In December, the EU and Kenya signed a trade agreement featuring strong provisions on environmental, social and labour standards. Niels Keijzer, Frederik Stender and Tim Vogel write that as Kenya walks the fine line of compliance, the outcome could not only shape the country’s economic landscape but also have implications for Kenya’s role in the African Continental Free Trade Area. Trade policy is a tough business in today’s competitive global landscape. Despite its considerable experience in this area, the European Union has experienced this first-hand. While the trade agreement between the EU and the Southern American trading bloc Mercosur remains in limbo, the EU’s trade negotiations with Australia collapsed due to differing ideas about market access. Talks on agreements with Indonesia and India are also not going smoothly. A common stumbling block is the EU’s desire to use trade agreements to promote its values and standards in a variety of areas. Further below the public radar, however, the EU has recently concluded such a “comprehensive” trade agreement – and with a close and growing market. After reaching a political agreement in the summer of 2023, the EU signed a trade agreement with Kenya on 18 December. The agreement will enter into force once the European Parliament has given its consent and the EU and Kenya complete their respective legal procedures. The agreement The EU-Kenya agreement features among the EU’s most ambitious trade agreements concluded with developing countries, not just in relation to trade but also with respect to broader objectives. Beyond the conventional focus on tariffs, the agreement...

Avocado stakeholders have warned producers and exporters to stick to global standards if they are to earn from the high-value fruit following a harvesting suspension that has been in place since October last year. Okisegere Ojepat, the Chief Executive Officer, Fresh Produce Consortium of Kenya warned those involved in the export of immature avocados that they risked various penalties, including cancellation of their licenses. Ojepat added, “But even if the market opens, it’s not a guarantee that everything will go away. We must ensure by all means that we guard this market by maintaining the highest quality standards. For those who do not comply, the law will take its course.” He said that government inspectors are carrying out an assessment to ensure that the country has a proper fruit that is mature, and has the right dry matter content as is required. “No avocado will be allowed to the export market without attaining the required 24 percent dry matter content,” added Ojepat.“We want to encourage our members to comply with the world global standards that the market requires and to ensure that the dry matter and traceability are maintained in the certification but most importantly they secure their orders and secure proper arrangements.” Ojepat said the sector players are upbeat about good fruit and high volumes following indicators from the field inspections. The production volumes, he added, are expected to increase by 10-12 percent. “We are looking forward to a good season following good rains and capacity building exercises that...

For many Rwandan women living near the country’s boundary with the Democratic Republic of the Congo (DRC), cross-border trade is a major part of their livelihoods. For Verena, a mother of five who regularly makes the 10km journey from the Rwandan wholesalers to the Rusizi II border to sell produce, this is her family’s sole source of income. If she is unable to find a truck to transport everything across the border, Verena must carry the produce the last kilometre by herself, which means spending most of the day on the road. “At times we carry products on our heads, which in that case means going back and forth at least three times a day,” Verena tells Robert Kovacs, who visited Rusizi last May with the International Organization for Migration (IOM). Cross-border traders like Verena can expect to make a profit of around 1,000 RFW a day – well below the global poverty line of US$2.15. What’s more, Covid-related restrictions at the border now mean Rwandan traders have to rely on brokers to sell their products in Congolese markets, which can be costly. “Agents often cheat us by lying that they made losses,” says Verena. “Others take products on credit and don’t pay, which exposes us to losses and hurts our trade.” In the face of these challenges, women like Verena who trade across the Rwanda-DRC border have turned to the co-op model for protection, and to pool their resources. For the past three years, the IOM has been working with...

Trade Principal Secretary Alfred K' Ombudo on Wednesday clarified that there is currently no ban on Air Freight Exports for fresh produce from Kenya to the European Union. The PS noted that the government was not aware of any ban on Kenyan fresh produce exports as earlier indicated by reports by a local daily. “So, there is no ban, and for our exporters, sea freight is a useful addition to airfreight,” the PS clarified. Media reports which have since been flagged as inaccurate had indicated that Kenyan exporters were currently shifting to sea freight for fresh produce as opposed to air travel which the European Union (EU) had allegedly banned. However, the PS elaborated that Kenyan exporters already preferred to use the sea as it was a cheaper and allows for more customised cold storage facilities. As such, he stressed that the trend was not informed by a ban but rather, shaped by preference. Different types of flowers in containers awaiting shipment.  “Already, a substantial quantity of Kenyan exports into Europe are freighted by sea. These are for products such as mangoes and avocadoes," PS Ombudo noted. Some commentators had previously argued that sea freight was costlier and a slower means of delivering fresh produce to the EU, a comment which the PS has contested. “And although most flowers are freighted by air, some are starting to use sea freight, as this will get cheaper and greener,” Ombudo stated. The PS further revealed the government’s plans and involvement to increase the transition...

