February 5, 2024
East African grain export receives US$2 million boost to drive competitiveness
TradeMark Africa has allocated a grant of US$2 million to Kenya, Uganda, and Tanzania, part of a comprehensive three-year programme with the aim of enhancing the competitiveness of export-oriented staple food value chains in the East African region, Business Insider Africa reported.
This substantial grant is a key component of a broader five-year, US$75 million collaboration between the US Agency for International Development's Economic Recovery and Reform Activity program and TradeMark Africa. Supported by Feed the Future, this initiative is focused on promoting sustainable economic development in East Africa.
TradeMark Africa's CEO, David Beer, said the primary objective of the grant is to drive competitiveness of export-oriented staple food value chains within the East African market. The region faces challenges such as low grain production, inadequate post-harvest management, compliance issues with international standards, and climate-related pressures, all of which hinder its potential as a major player in the global grain supply chain.
Addressing these challenges, Beer explained that the facility, in collaboration with the East Africa Grain Council (EAGC), will work towards reducing trade barriers, strengthening the capacities of grain exporters, and implementing innovative strategies such as Grain Business Hubs (G-Hubs). Operated by farmers and leveraging technology, G-Hubs aim to improve grain quality and facilitate trade, particularly in commodities like corn, beans, millet, sorghum, and rice.
The EAGC, in conjunction with the grant, will support over 80 Small and Medium-sized Enterprises (SMEs) in complying with Sanitary and Phytosanitary (SPS) requirements governing the health of traded animals and plants. Additionally, the initiative will adhere to Standards Quality Infrastructure (SQI) guidelines, ensuring quality, health and safety systems, and environmental protection, crucial for export capacity. An information centre will also be established to provide real-time data and insights for shaping national and regional food balance sheets.
Gerald Masila, the executive director of EAGC, emphasised the long-term impact of fortifying grain business hubs and enhancing the capacities of SMEs. Masila said that the grant lays the foundation for sustained growth in the East African grain sector.
- Business Insider Africa
