In October last year, horticulture stakeholders agreed on restricting avocado exports to air shipments due to low volume of the fruit for exports in the country. As a result, there has been a widespread speculation about whether Kenya imposed a ban on avocado exports. The true position is, over the past 10 years, avocado exports have been restricted to air shipments between the months of November and February, due to insufficient volumes to fill sea containers. During this restricted period, exceptions may be granted to specific orchards upon request, provided that they undergo a 100 per cent inspection conducted by relevant government agencies. This decision was informed by the realisation that certain traders exploited the high demand for avocados. These traders shipped immature fruits, resulting in complaints about the produce not ripening properly at the end market, a development that could damage reputation of Kenya’s fruits. This restriction thus was enforced to safeguard the country’s markets and reputation as a source of quality avocados. Following media reports that Kenya had banned avocado exports, buyers went into panic. Export markets operate on long-term relationships; buyers place orders over time relying on supplier consistency. Any disruption in this chain can cause significant disruptions in the export market thus loss of revenue for the industry and the country. Recently, various organisations took journalists through training on some of the technical aspects affecting trade in fresh produce industry. Such trainings are important to note what substances can and cannot be used for particular markets...

The recently inked Economic Partnership Agreement (EPA) granting Kenya duty-free access for over 80 percent of exports into the European Union represents a milestone for the country. However, the unilateral nature of the pact and resulting tensions with regional partners underline the delicate diplomacy required to balance national and collective interests. As the largest East African economy, Kenya’s bigger challenge is converting preferential European access into an engine of growth for communities across the region. Given recent history, scepticism from fellow East African Community (EAC) members over Kenya forfeiting regional solidarity is understandable. The original EU-EAC EPA signed in 2014 was held up over reluctance by Tanzania and Uganda to open their markets, resulting in the current Kenya-specific deal. With other regional commitments like the AfCFTA also in play, this bilateral tactic reinforces impressions that the EAC lacks cohesion in engaging with external parties. There is concurrently a sense that Kenya leveraged its economic muscle to secure a sweetheart arrangement without considering regional impacts, especially around trade diversion. Kenya could, however, employ savvy diplomacy and commercial policies to change the narrative. Tanzania's and Uganda’s wariness stems from fears of losing tax revenues and being swamped by EU goods re-routed through Kenya. But with a 15-year transition period, gradual impact on regional tariffs and exemptions for sensitive sectors, these impacts can be jointly evaluated and managed. Open communication and data exchange with EAC authorities would build confidence in Kenya’s commitment to mitigate harm. More broadly, Kenya can spearhead collective gains by...

Cabinet Secretary for Investment, Trade and Industry Rebecca Miano spoke to Luke Anami on benefit of recently signed Kenya-EU Economic Partnership Agreement. ******* Critics of the Economic Partnership Agreement (EPA) say Kenya should brace itself for cheap imports from Europe, such as powdered milk, which was not liberalised… Kenya should instead brace itself for increased investments targeting the 27 countries; the €14 million ($15.5 million) EU market where, given permanence of the pact, investors can be assured of long-term revenue and start diversifying to increase capacity for their firms. We also expect more investment from the EU targeting sale of goods into Comesa, the East African Community and the African Continental Free Trade Area is a free trade area encompassing most of Africa — established in 2018 by the African Continental Free Trade Agreement (AfCFTA). The dairy sector largely remains a protected industry under the terms of the Epa. Several products derived from milk remain closed for further liberalisation. These include whey powder, powdered milk, yogurt, cheeses, butter and dairy spreads. Kenyans should focus on building competence to turn these into world-class industries with capacity to export. Will the rest of the EAC sign the same EPA as Kenya's? Yes, they will accede to the current document as individuals or as groups. The document actually anticipates that this will happen and is designed to ease such entry. What is the impact of the EPA in terms of intra-EAC trade? The EPA that was negotiated in its most substantial parts by...