NAIROBI, Kenya Feb 1 – Kenya and South Africa on Thursday intensified their efforts to strengthen the African Continental Free Trade Agreement (AfCFTA) framework. The two nations that share cordial bilateral relations, marked a significant moment by initiating the first shipment of products under the AfCFTA framework across the African continent. South Africa led the way by sending a shipment containing refrigerators, paperboard, and steel products destined for the Kenyan market. The launch occurred on the sidelines of the 13th AfCFTA Council of Ministers Meeting in Durban, with the President of the Republic of South Africa, Cyril Ramaphosa, presiding over the ceremony. Rebecca Miano, the Trade Cabinet Secretary in attendance, commended the initiative, highlighting the tremendous opportunity it presents for enhanced trade between the two nations. “This action serves as a clear indication that South Africa is open for business within the AfCFTA framework,” she said. Cabinet Secretary Miano emphasized that the consignment from South Africa serves as a genuine testament to the nation’s readiness for strengthened trade ties. “South Africa has confirmed its readiness to trade under the framework. It is also an indication that South Africa is ready to receive imports from the AfCFTA countries whose tariff offers have been finalized and adopted by the African Union Assembly,” she said. Kenya embraced the AfCFTA initiative early on, initiating its first shipment of tea and later expanding its exports to various products in 2022. The AfCFTA, with a collective population of 1.3 billion people and a combined GDP exceeding...

  The United States Agency for International Development-USAID’s Strategic Partnership Program (USPP) and the Fresh Produce Consortium of Kenya (FPC-Kenya) today organized an avocado consultative meeting to discuss quality standards and compliance for local and global markets further aiming to improve farmers’ production and livelihoods. According to Dr. George Njenga, Chief of Party at USAID-USPP, avocado has emerged as one of the fruits transforming livelihoods of communities yet the effect has not been felt fully by smallholder farmers in Kenya. “In Kenya, the most benefiting from this sub-sector are the big players who controls the market at the expense of our small-scale farmers in the rural areas who are still poorly organised making capacity building on issues around standards adherence for them challenging,” said Njenga. This is why this program is coming in to, one, set up a system through small and medium enterprises (SMEs) to help offer advisory services to the farmers and connect them to the markets, two, to bring together the growers so that we have the capacity to produce enough for the market and to help all counties within the arid and semi-arid lands (ASALS) adopt resilient practices in the wake of climate change.” Njenga also stressed that the 5-year program which is implemented by Strathmore University Business School (SBS) and funded by the USAID will be focusing on building resilient and sustainable businesses for social-economic transformation through three main pillars: Agency and Voice of the Private Sector (AVPS), Kenya Small Business Development Centers (Kenya SBDC),...

  In 2019, the Private Sector Federation of Rwanda (PSF) launched its 5 years strategic plan focusing on capability development, research and advocacy, green economy, and digitalization. Among emerging areas for intentional development from that strategic plan was the message that there was a clear need for private sector members and companies need to be given attention and integrate digitization into their development strategies and day-to-day plans. With this scope, all PSF organs were tasked to adopt digitalization hence leading by example its company members. This came at a time whereby technological advancements in Rwanda over the past two decades have elevated the country to the League of Africa’s most innovative countries. This has provided an excellent basis upon which new innovations can be established in every sector of the economy. Due to affirmative action and political goodwill, women in Rwanda have taken an active role in leadership both at the local and national levels. To illustrate the key role that women play in national affairs, statistics show that even with the female population currently at 51 per cent, women still hold the lion’s share of parliamentary seats at over 60 per cent. Indeed, the country has long held the global record for the highest proportion of women parliamentarians. It is in recognition of this background that the Specialized cluster of the Private Sector Federation (PSF-SC) decided to further promote the activities of women traders in the country by creating an innovative online platform, www.iSOKO.com that has been launched today 17 August...

