FRESH talk

THE TALK OF THE PRODUCE INDUSTRY

DEC.. 2013 No.9

$16m fund to cut business costs in EA

Africa’s Agribusiness Worth U.S. $1 Trillion By 2030

Falling interest rates, credit uptake and

strong shilling lift Kenyan economy

Call for single body to regulate

GMO’s across Africa

Africa Exploiting the Maritime and Geographical Domain

Juhudi Kilimo lifts 1,000’s of

farmers with low cost financing

Multipurpose fertilizer prolongs shelf life

of Ugandan farmers’ produce

Irish Authority Launches Sustainable Potato Project in Ethiopia

A new fund to support projects aimed

at cutting logistics and transport costs across the East African Community region has been unveiled.

The $16 million TradeMark East Africa Logistics Innovation for Trade (LIFT), fund launched last week in Dar es Salaam, is expected to improve competitiveness of businesses in the region.

Among areas the two-year fund, which runs from 2014 to 2016 targets is cutting transit time along the main transport corridors in East Africa by 15 per cent by 2016.

“The LIFT fund will support private sector investments in freight and other logistics as well as business processes

in East Africa,” said Frank Matsaert, the CEO of TMEA.

East Africa is among regions with the highest freight and transport costs in the world, eroding the competitiveness of locally produced goods in the world market, thus reducing trade, economic growth, and job creation.

Transport and logistics costs are estimated at 42 per cent of the total value of imports, and as high as 75 per cent of the value of exports.

“A 10 per cent reduction in transport costs is likely to increase trade by 25 per cent worldwide. Without addressing logistics efficiency problems, East Africa’s growth potential will be seriously constrained,’’

$16m fund to cut business costs in EA

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said Mr. Matsaert.

Who qualifies?

TMEA regional director for private sector development Lisa Karanja said that for an applicant to qualify for the fund, they must have a transport/ logistic innovative idea for the region, and be ready to share the risk.

“Therefore, they must put in 50 per cent of the capital and get another 50 per cent from LIFT,” said Ms Karanja

The LIFT fund is supported mainly by the UK, with help from Belgium, Denmark, Finland, Netherlands, Sweden, the US and others. ¬

African farmers and the agribusiness

sector could create a trillion-dollar food market by 2030 if they could access more capital and electricity, better technology and irrigated land, according to a World Bank report released in March 2013.

For this goal to be achieved, governments and business leaders in sub-Saharan Africa must place agriculture and agribusiness at the top of the development and business agenda, the report states.

The International Fund for Agricultural Development (IFAD), the UN agency dedicated to poverty eradication in developing countries, called in 2011 for policy innovations and more investments in agriculture and agribusinesses.

Makhtar Diop, the World Bank’s vice-president for the Africa region, says, “The time has come for making African agriculture and agribusiness a catalyst for ending poverty.”

In addition to untapped water resources, Africa has more than half of the world’s fertile and unused land, notes the World Bank, but warns that land allocations for agribusiness have to be carefully carried out.

In 2011 the Oakland Institute, a US-based think tank, reported unfair land deals in South Sudan, under which foreign companies bought up fertile

Africa ’ s Agribusiness Worth U.S. $1 Trillion By 2030 Africa ’ s Agribusiness Worth U.S. $1 Trillion By 2030 Africa ’ s Agribusiness Worth U.S. $1 Trillion By 2030 Africa ’ s Agribusiness Worth U.S. $1 Trillion By 2030

and mostly uncultivated land. Such deals did not clarify land tenure and usage, and worse, even threatened the land rights of rural communities.

The World Bank notes that Africa spends $3.5 billion per year on rice importation. With the right incentives many countries could produce enough rice for domestic consumption.

Senegalese farmers, for example, experience difficulties in accessing land, capital, finance for irrigation expansion and appropriate crop varieties. They could produce more rice if not held back by these difficulties.

Ten years ago the New Partnership for Africa’s Development (NEPAD) launched the Comprehensive African Agriculture Development Programme (CAADP) “to eliminate hunger and reduce poverty through agriculture” by encouraging African countries to invest at least 10% of their national budgets in agriculture.

Strong leadership and commitment from both public and private sectors is critical to increased agricultural production, many analysts believe.

“Transforming agriculture in Africa is not simply about helping Africa; it is essential for ensuring global food security,” maintains the World Bank. ¬

Irish Authority Launches Sustainable Potato Project in Ethiopia

The project is being implemented

with Vita in the Chencha region of Ethiopia. It is part of Teagasc’s new policy on international food security.

Teagasc is partnering on the project with Vita, the Irish NGO, Wageningen University and Research, The Ethiopian Institute of Agricultural Research, The International Potato Centre (CIP), Arba Minch University and the Irish Potato Federation.

The project is intended to empower and strengthen the local knowledge base by funding and training three Ethiopian PhD students. Dissemination of the research will help local subsistence farmers and the research will ultimately be widely transferable across sub-Saharan Africa through a proposed Potato Coalition.

Professor Boyle will pay a return visit to the Ethiopian Agriculture Minister, Mr Tefera Deribew, on the afternoon of Thursday, 31st October following the Minister’s visit to Ireland in early October.

During the visit he will have an opportunity to see first-hand the Vita pilot project on sustainable seed potato systems, and explore the role of research-led agricultural development in the Chencha region of Ethiopia. Formal and active collaboration between Teagasc and Arba Minch University has been initiated with a Memorandum of Understanding (MOU) signed Tuesday, 29th October.

The Teagasc Director will also formalise and build on the collaboration between Teagasc and the Ethiopian Institute of Agricultural Research (EIAR), by signing a Memorandum of Understanding (MOU) on Thursday, 31st October. Professor Boyle will also discuss the outcomes of the visit, as well as Teagasc’s new Policy on International Food Security, with the Irish Embassy in Addis Ababa. ¬

the global economy that will support the export sector, increased trade in the region as well as an expanding export market with the bringing in of new trading partners, implementation of the devolved government system which will stimulate growth at the county level, and an improved business environment,” said Prof Njuguna Ndung’u, the CBK governor.

The CBK said the significance of the cost of funds, credit risk, and Treasury bills as a determinant of interest rate spreads — the difference between what banks pay depositors for their money and how much they charge for loans — has increased. Inflation is cited as among the least of the determinants despite recent pressures, which are seen as short term. However, the country risk profile and exchange rate risk remain the least significant determinants.

