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Category: Improved Business Competitiveness

Improving Rice Exports to the EAC Region

It was the launching of the modern Ipatagwa irrigation scheme in 1999 that spurred Jeremiah Mwasanyila to go into rice farming in 2000.  He had two acres of land on which he was growing assorted vegetables but decided to devote it all to rice instead. His first harvest later that year yielded 16 bags and he felt he could keep at it. Later, in 2006, when Mwasanyila and fellow villagers around Ipatagwa, were introduced to the idea of using fertilizer to improve their yields, he collected 24 bags from the same plot. In 2013, with a total of five acres under rice cultivation, Mwasanyila was expecting a yield of 70 bags from that year’s harvest. “But in the end I got only 48 bags,” he says. “The fertilizer brand that I bought turned out to be fake and it caused me a lot of problems.” However, as the harvest season got underway in June, Mwasanyila and many of his peers soon realized all was not well. Not only was the buyer traffic into Ilongo lighter than usual, but also the few buyers arriving were not offering attractive prices. “Where are all the buyers, everyone was wondering,” says Mwasanyila. “The few we got were offering as little as Sh60,000 for a 150kg bag and they wouldn’t budge. At such a price it’s as if you worked for nothing, but you are also under pressure to settle your debts now that you have harvested. I opted to try looking for my own...

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...

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...

New breed of freight professionals spur trade

An innovative training program for clearing agents is growing a new breed of professionals to spur trade and prosperity in East Africa. “Where you see trade grow you see prosperity take root. By training the key people in the freight forwarding business, we are helping move goods quicker, save time and money and help the region develop” said Silas Kanamugire of TradeMark Africa (TMA). Run by the East Africa regional freight forwarding governing body (FEAFFA), the program is quickly churning out a fresh generation of professionally trained freight forwarders to quickly expand the ever-growing potential for trade within the East African region. With TradeMark Africa (TMA)’s support, FEAFFA aims to transform the job of freight clearing and forwarding into a recognized profession and to standardize and regulate this key position to streamline the process of doing business in the five-nation bloc. “My clients are now satisfied with the fast clearance of their goods. We are now not seen as unreliable or barriers to the trade process, but rather partners who can help grow the prosperity of this region”, Said Xavery Komba, CEO of Victorius Tanzania Ltd, one of the trained agents. “With more than 40% of business costs accruing to transport and logistics, there is increasing appreciation of the importance of the sector in international trade. I am pleased this program will raise professional standards in the industry with the aim of increasing trade and prosperity in the region,” said the Federation’s Regional Executive Officer, John Mathenge. Up until recently,...

Trademark East Africa plays cupid between Rwandan firms and Ugandan markets

It’s the same formula that dating agencies use: bring suitors in search of partners together with partners thinking about suitors. Contrive series of intensive get-togethers and exchanges of information. Sprinkle lightly with expectation and good wishes. Stand back and wait to see what happens. But in this version of the story the suitors are Rwandan companies looking for markets in Uganda. And the Matchmaker is the Rwandan Development Board (RDB) with help from TradeMark Africa (TMA) and the Irish government NGO Traidlinks. Rwanda imports three times as much as it exports. Its private sector, government and backers fear that the country might get economically swamped by the more modernized Partner States like Kenya when all tariff barriers eventually come down in the creation of an economically integrated zone. “Imports don’t make us rich! We have to look at new products and new markets. We need to diversify. We need to look beyond traditional markets. And most of all, we need to think differently,” says Kaliza Karuetwa, Director-General of Trade at the Rwandan Ministry of Commerce. The RDB, Traidlinks and TradeMark Africa (TMA) all wanted to help Rwandan companies think differently and put together an intensive programme for a small group of Rwandan CEOs or top management officials to go to Kampala to try to find customers. Why Uganda? Why not a less economically daunting prospect than its oil-rich neighbour? Why not Burundi, or the Democratic Republic of Congo? “We already do sell to both countries but it’s more re-sale of...

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...