logo
East African Community partners frustrate movement of grain amid shortage

East African Community partners frustrate movement of grain amid shortage

Zawya6 days ago
As the East African Community (EAC) member states gear up for the 2025/26 grain trading season, persistent trade restrictions are inflating prices and worsening food insecurity across the region.
Authorities continue to impose various barriers to the cross-border movement of grain at a time when governments are grappling with seasonal food shortages, growing refugee populations, climate-induced challenges, and dwindling humanitarian aid.
For example, Uganda has introduced a $10 per metric tonne levy on key by-products like wheat bran, cotton cake, and maize bran. The levy, implemented this financial year, is meant to promote domestic value addition, particularly in the livestock feed industry. But the policy has pushed up costs for regional buyers such as Kenya, which relies heavily on Ugandan grain for animal feed.
In Tanzania, the government's selective issuance of export permits has hindered direct grain purchases by foreign buyers, raising delivery costs across regional markets.
Isaac Kashaija, chairman of the Uganda Rice Business Association, says the disruptions have fractured traditional supply chains.'Foreign traders used to drive directly to the farms, purchase produce, and transport it to Kampala using Ugandan trucks,' he said.
Due to these restrictions, the price of Tanzania's Super rice variety has jumped from Ush4,000 ($1.11) to Ush5,000 ($1.39) in Kampala and surrounding areas.'We now have to wait at the Mutukula border or in Kampala for Tanzanian drivers to deliver,' Kashaija said, citing increasing red tape in the permit process.
South Sudan, Kenya, Uganda, Rwanda and Tanzania, have raised concerns about non-tariff barriers. Authorities in Juba are retesting grain imports and charging additional fees, including $150 per container and $3,000 for an electronic permit.'We have protested these fees and clearance delays at Nimule, but our complaints are being ignored,' said Sudi Mwatale, chairman of the regional truck drivers association.
In April, South Sudan introduced a Regional Cargo Tracking System and e-permit, which requires taxes to be paid before goods leave the loading point.
In April 2025 alone, eight grain trucks were turned away in South Sudan for exceeding aflatoxin levels. Between April and July, an estimated 31,000 returnees in South Sudan were projected to face the most severe level of food insecurity.
South Sudan's crackdown on grain imports isn't new. Two years ago, it impounded 74 trucks, citing aflatoxin contamination. Since then, maize, beans, and flour shipments from Uganda, Kenya, and Tanzania have been repeatedly intercepted at Nimule.
Ongoing political instability has further complicated the market. The March 2025 house arrest of Vice-President Riek Machar intensified insecurity, with attacks on traders continuing.
Mounting trade obstacles have pushed exporters to reconsider certain East African markets. Recent data from the Bank of Uganda shows a sharp decline in the export volumes of beans, maize, and sorghum, except rice, over the 12 months ending May 2025, compared to the same period the previous year.
Beans exports dropped from 106,344 tonnes to 83,734 tonnes. Maize exports plunged 56 percent from 563,179 tonnes to 248,413 tonnes. Sorghum fell from 74,972 tonnes to 57,795 tonnes.
Despite being surplus producers of maize, Uganda and Tanzania are increasingly constrained in their ability to trade freely.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Safe-haven rush lifts gold on tariff turmoil, Fed cut hopes
Safe-haven rush lifts gold on tariff turmoil, Fed cut hopes

Zawya

time17 minutes ago

  • Zawya

Safe-haven rush lifts gold on tariff turmoil, Fed cut hopes

Gold edged higher on Thursday as renewed trade tensions sparked by steep U.S. tariffs boosted safe-haven demand, while a weaker dollar and growing interest-rate cut bets added to the bullion's appeal. Spot gold was up 0.4% at $3,380.81 per ounce as of 0851 GMT. U.S. gold futures gained 0.6% to $3,454.80. U.S. President Donald Trump's latest wave of tariff hikes, ranging from 10% to 50% and targeting dozens of countries, took effect on Thursday, testing the limits of his aggressive trade strategy. Trump also announced a 100% tariff on imported semiconductors, though exemptions would apply to firms that manufacture or commit to manufacturing in the U.S. The dollar fell 0.2%, dropping to a 1-1/2-week low, making gold less expensive for other currency holders. "Uncertainty is back in focus, especially with the latest developments on the tariff front, which is reviving safe-haven demand. We are also seeing support from broader macro sentiment, particularly with a softer U.S. dollar and growing expectations of Fed rate cuts," said ANZ Commodity Strategist Soni Kumari. "Tariffs remain a key catalyst, but the bigger trigger will be how the U.S. economy performs. If we see a significant slowdown in the second half, that could push gold toward our target of $3,500 by September." The Federal Reserve may need to cut rates in the near-term in response to a slowing U.S. economy, Minneapolis Fed President Neel Kashkari said. According to the CME FedWatch tool, markets are now pricing in a 93% chance of a 25-basis-point rate cut in September. Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment. "We still see some upward pressure on gold prices extending out through the end of 2026," NAB analysts said in a note, forecasting average prices of $3,220/oz in 2025 and $3,475/oz in 2026. Elsewhere, spot silver rose 0.9% to $38.20 per ounce, platinum was down 0.7% to $1,324.40 and palladium gained 1.8% to $1,152.46.

