PROMOTING INNOVATION AND TRADE IN HORTICULTURE 25-27th NOVEMBER 2015, KIGALI,RWANDA

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1 PROMOTING INNOVATION AND TRADE IN HORTICULTURE 25-27th NOVEMBER 2015, KIGALI,RWANDA

2 FACTS AND FIGURES

3 Introduction The Common Market for Eastern and Southern Africa was formed in 1994 as it replaced the Preferential Trade Area (PTA) which was existed as early as The main strategy of COMESA can be summed up as Economic Prosperity through regional integration. With a population of over 410 million people, COMESA offers a huge opportunity for trade both internally among its members and externally to other regions and countries. One of the sectors with a potential for massive trade but not yet being fully exploited is the Horticultural sector.

4 HORTICULTURAL SECTOR Horticulture is one of the sectors that can contribute greatly to foreign exchange within the COMESA region. It offers an alternative to mineral exports which make the economies highly susceptible to external shocks such as global demand and price volatilities. This sector includes mainly fresh vegetables and fruits and is usually considered to have low volume/high value as opposed to high volume/low value agricultural commodities such as maize.

5 EXPORTERS OF HORTICULTURAL PRODUCTS -VEGETABLES List of COMESA Exporters % 11% 2%2%1%1% 0% 46% Egypt Ethiopia Kenya Malawi Madagascar Uganda Sudan (North + South) Zambia Zimbabwe Rwanda Djibouti Swaziland Seychelles Mauritius Congo, Democratic Republic of the

6 EXPORTERS OF HORTICULTURAL PRODUCTS WITHIN COMESA CONTD The top exporters of Horticultural products in COMESA are Egypt (46%), Ethiopia (36%) and Kenya (11%). The rest of the countries share a very small proportion which is negligible.

7 EXPORTERS OF HORTICULTURAL PRODUCTS-FRUITS COMESA EXPORTERS OF HORTICULTURAL PRODUCTS- FRUITS Egypt Kenya Malawi Madagascar 9% 0% 1%1%1%1%1%1% Zimbabwe Sudan (North + South) Swaziland Seychelles Ethiopia Mauritius 83% Uganda Zambia Libya, State of Burundi

8 EXPORTERS OF HORTICULTURAL PRODUCTS-FRUITS- CONTD In terms of fruits, Egypt once again is the major exporter accounting for 82% of the amount exported by COMESA with Kenya with 9 %.

9 COMESA HORTICULTURAL EXPORTS (000 million) COMESA HORTICULTURAL EXPORTS

10 COMESA HORTICULTURAL EXPORTS contd The exports of Horticultural products are on a rise over the past three years. From 2012 to 2014,the value of exports has risen from by 13% although a high increase would be welcome.

11 COMESA HORTICULTURAL IMPORTS (000 million) COMESA HORTICULTURAL IMPORTS

12 COMESA HORTICULTURAL IMPORTS Contd The value of imported horticultural products has equally been on the rise with the percentage rise of 68% from 2010 to 2014.This goes to show that the market for horticultural products within COMESA states is available too. It is therefore important to identify ways in which member states can trade among themselves before they attempt to enter markets with stricter requirements.

13 MARKET SHARE OF COMESA IN GLOBAL HORTICULTURAL MARKET COMESA HORTICUTURAL MARKET SHARE Edible Vegetables Fruits 4,5 4 3,5 3 2,5 2 1,5 1 0,

14 MARKET SHARE OF COMESA IN GLOBAL HORTICULTURAL MARKET CONTD COMESA enjoys a very small market share in the global horticultural market for both vegetables and fruits In absolute terms, the average market share percentage for edible vegetables and fruits over five years ( ) was 3.1 % and 1.3 % respectively. More therefore needs to be done to increase the market share of COMESA to high levels.

15 CHALLENGES High cost of transportation involved ( Horticultural products can only be transported by Air freight due to their perishable nature) High costs of energy required to provide water for the crops. This has been exacerbated by the recent challenges poised by low hydro power generation. Failure to meet all the Sanitary and Phyto sanitary (SPS) measures by the European market coupled with poor farming methods that lead to products of less quality and standards. Investment in alternative sources of energy so as to mitigate the shortage of electricity as a result of low hydro power generation.

16 Challenges Contd Poor infrastructure such as roads and storage facilities at farm level making leading to high rate of perishability Lack of reliable data on levels of products

17 Recommendations Member states of COMESA should make efforts to take advantage of the Lobito corridor as to gain market access into Angola, which offers a huge market, being dominated by extractive industries. Improvements in the collection or data related to horticultural commodities. Investment in management systems that improve the quality and standards of the horticultural commodities so as to meet the SPS requirements.

18 MooRahKohZay!!! Asante Sanaa!!! Thank You!!!!

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