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

2. ThE CHALLENGE
COMESA-ACTESA

3. Poor Soils, Seed & Farm Management - Low productivity

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

5. 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

6. Product- very Low promote- Nothing to promote price- Nothing to cost place/logistic- nothing to move
COMESA-ACTESA

7. Fertilizer/Seed Distribution Channels in Africa1

8. 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+

9. 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

10. 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

11. Role of Public sector

12. 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)

13. 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

14. 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

15. 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

16. OVERALL GOAL
END HUNGER

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

18. Thank You! Merci!