The CBK announced recently that the Central Bank Rate (CBR) — the rate bankers use to benchmark the cost of their loans to borrowers — would remain unchanged at 8.5 per cent. Banks have been reluctant to match the CBR, with lending rates averaging at least 16 per cent currently.

Kenya’s economy is stabilising and is

expected to expand rapidly in the coming year, with business executives optimistic of higher credit uptake, a stronger currency and lower lending rates before the year ends.

A new market survey conducted last month, and released by the Central Bank of Kenya on Friday, showed that confidence in the economy is at its highest since the beginning of the year, as inflationary risks fell off the list of fears for most banks and non-banking firms.

Business executives had in August expressed concern over a potential sharp surge in inflation due to the implementation of the Value Added Tax Act 2013, which raised taxes on almost all goods and services.

While the CBK had projected the implementation of the VAT Act to have only a one-off effect on prices, business executives polled in August cited the law as the biggest threat to growth and the economic outlook. This has since changed, and business managers have factored in any shocks from an upsurge in inflation.

The survey shows that both banks and non-bank private firms expect overall

inflation to increase only slightly in the remainder of 2013, largely on account of a likely increase in food prices attributed to the depressed short rains.

However, a stable exchange rate is expected to moderate imported inflationary pressure. Over the past three months, the shilling has fluctuated within a range of Ksh84.72 and Ksh86.79 against the dollar.

The improved outlook gives businesses room to formulate strategies for the coming year; at the same time last year, uncertainty about the March 4 General Election made planning difficult.

Data from the Kenya National Bureau of Statistics shows that inflation declined from 8.29 per cent in September to 7.76 per cent last month, although it remains above the government’s 7.5 per cent upper band.

Executives surveyed by the CBK predicted stability in the remaining part of the year, and a pick-up in economic activity, given the rising number of loan applications and credit growth.

“The factors that are key to the strong growth outlook are macroeconomic stability, increased foreign direct investment in the infrastructure and energy sectors, a projected pick-up of

Falling interest rates, credit uptake and strong shilling Falling interest rates, credit uptake and strong shilling Falling interest rates, credit uptake and strong shilling Falling interest rates, credit uptake and strong shilling lift Kenyan economylift Kenyan economylift Kenyan economylift Kenyan economy

“We do not expect the CBK to react to a temporary VAT-driven breach of the inflation target; however, a modestly higher inflation profile means the first hike in the CBR may come as early as March 2014,” said Razia Khan, the head of research at Standard Chartered Bank, Africa.

“So far, confidence in the Kenyan economy appears to be holding up. The shilling has appreciated modestly since early September. There has been little discernible impact on Kenya’s bond and equity markets,” she said in the bank’s latest assessment on the Kenyan economy.

A 12-year Ksh20 billion ($233.5 million) infrastructure bond auction held at the end of September received bids worth Ksh37.6 billion ($437.2 million), highlighting investors’ optimism in Kenya’s long-term economic prospects.

“Growth in 2013 is expected to be resilient on account of enhanced confidence, with an expected increase in FDI, macroeconomic stability, expected pick-up in credit growth, and prospects for increased regional trade. But slow uptake of GOK expenditure, insecurity, and slow recovery of the global economy were cited as main risks to growth,” said the CBK survey.

The survey shows that banks expect growth at about 5.1 per cent in 2013, while non-bank private firms expect a growth of about five per cent. Medium banks remained comparably optimistic with an expected growth of about 5.4 per cent.

With usable forex reserves at $5.9 billion at the end of October (equivalent to 4.13 months of import cover) compared with $5.7 billion (equivalent to 4.11 months of import cover) at the end of August, Ms Khan said there was limited evidence of economic or market stress.

Kenya is expected to issue its maiden Eurobond early next year.

Several Kenyan firms have posted improved third-quarter profit

earnings, citing an improved business environment and a stabilising economy.

Nairobi Securities Exchange-listed lenders KCB, Equity Bank and Housing Finance, cement maker ARM Cement and telecommunications provider Safaricom have already released their results for their respective periods, posting a growth in profitability.

Kenya Airways on Tuesday said its profit after tax grew to Ksh384 million ($4.4 million) in the six months to September, reversing a Ksh4.8 billion ($55.8 million) loss over the same period last year.

“This has been made possible by among other things the stabilisation of the Eurozone economies, favourable prices of jet fuel, a robust business environment in Kenya following the peaceful elections, and a management focus on pruning loss-making operations,” said Kenya Airways chairman Evanson Mwaniki.

As a result of the improving market conditions, the October survey shows that demand and supply of credit is expected to increase across the economy, driven by a rise in trade and investment opportunities in counties, a pick-up in economic activity, declining lending rates, higher demand for commercial vehicles, and demand from expansion activities by firms.

On average, banks expect to increase credit by about 12.4 per cent while demand from the private sector is expected to increase by about nine per cent.

“But high lending rates and expectations for slightly higher inflation rates are cited as key impediment to credit demand,” said the CBK survey seen by The EastAfrican. “But rising yields on Treasury bills, short-term inflationary pressure and a pick-up in economic activity could exert some pressure.”

Private sector credit grew by 17.36 per cent in September compared with 16.17 per cent in August, CBK data shows, with the ratio of non-performing loans

to total loans declining from 5.3 per cent in August to 5.2 per cent in September, an indication of lower credit risk.

However, the CBK said a weak recovery in the global economy and the instability in the Middle East and North Africa continue to pose risks to the macroeconomic outlook.

“The recession in the Eurozone has slowed down export earnings from tourism while the temporary partial shutdown of the US government in October could affect diaspora remittances from North America in the short-term. These developments, coupled with the volatile international oil prices, remain a threat to price stability,” said the CBK. ¬

cost of funds, credit risk, and

term. However, the country risk

averaging at least 16 per cent

Falling interest rates, credit uptake and strong shilling Falling interest rates, credit uptake and strong shilling Falling interest rates, credit uptake and strong shilling Falling interest rates, credit uptake and strong shilling

Nitrogen Fixation Helps Double Some African Farm

A large-scale research and development project has shown that giving farmers resources and advice on nitrogen fixation through legume plants can double yields and boost incomes in Africa.

