NEW OPPORTUNITIES IN REGIONAL TRADE Catalyzing the African Green Revolution! Argent Chuula Chief Executive Officer-COMESA/ACTESA

ThE CHALLENGE COMESA-ACTESA

Poor Soils, Seed & Farm Management - Low productivity

THE 1/3 DIMENSION/PRINCIPLE Food Security Seed Trade System Fertilizer Trade System Agronomic/Technical Practices 1

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

Fertilizer/Seed Distribution Channels in Africa 1

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 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

Role of Public sector

AFAP & ESAF Trade “A–Trade” Years to success WHAT AFAP IS CURRENTLY FOCUSED ON THROUGH ESAF? 3 to 5 AFAP regional & national policy initiatives/programmes design and implementation How does A-Trade fit in with AFAP & ESAF? 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 “A-TRADE” AS A MARKET MECHANISM TO GROW FERTILIZER TRADE IN EAST AND SOUTHERN AFRICA? 1 to 2 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)

Trade Platform (“A-Trade”) Fertilizer hub agro-dealer wholesalers and importers AFAP/ESAF How A-Trade works? 1 Quality fertiliser delivered Training Quality assurance reports A Platform users place their orders 6 A Trading commission (0.25%) A-Trade management Trade Platform (“A-Trade”) (Platform crowds orders, looks for cheapest but quality assured suppliers) 3 A-Trade bulks orders and tenders (only to A-Trade manufacturers) to achieve best price 5 Order (already bulked) is confirmed by A-Trade for banks to pay winning manufacturer providing the consignment Order is fulfilled and delivered, in the process tracked by A-Trade 2 A 4 Banks make single payment or provides LCs Quality assurance exercise Banking institution Fertiliser manufacturer A Ongoing and continuous process # Step by step processes

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 Lead COMESA Seed Committee

OVERALL GOAL END HUNGER

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

Thank You! Merci!