9th-agts-2023-7

Here’s how the 9th AGTS discussion revitalized resilience in Africa’s grain sector

by ArticlesFeatured

On 7th to 9th October 2021, the Eastern Africa Grain Council (EAGC) in partnership with the Government of Kenya hosted the 9th African Grain Trade Summit (9th AGTS) at the Diani Reef Beach Resort in Ukunda, Kwale County, Kenya.

The summit which carried the theme “The Future of Grain Trade in Africa: Revitalizing Resilience in Grain Value Chains” while the previous AGTS (8th AGTS 2019) carried the theme, “Transforming Grain Trade Value Chains for a Prosperous Africa” and was more forward-looking as it tried to inform the necessary policies and interventions to make the grain sector better prepared to serve a highly dynamic world. Since then, the Covid-19 pandemic disrupted global, regional and domestic grain value chains.

With the global economy adjusting to a new normal and with the Covid 19th Pandemic still relevant, the 9th  AGTS theme was about recovery of the grain sector and making it more resilient against future disruptions. Additionally , the past two years have seen a renewed focus on food safety in commodity trade. Media exposés on food safety, particularly the plight of aflatoxin in maize and groundnuts have led to increased scrutiny on grain value chain operations by regulators.

Africa is becoming increasingly important in global grain trade with a widening import gap (estimated at US$ 43 billion in 2019 and projected to reach US$90 billion by 2030) resulting from food production and productivity growth lagging behind , growth in demand to feed fast-growing and rapidly urbanizing populations makes Africa an increasingly important destination for grain commodities produced outside Africa particularly rice, wheat and soybeans – and in some cases maize.

Africa’s untapped agricultural potential is attracting increased interest from more advanced economies looking to invest in agricultural production on the continent to feed their industries and populations. This is exemplified by China-Tanzania deals for soybean production in Tanzania for export to China and growing movement towards adoption of biotechnology in African food systems. These trends present both opportunities and challenges for Africa, thus presenting a need for strategic dialogue to equip the sector to navigate these opportunities and challenges accordingly.

Climate change is causing increasingly erratic production, more food insecurity and greater pressure from invasive pests than ever before. Yet demand for food grains continues to growth unabated. Therefore, grain sector agribusiness models need to adapt to climate change for greater sustainability. This presents a need for an in-depth look into modalities to mitigate climate risks and come up with appropriate recommendations.

The 9th AGTS discussions on the future of grain trade in Africa revitalized resilience in grain value chains. The communique can be found here.

9th-agts-2023-

Communique on the 9th African Grain Trade

by Communiques

The Eastern Africa Grain Council in partnership with the Government of Kenya hosted the 9th edition of the African Grain Trade Summit (9th AGTS) which was held from 7th to 9th October 2021 at the Diani Reef Beach Resort in Ukunda, Kenya. The theme of the summit was “The Future of Grain Trade in Africa: Revitalizing Resilience in Grain Value Chains.”

Graced by the Cabinet Secretary Ministry of East African Affairs and Regional Development – Hon Adan Mohammed, the summit was the first edition ever to be hosted by EAGC simultaneously in a physical venue and online in a hybrid format. A physical conference, exhibition, field visits and networking events were hosted at the Diani Reef Beach Resort in Ukunda, Kenya, taking into consideration all Covid-19 protocols, while an online platform was utilized to allow delegates from around the world to join the deliberations and engage virtually.

The summit was sponsored by Grain Bulk Handlers Ltd , the Alliance for a Green Revolution in Africa, Grain Industries Ltd, Capital Reef Ltd, Igrain and EFKEN Leasing Ltd where over 150 high level delegates drawn from all over the world participated physically while over 70 delegates joined in virtually. 12 grain agribusiness organizations also exhibited at the sidelines of the summit.

Read the full communique
eagc-8th-agts-min

The 8th AGTS Communique

by Communiques

The Eastern African Grain Council (EAGC) successfully hosted 8th African Grain Trade Summit in Mombasa, Kenya from 3rd to 5th October 2019. In attendance were more than 250 grain industry leaders, researchers, service providers, innovators and development partners from 17 countries across 4 continents, in addition to 19 exhibiting companies.

The Grain Trade Summit was convened with extensive support from various partners, including the European Union Technical Centre for Agriculture and Rural Corporation (CTA) and the Government of Kenya. Sponsors at the Summit included the Grain Bulk Handlers Ltd, Grain Industries Ltd, the Climate and Development Knowledge Network, International Finance Corporation-World Bank Group, the USAID Kenya Crops and Dairy Market Systems Activity, A to Z Textile Mills Ltd, TANIS Milling Technologies and Isuzu East Africa; and Media partners including KBC, K24, and People’s Daily Newspaper among others.

The African Grain Trade Summit (AGTS) is Africa’s premier grain industry event that is hosted biennially by the Eastern Africa Grain Council and its Partners. Its main purpose is to drive business environment improvements to support growth of grain sector agribusinesses, to facilitate business and investment partnerships and to share new knowledge and innovations that can be leveraged to drive growth of the sector.