But not all farmers are benefiting from this practice due to a lack of access to inputs, such as fertilisers says Ken Giller, the leader of the N2Africa project, as a second phase to widen access to the initiative is announced with US$25.3 million funding from the Bill & Melinda Gates Foundation for the next five years.

Researchers and representatives of NGOs and companies gathered in Nairobi, Kenya, yesterday to discuss the results of N2Africa’s first phase.

This was carried out by a partnership comprising Wageningen University in the Netherlands, the International Centre for Tropical Agriculture, the International Institute of Tropical Agriculture and several NGOs, universities and research centres, mostly based in Africa.

Through the project, around 252,000 smallholders in eight African countries

Cont...

The special fertiliser is often not available or is too expensive for farmers, he says. And, while inoculants are relatively cheap, they are not available everywhere.

N2Africa’s second phase will aim to increase farmers’ access to inputs such as fertiliser and inoculants. It will also work on access to markets for farmers to sell their produce.

There will also be more focus on building the capacity of African NGOs and researchers, says Giller, “to ensure a legacy of expertise that can develop locally appropriate nitrogen-fixing legume technologies in the future”.

Rudy Rabbinge, a member of the board of directors of the Alliance for a Green Revolution in Africa says N2Africa is an important project.

“Its most important outcome … is that it yields insights in how a development project can be run efficiently and effectively.” ¬

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Results from an early impact study presented at today’s meeting in Nairobi show that crop yields could double using the new legumes, inoculant and fertiliser.

But average yields increased only between 78 and 272 kilograms per hectare for different crops, whereas scientists hoped for a target increase of 954 kilograms per hectare.

The average increase in household income was US$335 a year instead of the hoped-for US$465 goal.

“We’ve got proof of massive improvements in yield at field level, due to the right combination of better varieties of legumes and rhizobia, adapted fertiliser and improved management,” Giller says. “Yet many farmers can’t access the right inputs like inoculants and fertilisers, or sow the crops at the ideal time, and that causes lower yields.”

were given legumes, such as soybeans, groundnuts or beans.

Such plants host soil bacteria called rhizobia in their roots that fix atmospheric nitrogen, which is important for plant growth, into the soil. These nitrogen-fixing bacteria can be added to the soil by applying an inoculant, a mixture of peat and rhizobia bacteria.

As well as receiving new legume varieties farmers were advised to use improved inoculants, special fertilisers with more phosphate and were given advice on crop rotation and intercropping.

“We have measurements and observations on thousands of farmers’ fields across Africa,” says Giller, who is a plant scientist at Wageningen University.

The special fertiliser is often not available or is too expensive for

are relatively cheap, they are not

fixing

Africa needs a centralised body to

help it overcome the lack of scientific capacity and expertise in regulating genetically modified organisms (GMOs), says a study. The disarray of national policies, which are often poorly functioning or lacking in scientific expertise to implement them, means that a pan-African approach to GMO risk analysis and Biosafety regulation is needed, according to the study to be published in next month’s issue of Food Policy. A lack of consensus on how to regulate GMOs in Africa partly explains why the technology has yet to significantly improve food security despite its introduction almost two decades ago, the study says. “There is a lack of agreement on how to develop, regulate and use GMOs in Africa, and that’s one of the problems affecting their development,” Ademola Adenle, the paper’s lead author and a research fellow at the UN University in Japan, says: “A centralised approach is needed, whereby the member countries have an agreement as to what is important, and what needs to be done before GMOs are released.”

The study examined the views of more than 300 stakeholders on the role of GMOs in agricultural development. These included research institutes, companies, government ministries and international bodies, in six African countries.

Adenle says the study is the largest and

most comprehensive one on the issue

yet conducted in Africa, revealing a

diverse range of challenges in

developing effective Biosafety

regulatory frameworks across the

continent.

It found, for example, that Egypt and

Tunisia suffer from a lack of biosafety

laws with no risk assessments of

GMOs in Egypt, despite its current

cultivation of pest-resistant Bt maize.

Approval of Kenya’s biosafety laws is

underway, with commercial production

of pest-resistant Bt cotton due in 2014,

however, the country faces challenges

relating to the politicisation of the

biosafety debate, with strong

anti-GMO campaigns, and politicians

using those views to gain popularity.

And in West Africa, biosafety laws

have been approved in Ghana, and are

waiting approval in Nigeria, but there is

limited local scientific expertise for risk

analysis of GMOs undergoing field

trials.

To overcome these challenges, the

study says that Africa could adopt a

shared and centralised approach,

similar to that used to assess risk in the

European Union (EU) by the

European Food Safety Authority

(EFSA).

A centralised approach could help by harmonising existing biosafety policies with new ones to strengthen GMO regulation across Africa, Adenle says. The approach could help ensure that GM products do not harm health or the environment. Adenle says such a body could initially be hosted by South Africa as its regulatory capacity is equivalent to that of the EU. It could then gradually extend to a few other nations such as Egypt, Kenya and Nigeria, which are leaders in biotechnology research and development in Africa. Adenle adds that the new body would take a similar approach to that adopted in the EU, but that Africa’s weak infrastructure and lack of human capital mean that the continent would be more likely to adapt a body like the EFSA than to replicate it. Kristin Wedding and Johanna Nesseth Tuttle, co-authors of a report on GMOs in Africa published last month by think tank the Center for Strategic and International Studies, say the study fills large gaps in the understanding of African stakeholders’ views. Harmonising policies would be beneficial, for example by helping to open up a bigger market for companies, says Nesseth Tuttle. Another benefit, according to Wedding, would be allowing countries that lack scientific capacity to rely on risk assessments done by a regional body “instead of reinventing the wheel by conducting the same resource-intensive evaluations on a country-by-country basis”. But they highlight that adopting a centralised regulatory approach can be challenging. Signing up to a regional policy may also result in local wishes and priorities clashing with those of other nations and the regional body, they say. “The harmonisation of regulatory ap-proaches is hard,” says Nesseth Tuttle. “It’s a lot of negotiation and give and take.” ¬

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Call for single body to Call for single body to Call for single body to Call for single body to

regulate GMO ’ s across Africa regulate GMO ’ s across Africa regulate GMO ’ s across Africa regulate GMO ’ s across Africa

Intercontinental trade, as opposed to intra-continental trade, emphasises the importance of international ports. According to the United Nations Conference on Trade and Develop-ment (UNCTAD), more than 90% of goods worldwide is transported by sea although this varies from one region to another. UNCTAD further notes that overland international transportation is essentially not located in Africa, since the Continent’s major international trade partners are located outside the continent. This is different from Europe and North America where commercial relationships are linked within the continents through a network of well-developed Intermodal transport networks. Maritime transport and port services are thus crucial for economic growth potentials in Africa including the region of PMAESA region.