In Summary Trademark Africa donated the plants through funding from Global Affairs Canada (GAC). Agriculture Principal Secretary Paul Ronoh said farmers should now seize the opportunity to enhance food productivity. The government has received a donation of two state-of-the-art industrial mycotoxin decontamination plants in a major boost towards efforts to advance food safety and security. The plants, installed at the NCPB warehouses in Bungoma and Nairobi boast of capacity to process at least 10 tons per day of various commodities, focusing on those affected by mycotoxin. Utilising an ozone-based solution, the plants are designed to eliminate a staggering 95 per cent of aflatoxin contamination in grains, pulses, nuts, and other food commodities. Speaking on Thursday when he commissioned the Bungoma plant, Agriculture Principal Secretary Paul Ronoh said farmers should now seize the opportunity to enhance food productivity. TradeMark Africa donated the plants through funding from Global Affairs Canada (GAC). The Ministry of Agriculture in collaboration with the organization and support from GAC is spearheading an integrated solution to mycotoxin management. "The collaboration between TradeMark Africa and the ministry is a pivotal step towards sustainable agricultural practices benefitting both farmers and consumers alike," he said. Agriculture Principal Secretary Paul Ronoh speaking during the commissioning of the industrial mycotoxin plant at the Bungoma NCPB on February 1, 2024. Image: HANDOUT The strategic placement of the plants at the NCPB warehouses in Bungoma and Nairobi, he said, ensure proximity to key trade borders like Malaba, Busia and Namanga. This aims to prevent disruptions to...

The National Cereals and Produce Board (NCPB) has received two plants worth Sh190 million to help clear aflatoxins from maize stocks at its depots. Aflatoxins are a family of poisons produced by fungi in crops such as maize, peanuts, cottonseed, and tree nuts. The aflatoxin decontamination plants have been installed at NCPB’s depots in Bungoma and Nairobi. The equipment Canada donated through TradeMark Africa (TMA) reduces aflatoxin contamination in grains such as maize. The funding is part of a Sh350 million package from Canada. The remaining funds have been allocated for training and creating more awareness on aflatoxins to regulatory agencies, farmers, and traders in Kenya, Tanzania, and Uganda on managing aflatoxins in grain supplies. They are also the first plants for commercial decontamination of aflatoxins in Africa and eliminate up to 98 percent of aflatoxins in food commodities like grains, pulses, and nuts, according to the TMA. “This facility is potentially a game-changer. It is now possible to reduce aflatoxin contamination in grains post-harvest, so reducing the amount rejected at the border,” said TMA CEO David Beer. “This will benefit small-scale farmers and traders on the one hand, and consumers such as schools, humanitarian agencies, and businesses on the other.” The two plants will ensure that only grains meeting acceptable aflatoxin limits are traded, which is vital for public health and safe trade practices. “If we are to tackle food security and food safety issues not just in Kenya but across East Africa, there is no denying that partnerships...

With a combined GDP of $305 billion and a population of 283.7 million, EAC membership offers a broader market, increased investment opportunities. Despite being a nation that’s just emerging from civil war, Somalia is carving out a new narrative of growth as it stands on the cusp of new era of entrepreneurialism and trade. Its acceptance into the East African Community (EAC) is a significant stride in Somalia’s history. With a combined GDP of $305 billion and a population of 283.7 million, EAC membership offers a broader market, increased investment opportunities, and will connect the large Somalia diaspora within East Africa with home. For two decades, the Somalian banking sector has been laying the foundations for Somalis to optimize on this opportunity. Its innovation journey is edged towards giving Somalia entrepreneurs the financial infrastructure to thrive. Entrepreneurs make up 76 percent of the population and prioritizing them will be the catalyst for trade with Somalia’s regional neighbours. One of the leading banks in the country, Salaam Somali Bank has established itself as a key player in this transformation by introducing pioneering fintech services. Its mobile banking service, Deeqtoon was the first mobile banking service in Somalia. Launched in response to a demand for service availability and a drive to expand service use capacity, Deeqtoon is now a cornerstone for transactions. The one stop platform offers services ranging from account-to-account transfers to electronic deposits and withdrawals, for both individuals and corporate entities. Deeqtoon also acts as a bridge between formal and...