth biggest commodity export.