The observation by UNCTAD should not be construed to be undermining the importance of intra-regional maritime transportation and its role in the development of our countries; rather, it underlines the significance of maritime transport to which ports are the nodal links to overland distribution of goods and services. With a view to realizing the best out of African Maritime and Geographical Economy domain, we need to accentuate on strengthening Africa’s internal and regional markets in an attempt to achieve regional integration and creation of sustainable Regional Eco-nomic Communities (RECs). The role of ports is not limited to transporting goods as inland waters, oceans and seas but is also useful for other activities of economic and social significance like fisheries, offshore renewable energy activities, tourist activities and aquaculture.

The African Union 2050 Africa’s Integrated Maritime (AIM) Strategy notes that in the maritime domain of Africa, the wide variety of related activities are inter-related to some ex-tent and all have a potential impact on the prosperity derivative through their contribution to socio- economic and political stability as well as safety and security. Therefore, policies of our nations, plans, regulations, management of maritime issues and resources should not be confined to a few sectors or activities.

By and large, the plans of our countries on port development mostly take an economic perspective notwithstanding the above AIM Strategy.

The importance of wealth creation to the pursuit of objectives of ports and the wellbeing of our people underlies this phenomenon. As a result, investments in port development in some countries in the region tend to be confined to handling of cargo mostly to carter for international trade. Little serious investment is vivid in serving such areas like fishing, tourist indus-tries or provision of service to the society.

An essential pillar in today’s international maritime trade competitiveness is maritime security. In recent years we have learnt the hard way how insecurity in the maritime trade can hamper and destroy its inherent economic benefits. We need to put forward security initiatives in collaboration with our development partners worldwide that can pre-position African ports for growth through meeting international maritime/port security standards.

Diversity of geographical positions of countries in the region provides countries with coastal lines and those without. Out of 15 SADC Members states, 7 are land linked with each of these countries enjoying access to more than three coastal ports. The 15 economies put together translate into a very huge potential. Despite the huge potential our Maritime economy is still not well developed as more than 70% of our trade with the rest of the World is dependent on foreign owed ships.

Furthermore, trade relations within ourselves are severely constrained by poor inland transport links in terms of roads and rail and numerous institutional challenges like the non-tariff barriers. As a result, transport cost to and from Africa is two and a half times higher than to any other continent. Within Africa itself, the cost is as much as ten times higher.

Through effective regional integration, we stand to jointly enhance the potentials of ports to all countries with coastal line and those without in the region. This entails consideration of mutual economic benefits by all committed cooperation or collaboration among our nations and between the public and the private sector as well. That is to say, the potential of a port to the country is maximized where it is an attractive option to clients, and in this respect, I wish to emphasize transit clients who assure legitimate use of our ports be-cause they can hardly practice illegal

Ports are an interface between water transportation and other modes of transport such as road, rail and air transport thereby contributing significantly to fulfilment of place utility of what our economies produce. That is why it is said; transportation is a key factor for promotion and facilitation of domestic as well as international trade. Much as international ports perform the function of international trade, development of its infrastructure is inevitable.

Maritime ports are a key component of the transport system without which economic development in today’s world is hard to be achieved. World Economic development hinges on international specialization and division of labour, which in turn entails exchange relationships among nations. These relationships are increasingly getting more and more important with globalization, which makes interdependence among economies and the instantaneous transportation of goods the lifelines of global economics.

The aforementioned theme in question challenges African ports and indeed African nations to tap the tremendous economic potentials that are inherent in the role of ports for facilitation of international trade and for propelling economic development of the continent. Our region is endowed with a vast coastline and inland waterways shores, with a capacity of enhancing and facilitating global trade. Africa and indeed Sub-Saharan Africa is well placed to capitalize on our maritime heritage of having numerous poten-tials, which if properly developed will enhance trade with far reaching social-economic benefits for our countries and the region at large.

Africa Exploiting the Maritime and Geographical Domain

and damaging importations through

unofficial routes and ports. Despite

numerous attempts to foster

cooperation through regional

integration, we still face demanding

situations signified by such issues like

nontariff barriers, which are more

evident in Africa than in Europe and

North America.

Shippers and consignees in Malawi, Zambia, the DR Congo, Burundi, Rwanda, Uganda and Southern Sudan should feel at ease to opt for Dar es Salaam port, for instance. The same should be the case with ports of Mom-basa, Beira, Durban and Walvis Bay, among others. Only when this is achieved will the geographical position of our ports be said to derive the best to nations with seaports and those without.

Investment in port infrastructure, superstructure, handling equipment, ICT, as well as investments in hinterland connectivity should reckon with these orientations. Our regulations, rules, orders and the likes should equally do the same. We also need to upgrade our road and railway networks in such a manner that will encourage the business community to allocate appropriate cargo to appropriate mode of transport so as to realize long-term economic growth and prosperity.

Based on the aforementioned, allow me now to account for some of Tanzanian Government efforts towards this end. Tanzania transport sector’s growth and performance have continued to improve due to both government efforts and private sector investment in road rehabilitation, expansion of telecommunications services, modernization of port infrastructure and services, and improvement in marine, railway and air transport services.

The Government of Tanzania has embarked on a multi-sectoral programme that requires redirection of resources in area, which will give results in the quickest way possible. The “Big Result Now” (BRN) programme launched in April 2013 includes initiatives seeking to improve the transport infrastructure and services in the maritime and rail sub sectors. In the ports sub sector alone about 20 project components valued at US$ 1.6 billion were identified and are available for funding. I ask our colleagues, particularly from the private sector and the donor community in

general in the region to participate in financing these projects. PPP Policy, PPP law and Regulations are in place specifically aimed at easing what used to be a difficulty experience for the private sector to participate in projects of public economic interests.

The BRN Program is also envisaged to revitalize significantly the railway performance on the Central Corridor, which starts at the port of Dar es Salaam linking it with Burundi, Rwanda, Uganda and North Eastern DRC. The Central Corridor is geared to improve steadily such that within the coming two years it be able to handle more cargo than it has ever done before in its history. The component of Dar es Salaam port seeks to increase the capacity of the port by over 30% within two years, which will instantaneously impact positively to the Dar es Salaam Corridor that leads to Malawi, Zambia, and DR Congo.

