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Category: Advocacy

Enriching Rwandan smallholder farmers as export markets expand

Faustini a father of six is a coffee farmer in Rwanda. He has been growing coffee for 20 years. He started with 200 trees he inherited from his father who was a traditional coffee smallholder. In 2005, at a time when a coffee-drinking culture was rapidly expanding across the globe, the Musassa Coffee Co-operative was formed in Ruli District - located in Rwanda’s verdant hills, a slow and steep two-hour drive from Kigali. The establishment of the cooperative represented a promise of access to markets and this encouraged Faustine to take coffee growing more seriously. He increased his trees to 1700 and over time hired extra help of 5 workers. Musassa Coffee Co-operative represents 2,000 smallholder coffee farmers, 60% of them women. The farmers take their beans to designated collection points in the district from where they are delivered to the washing station, for washing, drying and grading. Almost all Rwandan coffee is exported in the green (unroasted) state because the buyers prefer to roast it themselves, sometimes blending it with other coffee types from various origins. “My life improved very well,” he says, “before we had so many problems related to production and management of coffee trees. The co-op came with solutions in the form of efficient supply chain and now we are making more money.” Faustini has done well over the 11 years he has been part of the Musassa co-operative. While his father lived in a house made of mud, Faustini’s is brick and has electricity. His...

Body language lessons help Burundi women solve border disputes

A guide to handling problems at any international frontier might usually entail tips on how to complete a form and a reference guide to import taxes and regulations. But in Burundi, the assistance has been taken a whole lot further with a guide on how to avoid confrontational body language when women traders, the bedrock of cross border trade, deal with customs and tax officials. Laid out in cartoon-style diagrams, the guide is one of many innovative ways Search for Common Ground (SFCG), an international NGO, is helping ordinary people adapt to the realities of trade now that one of Africa’s smallest states is now a member of one of Africa’s biggest trade blocs, the East African Community (EAC). “Our aim is to help women traders improve their position in the new realities of EAC membership, and that means helping them understand today’s realities of paying taxes and duties and dealing with officials without getting into rows,” says Floride Ahintungiye, Programme Director of SFCG, “It starts with just simple things, like learning that finger pointing immediately sets your interlocutor on the defensive. It’s amazing how much progress you can make when you start off with the right attitude of working together to solve problems.” As the EAC grows and becomes more streamlined, borders become the interface not just between member states but EAC citizens, women notably, struggling to come to terms with the new realities of tariffs, duties and procedures EAC rules mandate. Signs posted along major roads in Burundi...

Helping women with small businesses to compete in the East African market

One of TradeMark Africa’s (TMA) objectives, towards its ultimate goal of reducing poverty by increasing trade in East Africa, is improved cross border processes for small traders, especially women. Empowering women in the East African Community as part of the regional integration process is essential to TMA’s goal of improving business competitiveness. Its long-term aim is, through policy change, to eliminate barriers that affect women in trade. In Uganda, TMA is contributing to this by advocating for policy change that will assist women cross border traders and by building capacity, specifically through women’s organisations. “Women need help because of their historic marginalisation”, said iCON Programme Director, Ben Matsiko Kahunga. “They need both confidence and means. If a woman is processing and packaging juice what does she need to cross borders? How does she access quality certification? How can she get advice about packaging, branding and standards?” That is a question that had never occurred to Esther Kabengano, a 37 year old mother of two, living in the Ugandan capital Kampala, where she runs a small business processing and selling fruit juice. She was just too busy trying to survive. By any standards, Kabengano’s business is small, operating from her home where she makes 10 litres of juice at a time (10 litres being the size of the container she uses to hold it) and which she sells on the streets of Kampala by the cupful. Her profit is Ush 4,000 per day - about US$1.5. The profits are not enough...

