In a significant stride toward enhancing food security in the East African region, the East African Business Council (EABC), in collaboration with TAHA and GIZ Sequa GmbH through the Business Scouts Fund, has successfully strengthened 35 agri-businesses in contract farming. This endeavor is part of the larger EABC-GIZ Sequa GmbH project, titled “Enhancing Competitiveness of the Agri-food Industry and Mitigating the Impact of Global Crises to Improve Food Security in the EAC.”
During the inaugural session of the workshop, Mr. Frank Dafa, EABC Manager of Policy and Standards, highlighted the disruptive impact of global crises, including COVID-19, Climate Change, and geopolitical conflicts like the Russia-Ukraine conflict, on global supply chains. These disruptions, particularly affecting Africa as a net cereal food importer, have heightened concerns about food security in the region.
Mr. Dafa underscored the potential of the East African Community (EAC) to produce various agricultural products, including wheat grain, edible oil, leguminous plants, root tubers, and fertilizer. He discussed the EABC-GIZ Business Scouts study on Investment Opportunities in the EAC Agriculture Value Chain, emphasizing the importance of enhancing skills and capacity among agri-actors in contract farming and EAC export procedures. The primary objective is to increase agricultural productivity and market access.
Contract farming, a pivotal component of this initiative, offers a multitude of advantages such as expanded market access, improved production practices, risk-sharing mechanisms, and income stability for farmers. Ms. Martha Ndelekwa, Chairperson of an Arusha-based women farmers group, expressed optimism about the contract farming training, believing it would empower her group to negotiate fair and mutually beneficial contracts with green pea buyers.
The capacity-building workshop equipped agri-actors, including farmers, processors, and buyers, with essential knowledge and skills for effective engagement in contract farming. Key topics covered included equitable contract negotiations, understanding the rights and responsibilities of each party, quality control management, pricing mechanisms, and dispute resolution.
While the EAC economies demonstrate significant potential in agricultural sectors such as animal and animal products, dairy products, cereals, and food preparations, challenges persist. The EAC Aggregated Agricultural Intra-Industry Trade index declined from 0.92 in 2021 to 0.52 in 2022, primarily due to a decrease in the trade of grains, oilseeds, fats, and oils caused by global shocks. Initiatives like the EABC-GIZ Sequa GmbH project play a crucial role in strengthening the agricultural landscape, ensuring sustainable growth, and bolstering food security across the East African region.