The East African Community (EAC) is a huge market for not just Uganda’s exports, but also member countries in the region and beyond.
The EAC emerged as the biggest destination of Uganda’s exports, accounting for 32.5% of the total exports in June 2024. Within the bloc, Kenya, Democratic Republic of Congo (DRC) and South Sudan were the top recipients, accounting for 30.0%, 28.1% and 21.8% of Uganda’s exports to the region, respectively.
According to the Finance Ministry’s performance of the economy report for July 2024, Uganda traded at a surplus of USD 45.26 million with the rest of the EAC Partner States in June 2024 – a shift from the deficit of USD 72.20 million registered the previous month. This was majorly on account of a substantial decline in the imports from Tanzania, which dropped by 56.8% from USD 236.12 million to USD 101.90 million in June 2024.
On a country-specific level, Uganda traded at surpluses of USD 61.85 million, USD 48.47 million, USD 25.94 million and USD 8.61 million with DRC, South Sudan, Rwanda and Burundi, respectively.
However, trade deficits were recorded with Tanzania and Kenya, amounting to USD 90.44 million and USD 9.17 million, respectively.
Comparison with the same month last year showed that exports to the EAC increased by 9.7% from USD 213.02 million in June 2023 to USD 233.61 million in June 2024. Conversely, imports from the region decreased by 22.1% from USD 241.80 million to USD 188.35 million over the same period.
Despite this tremendous milestone registered, the issue of quality of exports is slowly hindering trade in the EAC bloc.
One specific category of exports that is threatening this trade is food commodities.
This is because food safety is a critical public health issue in Africa, significantly affecting agricultural competitiveness and trade. According to the World Health Organization (WHO), foodborne diseases cause 137,000 deaths and 91 million illnesses annually in Africa, accounting for one-third of the global burden. Children under 5 years of age carry 40% of the foodborne disease burden, with 125 000 deaths every year
Unsafe food exacerbates malnutrition, particularly among vulnerable populations, and persistent food safety challenges hinder the economic potential of Africa’s agri-food sector. The World Bank estimates that in 2016, food safety issues cost developing countries up to USD 110 billion in lost productivity and medical expenses, with Africa alone losing USD 16.7 billion annually.
In May last year, over 90 Ugandan registered trucks transporting maize flour and other products were held by South Sudan Bureau of Standards in an isolated parking, 7kms into South Sudan and on their way to Juba from Nimule.
The South Sudan government said that the trucks had been impounded for carrying aflatoxin affected maize flour which is not fit for human consumption.
Samples that were conducted by Uganda National Bureau of Standards (UNBS) and witnessed by experts from the East African Community (EAC) Secretariat on 23 trucks carrying 27 assorted consignments which included maize grain, milled maize (corn), dry beans, sorghum grains, cassava flour and finger millet grains showed that indeed the commodities were contaminated with aflatoxins.
“Four out of eight consignments of maize grains failed with the highest levels of Aflatoxin which exceed the regulatory limits. One out of twelve consignments of maize flour failed the aflatoxin test. Therefore, any commodities found on the market which do not conform to the required quality standards will be seized and destroyed by UNBS. The Bureau together with other regulatory agencies will intensify monitoring of exports at the exit points to ensure that they conform to the required quality standards before leaving the country,” the report produced by UNBS after the test reads.
The Food and Agriculture Organization of the United Nations (FAO), with funding from the African Development Bank (AfDB) has launched a four-year food safety project aimed at improving food safety standards in the East African region.
The Regional Strengthening of Food Safety Standards for Trade and Public Health Promotion Project will be implemented in Kenya, Rwanda, South Sudan, Tanzania, and Uganda.
The project aims to: develop the capacities of national food safety authorities for systematic monitoring of the quality and standards of domestic and imported food items; promote food safety protocols and harmonization across the region in furtherance of boosting regional/cross-border trade and the removal of unnecessary trade barriers in support of the operationalization of the AfCFTA; and develop the capacity of existing Bank funded projects and value actors on food safety and standardization certification programs to enhance productivity, local processing and market competitiveness.
During the project implementation, regulatory institutions that are part of the food safety ecosystem, laboratories and other stakeholders will be provided with technical support to perfectly execute their mandate to ensure production, distribution and sale of commodities safe for human consumption.
The FAO sub regional coordinator for East Africa, Farayi Zamudzi says food safety is a fundamental issue because unsafe products not only pose health risks but are also ineligible for export.
“The idea is to strengthen national systems for food safety. The question might be, why food safety? Why are we focusing on that? Food safety is a fundamental issue, because, according to us (FAO), if food is not safe, then we cannot really consider it food, because it will make people sick. They are ingesting things that are not healthy. Secondly, it also has a very strong impact on trade. So, if you are going to trade in food commodities that are unsafe, that have pathogens, that have not been processed correctly, then it means your goods or your commodities are going to be rejected by the receiving countries. So that’s why it’s fundamentally important, both from a human health, food security point of view, but also from an economic point of view, because then it means the countries in the region will not be able to gain the the revenue from trade that they could otherwise gain,” says Farayi.
She adds that the challenge of unsafe food production is across the entire value chain for agricultural commodities.
“From production, the way we handle the food, the commodities after they have been produced, there are also issues around the way we process, there are issues around the way we package and distribute those commodities, even internally, but also for trade. So, we are looking at the entire value chain. We need to focus on ensuring that food is safe and it’s also conserved.”
The Commissioner Animal Health in the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), Dr. Anna Rose Ademun said the promotion of food safety protocols and standards as outlined in the project objectives will promote export of agricultural products.
“How can we not be the biggest beneficiaries because after setting up the food and agriculture authority, we will require standard protocols for managing all the activities; from production of livestock, crop and fish, their standards, the processing, and we hope that this will promote trade of our products,” she said.
She added that food safety standards across the region will be harmonized which will eliminate trade barriers.
“We will be having harmonized protocols so that if something is tested in Uganda, it can be exported to Tanzania without being retested.”
The Assistant Commissioner for Agricultural Extension Coordination at Ministry of Agriculture, Animal Industry and Fisheries, Dr Patience Rwamigisa who represented the minister of agriculture, said the project is a testament to the commitment to both the Food and Agriculture Organization and the government of Uganda implementing Uganda’s food systems pathway.
“It marks a significant step towards actualizing the game changers identified through the food systems strategic analysis and the strategic goals of the National Development Plan. I am optimistic that this project will significantly support our ongoing effort, establishes the Food and Agricultural Regulatory Authority,” said Rwamigisa.