Players in the shipping and tourism industries are optimistic that the economy will recover this year and want the government to ensure stability in taxes and develop infrastructure to support growth. Kenya Ships Agents Association (KSAA) wants the government to raise productivity levels at the ports and invest in infrastructure to support anticipated growth in the volume of business this year. "We expect to see the port productivity level raised to ensure that no ship waits for a berth. We want the productivity of each berth, each gang and each shift raised at the ports," said KSAA national chairman Sylvester Kututa. Kututa said industry players expect the government to facilitate the private sector in creating jobs instead of causing non-tariff barriers in their operations. He told the government and its port agencies to focus more on customers and not over-regulate the industry, adding that there was a need to fully implement the clearing of cargo at the port and border posts before the arrival of the ships to enhance efficiency at the ports. He called on the government to end waiting time for trucks at weighbridges and the borders to improve turnaround time and reduce the cost of doing business. "The weighbridges and border points should not be bottlenecks. Documentation should be done early at the ports and border points along the Northern Corridor to ensure ease of doing business," he said, adding that KSAA fully supports speedy development of the Dongo Kundu Special Economic Zone (SEZ) and the construction...

In the dynamic world of trade, where aspirations of growth and prosperity are painted on a vibrant canvas, there lurks an ominous spectre - Gender-Based Violence (GBV). This silent adversary creeps into the fabric of trade, gnawing away at the potential of women entrepreneurs and obstructing the path to inclusivity. Recent dialogues, spearheaded by TradeMark Africa, following the culmination of 16 Days of Activism against GBV, echoed a resounding call to action. Within the bustling corridors of trade, GBV emerges not merely as an obstacle but as an insurmountable impediment, inflicting profound physical, emotional, and financial wounds on women. Survivors grapple not just with the trauma of violence but also with societal stigma, limited access to essential services, and a dire absence of safe havens. The promise of empowerment through trade transmutes into a perilous odyssey veiled in fear and uncertainty for these individuals. It’s imperative to acknowledge that women entrepreneurs across East Africa serve as the backbone of trade, constituting up to 70 per cent of informal cross-border traders. However, they grapple with disproportionate challenges - from sexual harassment to physical violence impacting their pursuit of economic opportunities. This issue transcends regional borders, resonating across Africa and reverberating globally. The World Bank reports that women’s involvement in trade remains hindered, with one in three women facing violence, often intersecting with their trade activities. These statistics underscore that GBV not only hampers progress but inflicts profound wounds, rendering trade a perilous journey for survivors. This necessitates a societal shift, reshaping...

Ethiopia has taken the first legal steps on a path that could one day enable the landlocked country to gain access to the sea, its government says. It has signed what is known as a memorandum of understanding (MoU) with the self-declared republic of Somaliland to use one of its ports. Ethiopia's Prime Minister Abiy Ahmed has previously described sea access as an existential issue for his country. His statement in October prompted tensions across the Horn of Africa. There were some fears, quickly dampened by the authorities, that this implied trying to take land from another of Ethiopia's neighbours, Eritrea. The details of Monday's agreement with Somaliland have not been made public but a statement from Mr Abiy's office said it would "pave the way to realise the aspiration of Ethiopia to secure access to the sea". Talks leading up to the MoU have focused on the Somaliland port of Berbera. Mr Abiy's national security adviser, Redwan Hussien, also said on X that the arrangement could also enable Ethiopia to access a "leased military base" on the sea. An MoU is not legally binding, though it is seen as a statement of intent and can lead to a treaty imposing obligations on those parties who have signed. Nevertheless, the development is being portrayed by Addis Ababa as a major diplomatic victory. The prime minister, who signed the MoU with Somaliland's President Muse Bihi Abdi in the Ethiopian capital, wrote on X that "all that can be said is thank God". Speaking...

For decades, Africa has been the world’s most commodity-dependent continent. At the same time, it has become overly reliant on imports from the rest of the world: intracontinental trade accounts for only 15 percent of total African trade, compared to 60 percent in Asia and 70 percent in the EU. Worryingly, imports of manufactured goods into African countries have grown by more than 25 percent over the decade ending in 2022. The continent’s import dependency can be explained primarily by the dearth of African industrial entrepreneurs. And Africa’s projected population growth and burgeoning middle class suggests that this dependency will only grow in the medium term, with significant implications for macroeconomic stability, unless local actors begin driving innovation and creating new products and services to meet the needs and desires of domestic consumers. The problem, however, is not sustained import growth per se, especially when the rise of global value chains and increasing fragmentation of production have reduced the power of exports as a driver of short-term demand. Instead, the main issue is that African countries are participating in global value chains largely through backward activities, systematically exporting natural resources and primary commodities and importing manufactured goods, an imbalance that drains wealth away from the continent. For African fossil fuel-producing countries, the carbon-intensive “round-tripping” model of exporting crude oil and importing refined petroleum has been costly, resulting in immense deadweight losses and foreign exchange leakages. In Nigeria, for example, the opening of a much-anticipated oil refinery could save the country...

