A new report found that multiple testing of products for standards and lack of knowledge of export procedures by suppliers and traders are among factors making farmers hoard their produce.
Statistics from the Common Market for Eastern and Southern Africa (Comesa) show that intra-Comesa trade currently stands at seven per cent of the global trade.
Kenya Trade Principal Secretary Dr Chris Kiptoo called for concerted efforts from the public and private sector to dismantle constraints to effective business linkages.
Restrictions on imports and exports of agricultural products have been blamed for the low intra-regional trade.
A new report found that multiple testing of products for standards and lack of knowledge of export procedures by suppliers and traders are among factors making farmers hoard their produce.
The others are poor prices and political interference through trade restrictions on certain products.
The study, Towards Fostering Business and Trade Within the Supply Chain Networks Along the Eastern and Southern Africa Transport Corridors: An Agro-industry Corridor Project, covered eight countries — Kenya, Uganda and Rwanda on the Northern Corridor; South Africa, Zambia and Zimbabwe on the Southern Corridor; and Tanzania and Democratic Republic of Congo on the Central Corridor.
“The restrictions on imports and exports of agricultural products is a serious barrier to food circulation and the trade in food crops in the region,” the study notes.
Funded under the Africa Development Bank-Korea-Africa Economic Co-operation theme of Transforming Africa’s Agriculture through Industrialisation and Inclusive Finance, the study sought to find how Corridors can generate economies of scale in agriculture and other priority sectors through fostering potential business partnerships.
Intra-Comesa trade
Statistics from the Common Market for Eastern and Southern Africa (Comesa) show that intra-Comesa trade currently stands at seven per cent of the global trade, with exports at $8 billion as of 2016; and agriculture is a key component of the trade consisting of tea, coffee and sugar cane among others.
Speaking recently in Nairobi at a validation workshop for the study, Comesa Business Council chief executive Sandra Uwera said that the agricultural sector is underperforming in many countries as producers and industries face productivity and competitiveness constraints.
“Africa’s food import bill is estimated to be around $35 billion, meaning that our intra-regional trade remains depressed, with the primary produce being cereals. The intra-regional trade at 7 per cent therefore could be increased if businesses are facilitated with the information that would enable them to trade,” said Ms Uwera.
Concerted efforts
Kenya Trade Principal Secretary Dr Chris Kiptoo called for concerted efforts from the public and private sector to dismantle constraints to effective business linkages.
The chairperson of the Kenya Association of Manufacturers Florah Mutahi said unless small and micro enterprises are competitive, regional integration would remain a mirage.
“The contribution of agriculture in manufacturing needs to be stepped up with value addition. We need to address the issues that hinder participation of buyers and sellers,” she said.
