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Argent ChuulaChief Executive Officer-COMESA/ACTESA

NEW OPPORTUNITIES IN REGIONAL TRADE

Catalyzing the African Green Revolution!

THE CHALLENGE

COMESA-ACTESA

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Eastern Africa Southern Africa Western Africa Eastern Asia Southern Asia South-Eastern Asia

Yiel

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Poor Soils, Seed & Farm Management - Low productivity

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THE 1/3 DIMENSION/PRINCIPLE

Food Security

Seed Trade System

Fertilizer Trade System

Agronomic/Technical Practices

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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

PRODUCT- VERY LOW

PROMOTE- NOTHING TO PROMOTE

PRICE- NOTHING TO COST

PLACE/LOGISTIC- NOTHING TO MOVE

COMESA-ACTESA

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Fertilizer/Seed Distribution Channels in Africa

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Fertilizer and Seed deficits in COMESA Countries: Opportunity

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+

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

 

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

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Role of Public sector

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?

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Years to success

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How does A-Trade fit in with AFAP & ESAF?

AFAP/ESAF

Fertiliser manufacturerBanking institution

Platform users place their orders

Order (already bulked) is confirmed by A-Trade for banks to pay winning manufacturer providing the consignmentBanks 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 assuranceexercise

Quality assurance reports

A-Trade management

Trading commission (0.25%)

• Quality fertiliser delivered

• Training

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A

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AOngoing 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?

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

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 LeadCOMESA Seed

Committee

OVERALL GOAL

END HUNGER

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

Thank You! Merci!