Denmark and TradeMark Africa have inked a shillings 16.5 billion deal to upscale Uganda's trade. The Royal Danish Embassy in Kampala, through the Danish International Dev't Agency (DANIDA), signed on behalf of Denmark. The agreement of a five-year project is intended to boost Uganda’s trade. Code-named Uganda Trade Support Project 2023/2024, it targets to strengthen government export quality management systems for compliance with International sanitary standards. In her remarks at the signing of the bilateral agreement at Sheraton Kampala Hotel, Danish Ambassador to Uganda Signe Windining Albjerg noted that the project will support the construction of a climate-resilient, gender and disability-responsive border market at Elegu. She emphasised that this will enhance trade in the region and enable adaptation to extreme weather conditions. "In Uganda today, we are faced with a real problem of trade hindered by the effect of climate change, specifically floods, also at the Elegu border. Elegu border is mainly characterised by informal trade. 63% of the Elegu market traders are women of which 70% trade in agricultural-related products," said the diplomat. The Danish Ambassador to Uganda Signe Windining Albjerg and Josepha Ndamira TradeMark Africa Senior Director Corporate Resource (L) pose for a photo after signing the new commitment under the Uganda Trade support project at Sheraton hotel. (Photo by Violet Nabatanzi) The Danish Ambassador to Uganda Signe Windining Albjerg and Josepha Ndamira TradeMark Africa Senior Director Corporate Resource (L) pose for a photo after signing the new commitment under the Uganda Trade support project at Sheraton hotel....

Clement Tulezi, Chairperson, National Horticulture Taskforce (L) and Ahmed Farah, Kenya Country Director, TradeMark Africa pose for a photo after signing the partnership agreement aimed at strengthening and sustaining trade and investment in Kenya's fresh produce exports TradeMark Africa and National Horticulture Taskforce forged alliance to boost fresh produce export market. In Summary Kenya seeks to transition 50 percent of fresh produce exports from air to sea freight by the year 2030. The transition is both an environmental choice and a vital economic advantage to secure its fresh produce exports. TradeMark Africa (TMA) has signed a technical and financial support agreement with the National Horticulture Taskforce (NHT). The two partners committed to strengthening and sustaining investments in Kenya's fresh produce exports. The agreement was signed as part of the EU-funded Business Environment and Export Enhancement Programme (BEEEP), which is among other areas supporting the transition of 50 percent of fresh produce exports from Kenya from air to sea freight by the year 2030. The agreement was signed at an event that brought together stakeholders from the logistics sector to assess the state of agro logistics in Kenya and review the development of Kenya’s master plan on the modal shift of fresh produce exports from air to sea freight. Clement Tulezi, Chairperson, of the National Horticulture Taskforce said Kenya’s transitioning from airfreight to sea freight is not only an environmental choice but a vital economic advantage to secure its fresh produce exports, as supermarkets in the UK and Europe seek to...

TradeMark Africa (TMA) has signed a technical and financial support agreement with the National Horticulture Taskforce (NHT). The two partners committed to strengthen and sustain investments in Kenya's fresh produce exports. The agreement was signed as part of the EU-funded Business Environment and Export Enhancement Programme (BEEEP), which is among other areas supporting the transition of 50% of fresh produce exports from Kenya from air to sea-freight by the year 2030. The agreement was signed at an event which brought together stakeholders from the logistics sector to assess the state of agro logistics in Kenya and review development of Kenya’s Masterplan on the modal shift of fresh produce exports from air to sea freight. Kenya’s transitioning from airfreight to seafreight is not only an environmental choice but a vital economic advantage to secure its fresh produce exports, as supermarkets in the UK and Europe seek to diminish their climate footprint. Airfreighting from Kenya to Europe generates substantially higher greenhouse gases compared to sea freight (1 kilogramme of airfreighted green beans emits as much as 177 kilogrammes of sea freighted green beans). Part of the targeted initiatives by the NHT include building the capacity of producers of horticultural products to utilise sustainable processes including the use of renewable energy in farms, implementing various water conservation methods and transitioning exports of fresh produce from air freight to sea freight. Henriette Geiger, Ambassador of the European Union to Kenya said, “We are fully in support of the NHT as we transition the avocado, mango and vegetable value chains towards more sustainable production processes from farm to fork. This also aligns with our...