1. 3rd Annual Regional Network of Agricultural Policy Research Institutes (ReNAPRI) Stakeholders
Isaac Tallam
Market System Expert
Venue: Radisson Blue Hotel, Nairobi
Date: 10th November, 2016

2. Who we are
UK govt. funded £35million
5 year trade enhancement & promotion programme focused on staple food crops
Targeted interventions in:
storage, inputs & service markets, information & coordination mechanisms, and policy & regulation
Promotes partnerships & private sector led solutions
…..
….. “To unlock trade across borders and across the region to get more food to more people.”
How we work with ReNAPRI…
ReNAPRI is a FoodTrade ESA programme partner
Country-specific and regional analysis & studies on issues relevant to the development of the regional staple food markets
Knowledge management

3. Our investment tools Development Challenge Fund (CF) Fund (DF)
Total (to date) obligated amount under CF: GBP 9,512,147
Development
Fund (DF)
Total (to date) obligated amount under DF: GBP13,802,800
Some grantees:
Joseph Initiative Ltd. (Ug)
Pee Pee Tanzania Ltd. (Tz)
Classic Foods Ltd. (Ke)
Seba Foods Ltd. (Zm)
Afritec Seeds Ltd. (Ke)……and many more
Some grantees:
The Eastern Africa Grain Council
The UN WFP
ACTESA
Farm Africa
Kilimo Trust

4. Trade for food security
Investments
Output
Outcome
Impact
Transactional challenges:
√ Improved Trade Support Systems (Aggregation; Market linkages)
√ Improved Input Markets
Increased soybean production
Systemic challenges:
√ Influencing key constraints in structured trade systems
√ Improved regional trade policy & regulatory frameworks
√ Removing barriers to trade
More Staples traded and more people benefit from participation in national and cross-border value chains.
Improved functioning of national and regional staple food market systems
FTESA CF
FTESA DF

5. Why Structured Trading Systems?
Transparency, Efficiency & Reliability
Transaction costs reduced
Guarantee: quality and quantity
Win-win:
farmers, traders, processors
Market liquidity & investments
Efficient staple food market systems

7. GSoko partnership objectives
Increased certification of warehouses;
Increased utilization of EA standards;
Automate the operations of certified warehouses;
Strengthen producer aggregation centers and incorporate smallholders in structured trade;
Link the warehouses to an electronic trading platform involving -traders, banks, suppliers and agro-dealers and;
Provide efficient and reliable trade information that informs buyers and sellers on spot market conditions regionally.

8. How it works

9. The GSoko process

10. Current GSoko status 52 warehouses certified (UG-17, TZ-18* KE-17);
139 VACs established within the warehouse catchment area;
38 warehouses (12-Ke,11-Ug & 15-Tz) already installed with GSoko system;
50,360 MT deposited and traded through GSoko warehouses (off-site)
As at the end of October 2016, the Gsoko platform had traded 1,120MT of commodity valued at USD 294, successfully covering three trading sessions

11. Risks
Export bans - promote national vs. regional focus. The grain export ban in Tanzania mostly affecting rice and maize is impacting project beneficiaries; knock-on effect to be felt by small holder farmers and affects the Gsoko system.
Climate change. Extreme weather conditions and their impact on food security effect production levels; this underscores the need for structured trade across regions.
Location. Some VACs are located outside the warehouses catchment area. Therefore, they can’t access the GSoko services.
ICT. Poor internet connectivity-reduced utilisation of GSoko system - low volumes recorded on the system.
Most of the warehouses identified do not meet the EAGC warehouse standards.
Numerous changes on the GSoko system occasioned by the changes proposed by the GSoko partners - sellers, buyers, banks among others.
Need to get more grain volumes into GSoko warehouses.