Whatever we strive to achieve should be based on securing long-term success for our ports so that they can deliver a better service to Africa’s industry, economy and secure their position as cornerstones of the Trans-African Transport Network. ¬

By Honourable Dr. Charles John Tizeba (MP) Deputy Minister for Transport, The United Republic of Tanzania

The initiative which mainly focuses on uplifting the livelihoods of smallholder rural farmers with technically no capacity to access formal financing from commercial banks and micro finance institutions was started in 2009 through K-Rep Development Agency in a bid to bridge the gap for these type of farmers who in most cases are ignored as they are considered ‘high risk’ clients.

Elvine Walale a Marketing Assistant from Juhudi Kilimo explained, “We realized that the smallholder rural farmers are a unique niche with quite different needs and potential. Although they need financial assistance to advance in agribusiness; they sharply differ from other clients on the tailoring of the financial service for instance, the need for a grace period, lack of collateral to act as security for the loan and the repayment period.”

He added that, despite the fact that the farmers were ignored by the mainstream financial institutions, they were the backbone of the country’s food security since they are responsible for over 80 percent of the produce and therefore it was prudent to help them increase their asset base and ultimately cushion the masses against food in security.

Since its, inception Juhudi Kilimo has benefited over 24000 smallholder farmers. Elvine Walale added, “We are amazed by the fast rate of adoption and deepening of services among our core clients who are smallholder farmers and we are projecting to impact over 100000 of them by 2015.” The beneficiaries are stretched throughout the country with a main focus on interior rural farmers. The organization has tailor made the asset financing initiative to cover most needs of the farmers in the country, which include irrigation, poultry, dairy farming, and biogas installation among others.

Unlike the mainstream financial institutions, when one is interested in acquiring the asset finance loan under Juhudi Kilimo, Elvine explained that one has to undergo a thorough training

this phenomenon. As a result,

An essential pillar in today’s international maritime trade

roads and rail and numerous

we stand to jointly enhance the

committed cooperation or

sector as well. That is to say, the

Juhudi Kilimo lifts 0000s

of farmers with low

cost financing

Smallholder farmers in need of

financing can now not only acquire

agricultural asset finance without

collateral but also double it with

expertise knowledge on the best

husbandry methods to triple their

earnings thanks to Juhudi Kilimo- a

social enterprise organization.

of about 2 months on project feasibility and how best to use the capital to maximize returns at the shortest time in order to also clear the loan on time. “The training entails good governance, financial management training and agri-business training so that the farmers are ready to take this loan and impact on their lives positively because for most of these farmers, we are their first exposure to a financial service.”

Another core component that characterizes clients under Juhudi Kilimo is the spirit of solidarity. The organization encourages farmers to form groups and register them as they can only deal with farmers belonging in a particular group of not less than 15 members. “It’s easier to deal with a group that is registered although the asset financing is disbursed to individual member to finance a project of his liking.

The group only acts as a guarantor to the individual members taking up the loan. In case a member defaults, then the group helps the organization in auctioning the asset although through experience, we have learnt that the members act in solidarity and all yearn to succeed hence we register disciplined repayment rates with over 95 percent.”

Once a loan is dispatched, an individual is given a two-month grace period before onset of repayment. Farmers applying for the loan for the first time can get a loan of up-to Sh65000 and based on their repayment ethics, this can be reviewed and one can get more cash in later requests.

Silvia Gakiiru is one of the many small-holder farmers who have benefited from Juhudi Kilimo since its inception and she is upbeat about the initiative. “I started out with a loan on irrigation kits which I repaid in three months.

I have enjoyed over four loans financing me in various projects and honestly I have graduated from a smallholder farmer to a model farmer. I now have over seven dairy cows, poultry project with an incubator and

The fertilizer that is now positioning itself as a must have for any farmer keen on registering better yields is organic in nature and is said to have all the nutrients required by any plant therefore comfortably earning the name ‘complete fertilizer’.

The complete fertilizer dubbed Di-Grow is manufactured from decomposing material from Acadian Sea weed. Brian Job Olema an agronomist working with Dynapharm a Malaysian firm that supplies the product in the country noted that the fertilizer is an all round one containing all minerals like nitrogen, phosphorus, potassium, calcium, magnesium among others. “This is a complete organic fertilizer and its high abilities are one of the reasons as to why many farmers in Uganda are adopting it. In addition, its ideal for any type of crop and therefore do not limit a farmer growing various types of crops.”

Acadian Sea weed is praised by scientists for its tolerance to fungal diseases like blight and therefore Olema noted that for farmers growing crops that are mostly affected by fungal and bacterial diseases the fertilizer was a big boost to their efforts to combat such misfortunes. “Farmers growing tomatoes that are mostly affected by tomato blight, the fertilizer is a real relief for them as it enhances the plants resistance to the disease,” explained Olema.

However he cautioned that for farmers to acquire better results some pesticides should be supplemented especially after noticing signs of specific diseases. The fertilizer is applied after 3 weeks of transplanting the crops although some crops with grain seeds can be soaked in the same solution having the fertilizer. The solution is sprayed on the leaves of the plant targeting its’ stomata.

Stomata are minute aperture structures on plants found typically on the outer leaf skin layer and their main function is to allow gases such as carbon dioxide, water vapour and oxygen to move rapidly into and out of the leaf. It’s recommended that one has to

am still growing by leaps and bounds, thanks to the Juhudi Kilimo initiative.”

The organization has established partnerships with a number of other stakeholders in the agribusiness sector to help in providing the knowledge and quality farm inputs to ensure that the farmers get the best from their effort. “We also try to link up farmers with market opportunities for their produce and as a result the farmers end enjoying our partnership as we do not only offer financial service but help steer the farmer to grow up the ladder of success,” explained Elvine.