Etihad Cargo celebrates two-year milestone with Ezhou Huahu Airport
Etihad Cargo celebrates two-year milestone with Ezhou Huahu Airport

Zawya

timean hour ago

  • Zawya

Etihad Cargo celebrates two-year milestone with Ezhou Huahu Airport

EHU has enabled the movement of over 43,000 tonnes of exports and growing weekly services The partnership supports high-tech and e-commerce trade between China and the Middle East Abu Dhabi – Etihad Cargo, the cargo and logistics arm of Etihad Airways, is celebrating two successful years of operations at Ezhou Huahu Airport, marking a significant milestone in its strategic collaboration with SF Airlines. Since transitioning joint operations from Wuhan to Ezhou in August 2023, Etihad Airways is the first international airline to launch scheduled commercial freighter services in the region. Building on this milestone, Etihad Cargo expanded its presence at Ezhou Huahu Airport and announced a second weekly frequency in November 2023, followed by a third in July 2024, reflecting growing demand and operational momentum. Since August 2023, Etihad Cargo has operated two commercial freighter flights per week, one with Etihad Airways and the other with SF Airlines. From October 2023, the frequency increased to four flights per week, with two operated by Etihad Airways and the other two by SF Airlines. By July 2024, commercial freighter services had expanded further to five flights per week, with two operated by Etihad Airways and three by SF Airlines. Over the past two years, Etihad Cargo has operated 184 Boeing 777 freighter flights through Ezhou Huahu Airport in close cooperation with SF Airlines' over 200 flights with Boeing 747 freighters. The addition of a sixth weekly scheduled flight in July 2024, followed by a seventh in 2025, has further strengthened Etihad Cargo's network, improving connectivity and providing customers with faster and more efficient access to key global markets. In addition to scheduled services, charter freighter operations have also grown steadily. Etihad Cargo operated one charter freighter flight per week throughout 2024. From January to June 2025, the number of charter flights increased to three per week, supporting flexible and on-demand logistics solutions. Ezhou Huahu Airport began operations in 2022. The airport is Asia's first dedicated freighter hub and has been instrumental in enabling Etihad Cargo to deliver consistent and reliable service. Since 2023, more than 43,000 tonnes of export cargo and over 690 tonnes of import cargo have moved through Abu Dhabi via Ezhou Huahu Airport, reinforcing the hub's critical role in global logistics. Located in Hubei Province, the airport offers unrivalled domestic reach and growing international connectivity with 135 aircraft stands, dual 3,600-metre runways. 'This milestone reflects the operational success and strategic value of our collaboration with Ezhou Huahu Airport and SF Airlines,' said Stanislas Brun, Chief Cargo Officer at Etihad Airways. 'Ezhou's role as Asia's first dedicated freighter hub has allowed us to unlock new levels of efficiency and reach, particularly for time-sensitive e-commerce and high-tech shipments, supporting growing demand for cross-border e-commerce and high-tech shipments between China and the Middle East. The expansion to seven weekly freighter services strengthens our ability to offer reliable, time-sensitive logistics solutions across key global trade lanes.' Luo Guowei, Chairman of Hubei International Logistics Airport Co., Ltd., stated: "As the first international airlines to operate at Ezhou Airport, Etihad Airways has transported over 28,000 tons of cargo since launching the Abu Dhabi - Ezhou route. This has established an efficient two-way trade corridor spanning Asia, the Middle East, and Europe, injecting strong momentum into regional economic and trade exchanges. At this new starting point, Ezhou Airport will deepen strategic collaboration with Etihad Airways and SF Airlines. We will further increase route frequency, enhance cooperation on overseas warehouses, and jointly build efficient logistics channels connecting the world to China. This will forge new milestones in establishing an aviation trade hub for the Belt and Road Initiative." As Etihad Cargo continues to expand its global footprint, the relationship with Ezhou Huahu Airport remains a cornerstone of its Asia strategy, driving innovation, efficiency and mutual growth. The hub's advanced infrastructure, streamlined customs processes and proximity to key manufacturing centres have enabled Etihad Cargo to meet the rising demand for high-tech, automotive and e-commerce shipments. Looking ahead, Etihad Cargo will continue its presence at EHU, exploring opportunities for service enhancements and digital integration to further optimise end-to-end supply chain performance. About Etihad Cargo: Etihad Cargo is the cargo and logistics arm of Etihad Airways. Since its establishment in 2004, Etihad Cargo has grown rapidly to become one of the world's leading air cargo carriers, offering customers a range of cargo products and services to five major continents. Its hub in Abu Dhabi is strategically located at the centre of the world's busiest trade lanes, providing an integral link between Asia, Europe, North America, Australia and Africa. In addition to general cargo, Etihad Cargo offers a wide range of specialty products including live animals, dangerous goods, valuables and vulnerables, personal effects, as well as its market leading cold chain products (the latter holding IATA's stringent Centre of Excellence for Independent Validators certifications for both Pharmaceutical and Perishables Logistics, as well as Live Animals Logistics). Media Contacts: Duty Media Officer, Etihad Airways Email: dutymediaofficer@ Omnia Ebrahim, IHC E-mail: Omnia@ About Ezhou Huahu Airport Zelda Zou WEBeijingEtihad@