The single tourist visa – a win-win all round

East Africa as a region contains some of the world’s most celebrated tourist destinations, from the wildebeest migration through Kenya and Tanzania to the iconic gorillas of Rwanda’s Rwenzori Mountains and Uganda’s Impenetrable Forest. Combine these with the beaches of the Indian Ocean, the highest mountains and longest river in Africa, the deep lakes of the Rift Valley, and an abundance of wildlife (including nearly 2000 bird species), and you have a tourist destination made in heaven. Yet the number of visitors East Africa (Burundi, Kenya, Rwanda, Tanzania and Uganda) receives annually is a fraction of those of its competitors in Africa, such as South Africa and Morocco. Allan Ngugi of TradeMark Africa (TMA) puts much of this down to cost, including the cost of individual visas to each country. For a family of five to visit just three countries in East Africa, he noted, it would cost them about $750 in visas alone, not to mention inconvenience. Add that to the cost of flights, hotels and safaris then those tourists who want to visit more than one country in East Africa are instantly discouraged. East Africa Tourism Platform launched Realising that East Africa had to be positioned as more competitive tourist destination, especially as tourism is a key income earner,an East Africa Tourism Platform (EATP) was launched in April 2012 with the support of TradeMark Africa (TMA). Its mission is to promote intra and inter-regional tourism through advocacy, marketing, skills development, research and information sharing” and it works closely...

Rwandan truckers see Tanzanian barriers to trade reduce

Rwanda’s small trucking industry hasn’t had much to shout about recently, unless it was to complain about interminable roadside delays due to bureaucracy, corruption and paperwork. Until now. Some neat diplomatic footwork with neighbouring Tanzania has given Rwandan truckers some good news in an industry where time is money, costs are high, and margins small and the playing field tilted towards the regional giants and their huge trucking sectors. “Yes, some good news for a change,” says Theodore Murenzi, head of the Rwanda Truckers Association. “Tanzania has dropped a road toll which penalized Rwandan trucks on the central corridor. It’s not 100% good news, but it’s a real start.” A study into the competitiveness of Rwanda’s road freight industry highlighted what Rwandan truckers had long complained about – Tanzania charged Rwandan trucks a $500 transit toll yet Rwanda charged Tanzanian registered trucks only $152, putting Rwanda’s drivers at a $348 disadvantage every return trip and adding to already high costs. Such bureaucratic hurdles to free trade are known as Non Tariff Barriers (NTBs). The EAC is committed to eliminating them altogether, but the process is laborious and the barriers cemented in protectionism. “We registered this as an NTB at the level of the EAC, but the harmonization of the road toll at EAC level is not decided,” says Vincent Safari, head of the National Monitoring Committee on NTBs. “But the study was evidence-based, factual and detailed and we were confident it would succeed, somehow.” After validation of the findings of...

Improving business competitiveness through smallholder farmers in East Africa

In 1999 Jane Nazziwa moved from the capital city of Uganda, Kampala, to a small island 40 kms away, located amid the papyrus channels of Lake Victoria, and accessible only by boat. Jane went there to look after her brother’s seven young children who were AIDS orphans. Her brother had been a farmer on Bussi Island, growing crops on seven acres of land. Arriving on Bussi, Jane knew nothing about farming and spent the first couple of years learning on the job. Then, thanks to a programme run by Jali Organic Development Company, a company processing organic pineapples for export, Jane learnt that by cooperating with other farmers, she could use economies of scale and the power of bulk selling, to increase her income. Jali Organic Development Company (Jali) is run by businessman, Ephraim Muanga. Knowing that Uganda’s pineapples were renowned for their sweetness, he committed to buying pineapples from Bussi Island smallholders. The only problem was getting the pineapples to the market. Taking them by canoe to the mainland was a time consuming process and, because he was buying in bulk, not practical. Getting farmers to the market Muanga connected with NOGAMU (National Organic Agricultural Movement of Uganda), an umbrella organisation of farmers, processors, exporters and others, with over a million smallholders in its network. NOGAMU’s main objective is to link growers with buyers. In doing this, it offers research and extension services, helps farmers to get appropriate export certification and advocates for an enabling environment for farmers. NOGAMU...

Licking poverty in East Africa – the lollipop example

Whenever I talk or write about East African integration I use this picture of three boys sharing a lollipop. I don’t know where the photo came from or who the boys are, but I do know that it speaks volumes about the way trade could lift millions out of poverty. These three little boys in Kigali are sharing a lollipop. They lick it in turns. The lollipop is imported, so 45% of its cost is due to transport and allied costs. It might have been made in Kenya or Tanzania or even further afield, and it has travelled thousands of kilometres and several borders. So whichever of the boys bought that treat, he’s paying part of the freight clearance charges, handling charges, insurance, fuel costs and the salary of the trucker who got it to the Rwandan capital. It’s no wonder that the boys cannot afford to buy their own lollipops but have to share one. Transport costs in East Africa are among the highest in the world. This is largely due to infrastructure and regulatory constraints but the major reasons for the high costs are policy, legal and regulatory constraints, not infrastructure. It’s not only the slow ports or bad roads that up the price, its old policy and legal habits and slow border crossings. It takes 28 days and $600 to move a 40-foot container from the port of Shanghai, China to Mombasa, Kenya. It can take almost the same amount of time for the same container to...