The detailed service to the farmer according to Elvine is commensurate to the 18 percent interest rate charged on the loan. One of the tailor-made products that have seen massive adoption by the farmers is the finance on Dairy farming which Elvine explained that it promises quick returns and is easy to manage. Silvia also supports this fact noting that the beauty about the interest rate from organization is that it is deducted on decreasing balance unlike the set instalments from other financial institutions, which one has to pay until completion of the loan. ¬

Multipurpose fertilizer prolongs shelf life of Ugandan farmers’ produce

Farmers in Uganda are cashing in on a new type of fertilizer that not only doubles yields but also enables plants to be tolerant to the fungal and bacterial diseases like blight in addition to prolonging the shelf life of fruits like banana and tomato to over 8 days.

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The complete fertilizer dubbed Grow is manufactured from

Sea weed. Brian Job Olema an

Acadian Sea weed is praised by

to acquire better results some

especially after noticing signs of specific diseases. The fertilizer is

solution having the fertilizer. The

is to allow gases such as carbon

plant will produce hence a bumper harvest,” noted Olema. The second application of the fertilizer also increases the fruit size and prolongs the shelf life of fruits especially tomatoes and bananas to over 8 days after ripening.

Focusing on smallholder farmers the fertilizer is packaged in smaller quantities starting from 500ml, 1 litre going upwards. According to Olema, DI-Grow has a potential to double the yields of any farmer who rightly uses it and is affordable to many households given its’ lower price compared to the conventional fertilizers in the market.

spray the fertilizer at periods when the stomata are wide open. Olema advised, “In order to get the right results, one should apply the fertilizer in the morning hours before 10am and in the evening from 4pm onwards.

Stomata apertures will typically vary in response to changes in light intensity, saturation deficit of ambient water vapour and soil moisture availability and therefore since that is the only way through which the plants absorb the nutrient applied on the leaves; it should be done while they are wide open to enable this process to take place.

With one litre of the Di-Grow, one is able to apply to crops covering over two acres of land. According to Olema, the fertilizer not only doubles the yields of crops but is ideal for smallholder farmers with low incomes as it is affordable compared to the inorganic fertilizers in the market. Olema explained, “1 litre of Di-Grow which is enough for over 2 acres of land costs about Sh1300.

However, for farmers using the inorganic fertilizers to apply a two acre piece of land, they will need about 2 bags of the fertilizer with each bag costing about Sh3,300 summing to over Sh6,600 for the same size of land.” He also added that the fertilizer is complete as it contains all the nutrients an therefore a farmer only applies it without buying other supplements for the crops whereas with the conventional fertilizers in the market, for a farmer in need of specific nutrient has to purchase a different type of fertilizer hence in the long run it becomes a costly venture.

Farmers using the fertilizer are advised to apply it twice during a crops lifespan especially the corn and beans. The first application is for the plant enhancer as it strengthens the plants’ roots, stems and increases uptake of nutrients from the soil.

The second application is recommended when the plants start flowering. “The second application initiates the plants to produce more flower buds and as one has plants with more flower buds the more fruits the

“Any type of fertilizer grants 50 percent increment of yields if proper husbandry methods are observed but with DI-Grow, not only can it double the yields but also safeguard the crops against pests, bacterial and fungal diseases and therefore its high adop-tion rate in the country is because of its multiple solutions it provides to farmers,” noted Olema.

For more information you can contact:

Brian Job Olema- Agronomist with Dynapharm

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Over recent decades, formal research

and extension, led by governments and big enterprises, have led to novel answers for emerging problems in agriculture.

However, these have generally failed small-scale farmers – one fifth of the world’s population. Every day, small-scale farmers face numerous challenges that include feeding their families, paying for labour, controlling pests, managing natural resources, coping with market demands, adapting to climate change and the rising cost of energy, and dealing with political and military conflicts.

On top of that, with typically less than 25 per cent of the total share of land in most developing countries, they produce 50-75 per cent of the domestic food supply from culturally and biologically diverse agriculture.

For sustainable food production to become a reality, it is crucial to fulfil family farmers’ needs – and agroecology is arguably the most realistic way of achieving that.

A sustainable science Widely considered the science of sustainable agriculture, agroecology fosters and spreads farmers’ collective knowledge in particular environments – a knowledge that coevolves with a strong scientific foundation and a well-organised social base – to design and manage more efficient, productive and environmentally sound farming systems.

For example, farmers adapt to climate change by making choices according to short-term and site-specific weather

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with social awareness, has the potential to solve this challenge through activities such as sharing locally adapted experience on how to apply ecological principles when managing agricultural systems.

Dilemmas for agroecology But still, these activities have little impact on the broader discourse around sustainable agriculture.

Agroecological practice is often too dynamic and complex to be included in industrially standardised farming systems. There is a need to redesign infrastructures – for crop transformation, distribution and storage – for the demands of decentralized and smaller scale agriculture.

The challenge is enormous. One critical issue is that agroecology does not adhere to standards or guidelines, as organic agriculture does. Rather, it is subjective – “in the eye of the beholder”. There are many variations of agroecology, which is problematic.

An emerging challenge is that agroecology is now being co-opted by people and organisations that support its potential to coexist alongside biotechnologies. But this is not grounded in any evidence of success.

And any system that promotes monocultures and drives family farmers off their land has no agroecological orientation. For example, conservation agriculture is considered by some as an agroecological and environmentally sound system. But it can involve the use of large amounts of herbicides and transgenic crops.

What is well documented, on the other hand, is that making farmers dependent on industrial technologies, such as genetic manipulation, undermines their sovereignty – their ability to decide for themselves how to design and apply technology.

Cont...

patterns and a number of other approaches.

Research has shown agroecology to be flexible and dynamic enough to be adapted to various socioeconomic and environmental conditions; and it is easy for people to access, own quickly and adopt effectively.

A report by Olivier De Schutter, UN reporter on the right to food, states that “agroecology, if sufficiently supported, can double food production in entire regions within ten years while mitigating climate change and alleviating rural poverty”.

However, most governments and institutions are still giving little atten-tion (or financial support), regarding agroecology as an alternative rather than the leading option for future agriculture.

From science into practice There are some successful projects, social movements and academic programmes dedicated to agroecological education and research in Colombia, Costa Rica, Cuba and Mexico.

For example, the Farmer-to-Farmer Movement of the National Association of Small Farmers in Central America and Cuba disseminates technology and promotes socioeconomic empowerment by helping farmers mo-bilise and exchange experiences.

The Rede ECOVIDA de Agroecologia project in Brazil is working to strengthen small-scale farmers’ capacity to cope with consumer demands and move towards commercialisation. And national agroecological laws in Bolivia, Brazil, Ecuador and Nicaragua indicate growing political awareness.