Recognising that grain trade enterprises play a vital role in ensuring that all people have access to food, keep prices stable and provide a market for producers and traders, the 8th AGTS carried the theme, “Transforming Grain Trade Value Chains for a Prosperous Africa”. In selecting the theme, EAGC considered the importance of grain trade in food security, manufacturing, investment and employment creation, noting that it is crucial for the grain value chain players to apply their voice in order to influence policies and ensure that the business environment for grain trade is continuously improved.

Representing the Chief Guest of the Summit, His Excellency President Uhuru Kenyatta of Kenya Dr. Andrew Tuimur, Chief Administrative Secretary in the Ministry of Agriculture, Livestock and Fisheries, graced the occasion and officiated the opening of the Summit accompanied by other high level dignitaries who included the Senate Standing Committee for Tourism, Trade and Industrialisation, led by its Chairman, Sen. Charles Rebeunson Kibiru; the National Assembly Departmental Committee for Agriculture and Livestock, led by its Chairman, Hon. Adan Haji Ali; the Cabinet Secretary for Trade, Hon. Peter Munya, and the Principal Secretary for Trade, Dr. Chris Kiptoo, both of whom were represented senior officials in the Ministry of Trade; the EAC Deputy Secretary General for Productive and Social Sectors , Hon. Christophe Bazivamo; a delegation of the Ministry of Agriculture and Food Security of South Sudan; the High Commissioner of Tanzania to Kenya, H.E. Dr. Pindi Chana; the High Commissioner of Malawi to Kenya, H.E. Agrina Mussa, represented by Mr. Mapopa Kaunda, Counsellor and Head of Chancery; the Ambassador of DR Congo to Kenya, Ambassador Michel Bizimungu Mubare, represented by Mr Kaninda; the Provincial Minister of Agriculture for Maniema Province in DR Congo, Hon. Kanefu Sumaili John; the Governor of Tharaka Nithi County, represented by Hon Njagi Njue, the County Executive
Committee Member for Agriculture, Livestock, Fisheries and Cooperatives; development partners from the EU Technical Centre for Agriculture and Rural Cooperation (CTA),the United Nations Economic Commission for Africa, USAID Kenya and East Africa; and the Board of Directors and Members of EAC led by the Chairman of the Board of Directors, Prof. Samwel Wangwe.

Read the full communique
@UnSi0oxyP9VYvGc

Communiqué on the 7th African Grain Trade Summit

by Communiques

5th to 7th October 2017, White sands Hotel, Dar es Salaam, Tanzania

Theme: Setting New Horizons: Rethinking Grain Trade for Food Security and Prosperity in Africa

The Eastern Africa Grain Council (EAGC) in partnership with the USAID-East Africa Trade and Investment Hub and the Government of the United Republic of Tanzania hosted the 7th African Grain Trade Summit from 5th to 7th October 2017 at the White sands Hotel in Dar es Salaam, Tanzania.

Every two years, EAGC hosts its flagship policy conference known as the African Grain Trade Summit (AGTS). The AGTS is a biennial high-level international event dedicated exclusively to the grain sector in Africa. It brings together business influencers, policymakers and other critical stakeholders from the African continent and beyond to provide a unique platform to drive the development agenda of the sector and promote grain sector business networking.

It is in this context that the 7th AGTS aimed to facilitate a reflection of the road travelled over the past 10-15 years in grain sector in Africa to create a new vision and strategic thrust for the transformation of the grain sector. At a time when EAGC is commemorating its 10th anniversary, the 7th AGTS was a landmark Summit that expected to reshape grain trade policy in Africa in the context of Africa’s overarching development vision and global food trade dynamics

The theme of the 7th AGTS was, “Setting New Horizons: Rethinking Grain Trade for Food Security and Prosperity in Africa.” Under this theme, the 7th AGTS sought to draw attention to trends and developments in the grain sector and provide strategic guidance to find new solutions to chronic problems of food security and poverty in Sub-Saharan Africa. The Summit brought together over 300 delegates from 16 countries within and outside Africa representing the public sector, the private sector, research institutions, development partners and representatives of foreign missions in Tanzania. In addition, 20 exhibiting companies also showcased their technologies and innovations in the sector.

Read the full communique
Grain-Trade-conference-eagc-agts

Defining Africa’s Place in Global Grain Trade for Sustainable Food Systems

by News Updates

As Africa fights off the remnants of the Covid-19 pandemic, a new challenge has emerged. Many parts of the continent are now facing a food crisis, the most severe one since 2007/2008. According to the International Monetary Fund, staple food prices in sub-Saharan Africa have increased by an average 23.9% between 2020 and 2022—the most since the 2008 global financial crisis, commensurate to an 8.5 percent rise in the cost of a typical food consumption basket (food inflation). In both Kenya and Nigeria, the price of staple foods such as maize flour has more than doubled in the past 12 months while in Tanzania, cooking oil prices had increased by almost 30%. Drought in many parts of East Africa is also putting millions of people at risk of starvation.