East Africa on verge of single tourist visa after 10-year wait

Nairobi – After 10 years of stop-go discussions, three East African states are on the verge of launching a single tourist visa to ease the path of visitors across national borders and make it easier for the tourism industry to offer multi-destination packages. “It’s taken a while. There were concerns about how to split the revenue, about possibly losing money and about screening visitors, but Rwanda, Uganda and Kenya have seen that the advantages far outweigh the disadvantages,” said Waturi Matu, coordinator (Kenya) of the East African Tourism Platform. Moves to facilitate tourists across East African Community borders was given fresh impetus in June when the presidents of Kenya, Uganda and Rwanda met and agreed to strengthen integration and cooperation to spur the growth of trade. “Rwanda will be in charge of designing the visa, and the plan is to have it launched in January next year with Tanzania and Burundi free to join at any time,” she said. Long a lobbying goal of East Africa’s tourism industry, the single visa will enable a tourist to buy a visa for the three countries for $100 instead of three visas for $150. The savings for couples and couples with children, the main tourism unit, is therefore substantial. “Tourism is a key source of income for the East African Community and we support the East African Tourism Platform precisely so it can lobby to make the borders between members states ‘thinner’ and less bureaucratic,” said Frank Matsaert, CEO of TradeMark Africa. The...

East African farmers go back to school to learn how to grow cash

MWEA, Kenya – It’s the end of term school prize-giving day and the atmosphere is expectant and excited. One by one the pupils’ names is announced. They walk out in their best clothes to get their certificates, a handshake and a warm round of applause. It’s a typical scene. Except that these pupils are mostly middle-aged farmers, both men and women, whose livelihoods depend on them putting lessons learned into practice and growing crops according to the standards of the Good Agricultural Practice Code (GAP). “Smallholder farmers hold the solution to hunger and poverty in rural areas,” says Napthaly Kariuki of the Horticultural Produce Marketing Association of Kenya (HPMAK). “To get accepted in international markets, both the European Union (EU) and East African, you need to grow according to the best practice, and that means GAP." There are about 250 certificates awaiting distribution on the desk set up by the Fresh Produce Exporters Association of Kenya (FPEAK), which is spearheading the campaign to help farmers across the East African Community (EAC) grow food for tables in EU states and in neighbouring countries. “I am so happy today. I have learned things that will help me make my shamba (smallholding) grow better produce to sell for me and my family. This is like getting a prize at school,” said Grace Wambui, who grows beans and tomatoes nearby. “Growing fresh produce employs about one million people in Kenya, and it’s one of the top three export earners. Smallholders account for about 70...

A Tanzanian Designed Scheme to Topple Trade Hurdles With Cell Phones up for World Trade “OSCAR”

Few parts of the world have pioneered the cell phone with such ingenuity as East Africa. You can pay bills with it, check crop weather with it and, when you’re not checking your bank balance, talk to your auntie in Kisangani or Kigali or Kericho. But now, for the first time in East Africa, the humble cell phone is being used as a beacon to champion free, smoother and cheaper trade across the region by naming and shaming unnecessary or duplicated barriers to the free movement of goods. The short messaging system (SMS) online non-tariff barrier (NTB) reporting and monitoring mechanism, was developed by the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) to get the business community not just to grumble about NTBs but to log them, report them and get them referred to those with the power to overturn them. Such is the beauty of the system that it has been nominated for the award of Best Project of the Year by the International Chambers of Commerce and World Chambers Federation, a grouping of senior business, trade and commerce experts. “It is a great pleasure to see that the in house innovation can stretch its wings to the international community. The recognition that the NTBs SMS and online reporting and monitoring system has received through its nomination in the finals, is an evidence that what we do as a private sector in creating favorable business environment adds value to the lives of people; not only because the world...