EAGC pursues policy reforms through its Agricultural Trade Advisory Forum for Eastern and Southern Africa (ATPAF-ESA), established in 2012 in partnership with the Food and Agriculture Organisation of the United Nations (FAO). ATPAF-ESA is thus EAGC’s trade policy and advocacy department. The Forum has four (4) main pillars:

• Improved policy monitoring
• Enhanced evidence-gathering
• Policy capacity building of stakeholders
• Enhanced public-private policy dialogue

Policy wins for the sector in 2021

1. Reducing the tax burden on grain sector enterprises in Kenya

Despite fiscal policies continuing to pose challenges for the grain sector in East Africa, EAGC succeeded in two main tax-related interventions in Kenya. In early 2021, the government shelved plans to introduce a minimum turnover tax on grain sector entities following dialogues with EAGC, the Cereal Growers Association and the Cereal Millers Association. Had it been implemented, the minimum turnover tax would have added more costs to a sector that is already overburdened with red tape and taxes.

In December 2021, EAGC further succeeded to halt the implementation of crop cess on produce delivered to grain millers in Nairobi, thus sparing the value chain from additional cost of doing business. Dialogue with the Nairobi City Country Government and the Kenya Revenue Authority will continue in 2022 to find a definitive and mutually-beneficial conclusion to the matter.

2. The 9^th African Grain Trade Summit

EAGC hosted the 9^th edition of its biennial African Grain Trade Summit on 7-9^th October 2021 in Diani, Kwale County, Kenya. Hosted during the Covid-19 pandemic, it was hosted in a hybrid module with 150 delegates attending in person while another 70 attending virtually. Its theme, “The Future of Grain Trade in Africa: Revitalizing Resilience in Grain Value Chains”, it focused on recovery of grain trade value chains following the pandemic.

The 9th AGTS was a major success, creating business opportunities worth over US$ 102 million for grain sector agribusinesses in East Africa. From a policy perspective, the Summit delivered strong recommendations to improve the business environment for grain trade. The key policy asks from grain sector stakeholders include: (1) harmonisation of Covid-19 prevention measures in the cross-border trade ecosystem to minimise costs and disruptions to businesses; (2) removing administrative barriers to trade by closer monitoring of the implementation of protocols and regulations for cross-border trade agreed at regional level; (3) building stronger relationships between government, industry and research institutions to deliver more holistic and sustainable package of solutions for the grain sector

3. Removing barriers to cross-border grain trade

In May 2021, EAGC’s policy advocacy successfully contributed to resumption of maize imports into Kenya from Tanzania and Uganda. Kenya had suspended maize imports from its neighbours 2 months prior citing high aflatoxin levels which presented food safety risks. The resumption in cross-border trade was particularly beneficial for Tanzanian grain sector agribusinesses which benefitted from a six-fold jump in maize exports to Kenya.

In addition to resolving the trade suspension, EAGC partnered with the Agriculture and Food Authority (AFA) in Kenya to host sensitisation sessions with its members to support their registration with AFA as mandated by law.

4. Exploring Industry Self-Regulation for the grain sector in East Africa

The above-mentioned trade suspension by Kenya on food safety grounds once again highlighted the sector’s weak compliance with existing standards and food safety regulations, which were developed and harmonised at the request of and in close collaboration with the private sector. These challenges further highlighted the need for the grain industry to take a more proactive approach to address food safety, to equitably share the risks and costs associated with compliance across the value chain, and create a more synergistic relationship with government regulators.

Therefore, EAGC has initiated a process to explore the feasibility of establishing an industry self-regulation framework for voluntary food safety compliance in grain value chains. Initial consultations with industry stakeholders have been very positive with industry acknowledging the need for self-regulation as a first line of defence and to level the playing field with respect to compliance with food safety requirements. In late 2021, EAGC secured a partnership with the USAID-funded PolicyLINK activity to facilitate the establishment of an appropriate self-regulation framework for the grain sector. The framework is expected to be completed in 2022.

5. Supporting warehouse receipt system implementation and reforms in Kenya, Malawi, Zimbabwe and Ghana

The Warehouse Receipts System (WRS) is a fundamental part of structured grain trade. EAGC historically supported the introduction of a private WRS scheme in Kenya in 2008, a process that has contributed to the enactment of the WRS Act in 2019 and establishment of the Warehouse Receipt System Council (WRSC) in 2020 as a body to support growth and development of the WRS. In 2021, EAGC successfully petitioned the National Assembly to secure funding the WRSC, noting that it is a critical partner in efforts to facilitate structured grain trade. EAGC further supported the WRSC to design its electronic WRS platform, training for WRSC staff, joint outreach efforts to popularise the WRS and market surveillance to establish the quality of crops earmarked for the WRS after harvest.

In Malawi, EAGC in partnership with the Ministry of Agriculture – Agricultural Commercialisation Project undertook a detailed assessment of the WRS and structured markets ecosystem and proposed detailed structural reforms to the Government of Malawi. EAGC is continuing to engage the Government to support implementation of the proposed reforms.

EAGC further partnered with the International Finance Corporation of the World Bank (IFC) to provide technical assistance for WRS implementation in Kenya, Zimbabwe and Ghana. In Kenya, EAGC undertook a baseline survey of the WRS which, among others, highlighted key investment areas for IFC to support the WRS. In Ghana, EAGC has supported the development of a warehouse certification scheme, an inter-agency quality assurance framework and training of warehouse inspectors. In Zimbabwe, EAGC has been training extension officers and initiated a warehouse audit process which is expected to be completed in 2022. EAGC’s forays into Ghana and Zimbabwe – countries outside its geographical mandate – once again highlighted that it is evolving into a continental organisation with its impact beginning to be felt in all corners of the continent.