East Africa more prone to hunger, business community calls for response plan

This was during a dialogue, yesterday May 19, 2023, organised by the East African Business Council in partnership with Sequa GmbH under the Business Scouts Fund. The dialogue was looking at the impact of global crises on food security in the EAC and the launch of the Project on Enhancing Competitiveness of Agri-Food Industry and Mitigating the Impact of Global Crises to Improve Food Security in the EAC.

The event was attended by policy decision-makers and 60 agriculture value chain actors to validate the study on the impact of global crises on food security in the EAC conducted by the East African Business Council (EABC) in partnership with GIZ Business Scouts for Development.

John Bosco Kalisa, the EABC Chief Executive Officer said that under the project, EABC would conduct training on agricultural topics ranging from sustainable supply chains, smart agriculture, contract farming, and export procedures to empower agriculture value chain actors, including women, youth, farmers, and Small and Medium-sized Enterprises (SMEs).

The study results

The study shows that despite the good environment, rain, and fertile soils in most parts, the EAC faces challenges of food security, with Partner States as net food importers.

The food production index for the EAC region is still low, and the bloc experienced low food production levels between 2014-2017.

The region’s staple food products are mainly cereals, such as maize, rice, and sorghum, which have a high import dependency ratio.

Prior to the COVID-19 pandemic, only Kenya had a score above average in the Global Food Security Index (GFSI), followed closely by Rwanda and Uganda.

At the height of the pandemic in 2020, only Burundi and the Democratic Republic of Congo (DRC) improved their scores, with 37 and 40.7, respectively.

There was a consistent improvement in Uganda, Rwanda, and Tanzania’s GFSI scores from 2021 through 2022, indicating quick adaptability to the pandemic.

“The global crises, such as COVID-19 and the war in Ukraine, have led to volatile global and regional food prices, which have impacted food security. On the positive side, the EAC countries have shown quick adaptability to the pandemic, with some countries improving their Global Food Security Index (GFSI) scores,” said Kalisa.

The Head of the International Component, GIZ Business Scouts for Development, Philipp Glaeser pledged that they will get contributions from German Private Sector agencies to support sustainable policies. These include the Federation of German Food and Drink Industries (BVE), the Federation of German Industries (BDI), and the German Organic Food Production Alliance (BOELW).

“We will have sectoral exchanges and know-how transfer that will contribute towards sustainable supply chain while repositioning and strengthening the competitiveness of agri-food in East Africa particularly MSMEs,” said Philipp.

The study notes that the disasters happening in the region are scattered thus creating opportunities for those countries that are not receiving the worst of them.

“The severity of the challenges does not cut across the whole region, creating opportunities for food production and trade in the region,” the study report says.

Challenges

The study cited the disruptions in the food supply chain caused by the Russia-Ukraine war, which has had a significant effect on the EAC’s food security, leading to increased food inflation.
The disruptions from the war have been made worse by export bans and the imposition of export taxes making prices mainly of high-energy food out of reach, especially for the poor.
However, export restrictions have usually targeted staple foods that account for the food security of a country.
The EAC’s staple food products are mainly cereals, such as maize, rice, and sorghum, and cassava, beans, vegetables, sugar, wheat, millet, and pulses. As of December 2021, East African countries recorded a total trade of $182.6 million in cereals.
The share of the total cost of staple food in a healthy diet is, on average, 15 per cent of the total cost of food.
The partner states were also faulted for maintaining non-tariff barriers that block the movement of food across borders, especially claiming poor standards.

Proposed solutions

The discussions during the dialogue recommended that the EAC adopt facilitative regional trade frameworks that would ensure increased investment in local food production, diversifying food crops, and improving intra-industry trade of cereals, food preparations, and animal dairy products.
There were also discussions of improving food value chains to reduce food waste and increase access to nutritious food, strengthening social safety nets to support vulnerable populations.
To address the inflation and affordability of healthy diets, the discussions proposed implementing policies that increase incomes, among others.
To address claims of poor standards, the participants urged partner states to ensure that standards are harmonised across the region by adopting standard testing and inspection procedures.