Public and private sectors of the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) have joined forces to boost horticulture trade to USD25 million by 2031.
Under the COMESA-EAC Horticulture Accelerator (CEHA) which was established in 2022 through public and private sector partnerships, and launched in June 2023, the trading blocs have marshaled plan to fast-track growth of the industry, beginning with avocado, onion and Irish potato value chains.
According to CEHA Coordinator, Mr Apollo Owuor, the primary objectives of CEHA are multifaceted, with an overarching goal of achieving a trade value of USD 25 million for fruits and vegetables within the Comesa-EAC region by 2031.
“Avocado, onion, and Irish potato can generate a combined 230 million US dollars per year for approximately 450,000 smallholder farmers of a minimum farm size of 0.4 hectare with 60 avocado trees, or 1 hectare for onion farmers,” said Owuor.
Furthermore, the initiative aims to catapult global exports from USD 416 million to an impressive USD 950 million by the same year.
The project covers five countries in the Common Market for Eastern and Southern Africa – COMESA and the East African Community – EAC. These are Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
Project implementation
Early this month, the trading blocs announced that the implementation of the project has begun and is expected to enhance policy coordination, value chain development, financing, and research and development in the horticulture industry.
The idea is to harmonise Comesa-EAC fragmented regulatory and standard policies, coordinate production chain, address poor storage and transportation snags for perishable crops and ensure availability of quality and sufficient seeds.
“For instance, some ports within the EAC that serve the rest of landlinked countries lack what we call green lanes to fast-track clearance of perishable goods to the overseas markets, so CEHA seeks to tackle such a challenge,” said Owuor.
The projected scenario anticipates a doubling of the volume of preserved or processed fruits and vegetables from 8 per cent in 2021 to 16 per cent by 2031.
During this period, the duration from farm to market is predicted to decrease by 50 per cent, while farm gate prices are expected to decrease by 25 per cent.
Presently valued at 4 billion US dollars, high-value fruits and vegetables consistently outperform cereals and other conventional staple crops in terms of profitability. Moreover, the demand for these products continues to surge in both domestic and export markets.
Support to farmers and processors
Under the auspices of CEHA, farmers and processors will have access to sufficient and affordable financing, and five trade-related barriers will be eliminated.
“This initiative aims to elevate the value of fresh and processed horticultural products to 500 million US dollars, consequently generating an additional 100,000 jobs across the value chains.”
Simultaneously, efforts to reduce post-harvest losses are underway, targeting a reduction from the current 40 percent to half that figure.
Forecasts indicate a 4 per cent and 3 per cent increase in yields for fruits and vegetables, respectively, while labor productivity is projected to improve by 25 per cent.
Climate-smart practices
To sustain profitability, farmers are expected to embrace climate-smart practices, such as cultivating crops resilient to anticipated shifts in local weather patterns.
“Our aim is not only to boost trade but also to uplift the livelihoods of smallholder farmers across the Comesa-EAC region,” said Owuor.
These developments are being spearheaded by officials at CEHA’s headquarters in Lusaka, Zambia.
Building the capacity of the horticultural industry across Eastern and Southern Africa is in the 2021-2031 Strategic Plan of the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA), a specialised agency of COMESA tasked to integrate smallholder farmers into domestic, regional, and international markets. On its part, the EAC also prioritises the potential for horticulture in its Fruit and Vegetable Strategy 2021- 2031.
The East African Community (EAC) Secretariat, through its Secretary-General, Hon. Dr. Peter M. Mathuki has endorsed its commitment and support to the COMESA EAC Horticultural Accelerator (CEHA) program. This was revealed when the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA), Chief Executive Officer, Dr. John Mukuka, and CEHA staff paid a courtesy call on the EAC Secretariat on 25th January 2024.
In his remarks, Hon. Dr. Peter M. Mathuki, recognized the potential impact of the CEHA initiative on the horticulture sector focusing on agricultural development to enhance household food and nutritional security.
The engaging and fruitful discussions were aimed at formalizing collaboration and partnerships toward effective implementation of the CEHA program.
And EAC Deputy Secretary-General of Infrastructure, Productive, Social and Political Sectors, Hon. Andrea Aguer Ariik Maleah, reiterated EAC’s active participation and commitment to provide continued support to CEHA structures both at the national and regional levels.
The EAC leadership further expressed interest in aligning regional efforts and initiatives towards addressing critical issues in the horticulture sector, for increased incomes and employment opportunities, across the COMESA and EAC regions.The meeting unpacked crucial and actionable outcomes, with a spotlight on the EAC assuming the co-chairing responsibilities within the CEHA Board.
The EAC further placed paramount importance within CEHA, on advancing climate change mitigation and adaptation strategies, alongside bolstering efforts to ensure food security within the region. Other highlights of the meeting reflected the importance of establishing a formal communication channel and signing a Memorandum of Understanding (MoU) between the two parties for efficient management of project activities. Meanwhile, CEHA Co-ordinator, Mr. Apollo Owuor, remarked that the partnership between EAC and COMESA is crucial in advancing the CEHA’s aspirations of accelerating the growth of the fruit and vegetable subsector of the COMESA and EAC regions. “We are elated with the positive response from EAC, recognizing that CEHA is a transformative initiative that will ultimately lead to enhanced climate-smart horticultural productivity, value chain development, and economic empowerment in the COMESA and EAC regions” he stated.
Mr. Aime Uwase, EAC Director of Planning, and Mr. John Patrick Mwesigye of the GFA/GIZ were in attendance at the meeting. Others included: ACTESA CEO, Dr. John Mukuka, Mr. Apollo Owuor, CEHA Regional Coordinator, and Ms. Fungwa Kabati, ACTESA Finance and Planning Officer.
BACKGROUND INFORMATION
The Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA), a Specialized Agency of COMESA has since been co-ordinating the COMESA-EAC Horticulture Accelerator (CEHA) following its regional Launch in June 2023. The CEHA was created in 2022 through public and private sector partnerships in better coordination of policy, value chain development programs, financing, Research, and Development (R&D) of the horticulture industry as is also reflected in the EAC’s Fruit and Vegetable Strategy 2021-2031. The initial activities of CEHA are supported by the Bill and Melinda Gates Foundation (BMGF), with a total budget of USD5 million, and the Foreign, Commonwealth & Development Office (FCDO) providing a total of GBP500,000.
The CEHA currently focuses on Ethiopia, Kenya, Rwanda, Tanzania, and Uganda on three horticultural crops, namely avocado, onion, and Irish Potatoes. The CEHA Secretariat will facilitate the modernization of regional horticulture value chains across East Africa, leveraging the comparative advantage, infrastructure, and technology in each country by:
The CEHA Board comprises COMESA as Chair with EAC as vice and or co-Chair with private sector membership of TWIGA Foods, Ethiopian Horticulture Producer Exporters Association (EHPEA), World Vegetable Centre, Tanzania Horticulture Association (TAHA), Horticulture Association of Uganda (HORTEXA), Trade Mark East Africa, Arch Emerging Markets Partners Ltd. CEHA Development Partners/donor members includes B&MGF, FCDO, United States Agency for International Development (USAID), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Netherland Government through Stichting Nederlandse Vrijwilligers (SNV) and European Union. Observers include the Japan International Cooperation Agency (JICA), Partners in Food Solutions (PFS), and World Bank.