Cuba, is considered a model of agroecology. But in spite of this, there is a renaissance of industrial agricultural production and the country still imports substantial quantities of food.

Agroecological innovation, together

Agro-ecology Taps a Wellspring of Farming Knowledge

$4,441 for coffee and bananas grown together, compared with $1,728 and $2,364 for bananas and coffee grown alone, respectively.

In the robusta-growing areas, annual returns per hectare averaged $1,827 for coffee plus bananas, while farmers earned $1,170 and $1,286 for solely growing bananas and coffee in the same amount of space. Since coffee yields were essentially the same in both systems, the extra revenues came from adding the banana plants. Scientists therefore recommend planting two coffee trees for each banana plant.

In Western Kenya farmers are now reaping the benefits of growing sugar cane with indigenous vegetables, with the vegetables insulating them from the erratic cane market while increasing fertility in their soils. The indigenous vegetables were a favourite among farmers in especially Mumias and Bungoma area in the 60's occupying on average three quarter of household's crop production.

While the average farmer owns an acre of land, making the most of it has been

“We are doing research at that moment that shows - the more shade you put - I know we are talking about bananas, but we are also talking about shade trees - then you also sequester carbon much more - and that’s good for carbon mitigation,” said Jassogne, an agricultural systems scientist with the Consortium for Improving Agriculture-based Livelihoods in Africa.

But new research by the consortium on the benefits of intercropping show that beside shielding the farmers from climate change, the commercial benefits to the farmers of growing the crops together are substantial. The research showed that in the arabica coffee-growing regions, annual returns per hectare averaged

Building bridges To transform the status quo of agribusiness into an agricultural system dominated by family farming and agroecology, we need ‘farming like we’re here to stay’ – an approach that reflects a shared vision of the future.

This goes beyond technology or technological innovation: it’s about learning how to live in the countryside, understanding local dynamics and exchanging information about adapted experiences and technologies in order to modernise rural life.

The best way – and the most difficult step towards building bridges between the discourse and real-life agroecological challenges – is to get scientists directly involved with farming, education, commercialisation and policy.

One of the hardest jobs I’ve ever done is probably digging a well through rock on my farm, looking for water in the dry season – but it was how I found a metaphor for agroecology: the more you dig, the deeper the water goes.

Similarly, the more one looks into agroecology, the more benefits you find for sustainable agriculture.

Fernando R. Funes-Monzote is an agroecologist, researcher, international consultant and farmer based in Cuba. He is vice-president of the Latin American Scientific Society of Agroecology (SOCLA) and can be contacted at mgahonam@enet.cu

This article is part of the Spotlight on Producing food sustainably.

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Farmers across the country are

reaping from growing different crops within the same area, a practice that is not only helping them double yields but is assisting the crops rely on each other in hedging against diseases and vagaries of weather.

Farmers in coffee-growing Kericho area are growing bananas with coffee, in a practice now been hailed by scientists as key to protecting coffee from climate change, and raising coffee yields, at a time when temperatures are projected to rise between 3 to 4 degrees in the next decade. Farmers in Kericho report that the bark from the banana trees is serving as fertiliser for the coffee, while the leaves shade the coffee from the bright sun, and the bananas feed their families while they wait for the coffee to harvest.

At the same time, scientists say the permanent nature of the banana and coffee canopy and root systems is strongly reducing erosion in hilly regions, and mitigating carbon creation.

Yields and income grow as intercropping takes shape among farmers

Determining freight

every farmer's wish, which has now seen this new form of intercropping now attract over 400,000 farmers. Virginia Nelima is one such farmer. For the last fifteen years she has stuck to cane farming. But dwindling returns have meant a change of attitude, and eventually of income.

manage to harvest over 20 kilos of the vegetables which I sell to a supermarket nearby at Sh150 a kilo. That is income enough for my family, to feed, cloth and educate my children and I dont have to desperately rely on delayed payments for sugarcane that I deliver to Mumias,”said Nelima a single mother of two. ¬

While sugarcane used to cater to her and her family's needs late payments and the volatile market saw her adopt the intercropping method. Now she sells the vegetables to local stores and hospitals where the demand has ballooned, thanks to their nutritional value. “In my half an acre of land I

Farmers reclaim depleted soils growing crops in sloped land

As unpredictable heavy rainfall takes a

toll on sloping land which has seen soils being swept away together with the nutrients, farmers are working with scientists to reclaim the land through terrace cultivation, a venture they say is now delivering up to 40 percent yields. Involving the growing of crops on sides of the sloped land by planting on graduated terraces built into the slope, terracing is however working well especially when complemented with planting more crops that hold the soil in place. Although soil researchers argue that terracing takes up 30 percent per hectare more of farming space, they also argue that improved productivity is core and even allows the farmer to recover for the ‘lost space’.

Sharon Wondenyi, an expert in Soil management says a combination of terracing and the right planting pre-vents nutrients applied through fertilizers or manures from being eroded by heavy rains.

The key lies in planting crops like paw paws, Napier grass, bananas and tree crops on the embankments formed after soil is packed downhill or uphill. As well as providing a root network that holds the terrace embankment together, these extra crops deliver

alternative sources of food and income to farmers. During heavy rains, the nutritive topsoil is not eroded on terraces with vegetation that is holding the soil together. The vegetation also replenishes organic matter by creating dead matter like dry leaves or stalks. In semi-arid areas, this dry matter forms a humus mulch and conserves water in the soil.

In Kenya, the three types of terracing that are common are ‘fanya juu’, ‘fanya chini’ and bench terracing. In ‘fanya juu’ as a terrace is dug the soil is thrown uphill to form an embankment. The steeper the slope, the closer the ‘fanya juu’ terraces, so as to reduce the momentum of the rain or the run off water. This slowing down of the momentum of the water sees water infiltrating the soil rather than washing off the topsoil layer. “The restraining reduces soil erosion,” said Dr Okoba.

In ‘fanya chini’ terracing is done as a single terrace on the top most section of the land. The soil is thrown down-hill to form an embankment.

The embankment “cuts off external waters from entering the field below,” said Dr Okoba. This kind of terracing reduces the water’s erosive capacity as it flows onto the fields below, making the flow into a natural water source for crops.