EAC stock markets miss out on ‘Nairobi dividend'
EAC stock markets miss out on ‘Nairobi dividend'

Zawya

timean hour ago

  • Zawya

EAC stock markets miss out on ‘Nairobi dividend'

Weak performance indicators in Kenya's economy during the first half of 2025 have eroded appetite among offshore investors on the Nairobi Securities Exchange (NSE), a development that has wiped out financial synergies generated by foreign investors seeking wider exposure across East Africa's stock markets. Whereas large, foreign investors interested in buying shares on the NSE often pursue additional equity opportunities available at the Ugandan, Rwandan and Tanzanian stock markets, tough operating conditions affecting Kenya's economy have killed investment appetite towards the latter, The EastAfrican has learnt. This trend translates into lower growth momentum in trading turnover, volumes and commission incomes earned from massive equity trades by foreign investors in neighbouring stock markets. Kenya's economy expanded by 4.9 percent during the first three months of 2025, backed by robust growth in the agriculture and financial services sector, despite a downturn in the tourism and manufacturing sectors. Overall economic growth fell from 5.7 percent in 2023 to 4.7 percent in 2024, under pressure from persistent street protests. Though Kenya's Purchasing Managers' Index (PMI) averaged 50.9 points during the first six months of 2025, it dropped to 49.6 points in May 2025, compared with 52 points in April, a sign of deteriorating conditions in the local business environment. The country's domestic borrowing target rose from Ksh887.2 billion ($6.8 billion) in financial year 2024/25 to Ksh923.2 billion ($7.1 billion) in financial year 2025/26 amidst weak tax revenue collections. Recent data compiled by Kenya's Central Securities Depository Corporation (CSDC) shows that foreign investor participation on Safaricom Kenya's counter accounted for 67.6 percent of its trading turnover during the first half of 2025. This translated into net foreign inflows amounting to Ksh415.7 million ($3.2 million) on the Safaricom counter. In comparison, foreign investor participation on the East African Breweries Limited (EABL) counter accounted for 67.8 percent of its trading turnover during the first six months of 2025. This translated into net foreign inflows of Ksh86.4 million ($666,694) on the EABL counter during the period under review. The Kenya Power and Lighting Company (KPLC) registered foreign investor participation of more than 50 percent of trading turnover generated on its counter at the NSE. This translated into net foreign inflows of Ksh120 million ($925,964) during the second quarter of 2025. Its share price rose by 39.3 percent to Ksh11.5 ($0.08) by end of June 2025, following its recovery from an eight-year loss-making cycle. Other major counters at the NSE that include listed banks suffered declines in foreign investor participation during the first six months of 2025 according to CSDC data. In comparison, foreign institutional investors accounted for 43 percent of total trading turnover recorded at the Uganda Securities Exchange (USE) during the first half of 2025 compared to foreign individuals who contributed two percent of the USE's turnover during the period under review. Local institutional investors accounted for 28 percent of the USE's turnover during the first six months of 2025. Overall trading turnover at the USE rose by 0.49 percent to Ush38.42 billion ($10.7 million) between January and June 2025 according to USE data.'There are serious macroeconomic challenges facing the Kenyan economy including currency depreciation risks. This means foreign investors participating in the Kenyan stock market are fairly constrained by tough economic fundamentals and this may discourage them from exploring neighbouring equity markets,' said Paul Bwiso, the bourse's CEO. The NSE's main stock index rose by 40.74 percent to 153.43 points by end of June 2025 while the USE's main stock index increased by 25.14 percent to 1,287.64 points during the same period under review. Large foreign investors active in the region's stock markets include pension funds, mutual funds and hedge funds managing billions of dollars in clients' money according to industry sources. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store