The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .

1. Argent Chuula
Chief Executive Officer-COMESA/ACTESA
1

2. THE CHALLENGE
COMESA-ACTESA

3. 3
0
1
2
3
4
5
6
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Yield(t/ha)
Eastern Africa Southern Africa Western Africa
Eastern Asia Southern Asia South-Eastern Asia
Poor Soils, Seed & Farm
Management - Low productivity

4. THE 1/3 DIMENSION/PRINCIPLE
1
4
Food Security
Seed Trade System
Fertilizer Trade
System
Agronomic/Technical
Practices

5. Challenges/Opportunities
 The Circular relationship between Poverty,
low crop production and productivity, Food
Insecurity and hunger is increasingly
being understood
Poverty leads to Low investment in
agriculture, leading to low
production/productivity which leads Food
insecurity leading to hunger
History shows that no country or region in the
world achieved Food Security without a
functioning seed and Fertilizer Trade regimes
 Effective and efficient use of quality Seed,
fertilizers and technology is necessity to
trigger an African Green Revolution
where
 TRADE IS THE DRIVER
5

6. PRODUCT- VERY LOW
PROMOTE- NOTHING TO PROMOTE
PRICE- NOTHING TO COST
PLACE/LOGISTIC- NOTHING TO MOVE
COMESA-ACTESA

7. Fertilizer/Seed Distribution Channels in
Africa
1
7

8. Fertilizer and Seed deficits in COMESA
Countries: Opportunity
8
Country Required (Tons) Actual/Current
(Tons)
Market
Opportunity (Tons)
SEED Congo DR 2,500,000 500,000 2,000,000+
FERTILIZER 12,000,000 5,000,000 7,000,000+

9. HARDWARE PILLARS
9
 TRADE FACILITATION: Policy, regulatory and legal frameworks
• Seed Policy and implementation plan: Regulations Gazetted
• Fertilizer Policy and implementation Plan
• Biotechnology policy and implementation Plan
 RELEVANT INFRASTRUCTURE: logistical, operational, communication etc.
 INDUSTRIALISATION –Agro Allied Industrialization to add value to agro
produce. Thus create pulling demand for agro production

10. Role of the Public Sector in cross boarder initiatives?
 Provide public goods for
which there are limited profit
incentives for the private
sector:
 Roads, rails, and port
 Research, development,
and extension
 Security
 Rule of law
 Public/PPP Financing:
through taxes, government
borrowing, etc…
 Remove TBs/NTBs: Trade
restrictions can cost countries
substantial foreign exchange
and tax revenue
10

11. Role of Public sector


12. AFAP & ESAF TRADE “A–TRADE”
AFAP regional & national policy initiatives/programmes design and implementation
A-Trade: For agri-business hubs, dealers and fertilizer manufacturers to trade
fertilizer
• Design a mechanism to allow agri-business hubs and dealers access to information
about reputable suppliers/guarantees
• Allow these agri-business hubs and dealers to place orders through collective
mechanisms (bulking orders)
AFAP will perform verification exercises which are recorded and reported on the
platform. Guarantees and APCs are also negotiated by AFAP
• Large farmer associations or groups (e.g. KTDA) can place RFPs and allow global
and regional players to respond
• Global fertilizer companies can access the market for fertilizer (tightening illegal and
illicit trade)
Reaching consensus, creating agreements and finding policy congruency in order for
regional and national bodies to implement the same agreed policy & regulations in their
own countries
WHAT AFAP IS CURRENTLY FOCUSED ON THROUGH
ESAF?
“A-TRADE” AS A MARKET MECHANISM TO GROW
FERTILIZER TRADE IN EAST AND SOUTHERN
AFRICA?
3
to
5
Years to
success
1
to
2
How does
A-Trade
fit in with
AFAP &
ESAF?

13. AFAP/ESAF
Fertiliser manufacturer
Banking
institution
Platform users
place their
orders
Order (already bulked)
is confirmed by A-
Trade for banks to pay
winning manufacturer
providing the
consignment
Banks make single payment or provides LCs
A-Trade bulks
orders and
tenders (only to
A-Trade
manufacturers)
to achieve best
price
Order is fulfilled and
delivered, in the
process tracked by
A-Trade
Quality
assurance
exercise
Quality assurance
reports
A-Trade management
Trading commission
(0.25%)
• Quality
fertiliser
delivered
• Training
1
2
3
4
5
6
A
A
A
A Ongoing and continuous process # Step by step processes
Trade Platform (“A-Trade”)
(Platform crowds orders, looks for cheapest but quality assured suppliers)
Fertilizer hub agro-dealer
wholesalers and importers
How
A-Trade
works?

14. COMESA SEED PROGRAM:
COMSHIP CURRENT STATUS 1
• COMSHIP launched in 13 COMESA Member States, now remaining with
Comoros, Seychelles, Eritrea, Mauritius, Djibouti, South Sudan
• Rwanda was first country to align to COMESA Seed System in March, 2016 with
aligned regulations ready awaiting approval for DR Congo, Burundi, Uganda,
Kenya, Malawi, Zambia and Zimbabwe.
• On awareness creation, over 10,000 COMESA Seed Trade Harmonisation
Regulations and 3,000 printed and distributed

15. COMESA SEED PROGRAM: CURRENT STATUS 2
• A comprehensive COMESA Seed Training programme developed and to be
implemented soon
• COMESA Variety Catalogue on-line, seed companies are requested to
register their regional varieties and ACTESA is looking forward to testing the
COMESA Seed System
• Three COMSHIP committees in place and operational, namely Seed Advisory
Committee, COMESA Seed Committee and Seed Technical Working Group
• First COMSHIP Mutual Accountability Meeting held in February, 2016, now
aiming to develop the mutual accountability framework in close collaboration
with Africa Lead
COMESA Seed Committee

16. OVERALL GOAL
END HUNGER

17. “Lets unblock these trade bottle necks to
allow Africa to do Business freely“

18. Thank You! Merci!