The impending food crisis in the continent is precipitated by Africa’s overdependence on global markets for both staple foods and farm inputs, despite possessing significant local production capacity. The ongoing Russia-Ukraine war, fought between two of the most important producers of food and agro-chemicals in the world, has cut off Africa’s main source of these commodities. The International Trade Centre (ITC) reports that in 2020, African nations imported agricultural items from Russia and Ukraine worth US$6.9 billion of which 90% of those items were wheat and 6% of sunflower oil. And Wheat made up around 48% of these items, followed by corn (31%), sunflower oil (the remaining 2%), barley, and soybeans. Moreover, 16 African nations with a combined total of 374 million people (almost 40% of the continent’s population) are more than 56% dependent on Russian and Ukrainian wheat. Eritrea (100%), Somalia (90%), Seychelles (90%), DRC (85%), and Egypt (80%) are the most dependent. The ongoing conflict has caused a sharp increase in the cost of staple food grains, with the price of wheat almost doubling in mid-2022 compared to a year earlier, and worsened fertiliser prices which were already on the rise prior to the war.

Africa’s overdependence on other parts of the world has also left it at the mercy of high costs of global trade logistics, which are at least partly caused by high energy prices and a surge in demand for trade services as economies re-open after the pandemic. Shipping costs have increased almost 5 times compared to pre-pandemic levels; for instance, the cost of shipping a 40ft container (25MT of rice) from India/Pakistan to East African ports such as Mombasa, Kenya has increased from between US$800 and 900 to US$4,200, with the final consumer paying a higher price.

With many African countries still reeling from the effects of the Covid-19 pandemic and the forces of climate change, the high costs of food, farm inputs and energy, broader economic challenges and the looming threat of a global recession, it is evident that the grain sector on the continent faces an existential threat.

It is thus clear that Africa needs to be more self-reliant and more resilient to global shocks that are currently wreaking havoc on the continent. The African Continental Free Trade Area (AfCFTA), while still in its infancy, could prove vital in deepening food trade integration within Africa to take advantage of existing production and trade opportunities within the continent and to build resilience to external shocks. The AfCFTA could thus be critical for:

  1. Reducing overdependence on global markets for farm inputs and food
  2. Strengthening food security in the continent and
  3. Creating meaningful investment and employment opportunities through intra-African grain trade

The 10th AGTS will look for solutions to build on these beneficial policy improvements since it recognizes that many trade-enabling policy reforms are already in place in all the aforementioned sectors. The 10th AGTS will make an effort to achieve this by promoting industry engagement to develop workable solutions that will positively improve the value chains of the grain trade and ultimately put the African grain sector on a path to sustained success.

Why is the AGTS important to global grain sector players?

by News Updates

In many regions of Africa and the rest of the world, grain trade enterprises—including farmers, aggregators, merchants, processors, and service providers—play a significant role in the socioeconomic system. Nearly half of all food trade in Eastern and Southern Africa involves grains. Such trade takes advantage of already-existing trading opportunities between nations brought on by variations in their various agricultural harvest schedules and capacities to generate enough food grains. In order to ensure that everyone has access to food, to keep prices stable and at levels that are affordable, and to offer a market for producers and dealers, these businesses do more than merely fulfil a commercial opportunity to generate profits.

An opportunity to shape the business environment to help grow grain agribusinesses
The business environment for the grain sector is determined by government regulations that affect grain trade. Thus, the nature of these policy choices may either strengthen grain agribusinesses or significantly reduce their chances. The problems that grain trade value chains, from farmers to consumers, face is inextricably linked to policy developments at the national, regional, and continental levels. These difficulties include weak market linkages, adherence to grain standards, and inadequacy of financial services for the sector, to name a few.

It is crucial that participants in the grain value chain utilize their voice to influence legislation and to make sure that the business environment for grain trade is continually enhanced, given the significance of grain trade in food security, manufacturing, investment, and employment generation. The AGTS offers a highly effective venue for enhancing the business climate for the grain sector by giving grain industry executives the chance to have an open, sincere, and fact-based discussion with senior technocrats and politicians about issues pertaining to the grain sector. As outlined in the infographic below, the AGTS has had a direct impact on a number of policy reforms, including the harmonisation of trade policies, particularly grain standards in the East African Community, the lifting of trade restrictions on grains, the establishment of systems for structured grain trade, and even the very existence of the EAGC as the leading organization for the grain sector in Eastern Africa, serving as a voice for the sector.

An opportunity for strengthen grain trade linkages and networks
The AGTS performs an essential business role by enabling grain industry participants to expand their business networks and take advantage of new business possibilities. It brings together a varied group of international grain industry professionals from all across Africa and beyond. A Grain Trade Facilitation Forum and an Investment Matchmaking session are two special business side-events that the AGTS sponsors. These events bring together professionals in the grain industry to discuss trade and market prospects and to form new investment alliances, respectively. In this way, the AGTS promotes increased private sector investment in grain value chains for the benefit of business prosperity while also enhancing the volume and value of grain trade.