Bench terracing is rare in Kenya, but common in steep regions where tea and coffee are grown. It can result in landslides if it is used on sandy soils or soils with low organic matter, as such soils are loose and unstable. Farmers can identify when their sloping land needs terracing, if there are gulleys or rills developing and a reduction in the different types of plants growing. Red soil also indicates depleted soil.

But the ultimate measure is yield; One study showed maize yields per hectare reduced from 4 tonnes to 0.8 tonnes a hectare in Embu. Trees, shrubs, grasses Desmodium, Leucaena shrub, Vetiva grass, Acacia Albida, and Grevellia Robusta tree are some of the crops soil scientists are encouraging farmers to plant in the terrace embankments. Their root networks stabilize terraces and produces dry matter that replenishes the soil’s organic matter. They don’t compete for resources with other crops and these varieties can also be pruned and sprout back, and help in soil water retention.

Terracing is most suited for high rainfall and semi-arid regions with steep slopes. Regions where terracing has been successful are Muranga, Nyeri, parts of Machakos, Mt Elgon and Kitale. ¬

He singles out Rural Outreach Program as the most influential since it does not only preach the gospel of abstinence and use of contraceptives but also teaches the public on how to eat healthy and improve food security in the region. Prof. Judy Kimiywe Ongaji, an associate professor and lecturer at Kenyatta University's Department of Foods, Nutrition and Dietetics who hails from Vihiga County has all praises for the Alliance for a Green Revolution in Africa (AGRA) funded project.

Without mincing words, the academician who has conducted several studies on HIV/AIDS and nutrition predicts that eating of traditional foods and vegetables will raise the life expectancy from 58 to 61 and 57 to 60 in women and men respectively as those foods have less fats compared to genetically modified foods people consume nowadays. ¬

anticipated her death in a month after contracting HIV/AIDS.

With all indigenous vegetables like pumpkin leaves, cow peas and Amaranathus also called wondering weed, Esendi is less worried about modern vitamin giving foods that she term as expensive and less nutritious. Echoing Esendi's sentiments is Prof. Ruth Aniang'o, a nutritional science lecturer at Great Lake University in Kisumu who is also the founder of the organisation. The three decade long nutritionist holds that most of indigenous vegetables have medicinal value due to their high vitamin content that boosts immune system.

In a research she conducted and published in her monthly food science journal African Journal of Food, Agriculture, Nutrition and Development (AJFAND), she asserts that traditional African vegetables have high levels of vitamin K since they have photosynthetic tissues known as phylloquinone that is a fat-soluble vitamin which lack in many other vegetables and fruits.

Since its inception in 1992, Rural Outreach Program has been the umbilical cord that has united farmers in Western Kenya and offered them a platform to discuss and offer solutions to social economic problems like HIV/AIDS, food insecurity and general health. A close review of HIV prevalence rate in the region for instance tells the success story of this organisation.

The HIV/AIDS pandemic hit the region in late 1980s an aspect that provoked the founder to initiate this programme. Although the prevalence rate was on rise from 1990-1994 with the highest being 7.1 percent, the prevalence rate has dropped over years the least of all times recorded last year at 5.2 percent. Dr. Victor Zimbulu, a medical officer in Sabatia attributes this drop to awareness programmes mostly carried out by Non state agencies.

A nutritious farming project in Vihiga

County that inculcates people living positively with HIV through cultivation of traditional vegetables and legumes with high nutritional value has been the locals’ saving grace allowing especially the affected live a dignified life while boosting incomes of locals in an area struggling with chronic poverty levels. Dubbed the Rural Outreach Programme, the programme has also been a bond that has united families and allowing them to freely interact with the HIV positive among them, dispelling traditional myths.

Beatrice Jumba 36, an HIV patient, whose husband died of HIV/AIDS related diseases two years ago, is one such farmer. With a vast arable land and elaborate farming skills offered to her by experts from ROP, the mother of two teenagers has ventured into yam and soya beans farming that offers her enough vegetables both for subsistence and commercial purposes.

Yam leaves commonly known as 'seveve' is a delicious vegetable and has zero content of saturated fats with high contents of vitamin A and C that enhance immune system, according to Doris Anjawa, the organisation's field coordinator who has speciality in nutrition. '' I want to ensure that my sons grow stronger enough to depend on their effort when am gone,” she said.

She continues that before Rural Outreach Program came on board, she used to plant maize on sections of the farm hence buying the rest of nutritional foods. 'I could buy 'seveve' at Mbale market for Sh30 thrice a week and six eggs daily for Sh72 but nowadays, am plucking it from my garden and even supply them to vendors in the market,'' added another rural farmer.

Janet Esendi has all praises for the initiative that has seen her ailing daughter continue to breath to the dismay of her village folk who

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HIV+ farmers lead in cultivation of rare veggies, growing income and health

Without mincing words, the

nutrition predicts that eating of

and 57 to 60 in women and men

An Innovative student has initiated a

program that is aimed to bring merchandise that is sold by mama mbogas to their doorsteps of customers, a move that not only promises to curb the rampant insecurity problems faced by the women entrepreneurs from the slums but also provide a guaranteed market for most of the small holder farmers growing vegetables.

Suraj Gudka a Kenyan student from London School of Economics having witnessed a firsthand experience of the hustles encountered by the women vegetable sellers from Mathare slums decided to do something about it and luck got her to a social enterprise competition called Hult.

Hult is the world’s largest student competition aimed at solving the world's social challenges and it pools budding young social entrepreneurs emerging from the world’s leading universities. Suraj together with his four counterparts from London school of Economics positioned their idea to be in line with Hult theme which was to provide a solution for social problems through creation of an enterprise. Their idea was to develop a product that is aimed at using technology to try and link up farmers and the mama mbogas from many slums in Nairobi.

the doorstep without undergoing the tedious early morning journeys to the markets. The retailers communicate to the firm by sending a text message to the firm informing them of the quantity and type of order they need for the following day.

Suraj noted that they give the retailers an 8pm deadline time of sending the text order. The firm then aggregates all the orders received from the various retailers and informs the farmers on the quantity to be purchased. The vegetables include kales, spinach, tomatoes, onions, and potatoes among others. The team together with their driver then picks the goods early in the morning from the various farmers and transport them to the depots located in the densely populated slums of the city. He explained, “The firm has enhanced its delivery and commitment and we ensure that we deliver the commodities at the depots before noon from where the mama mbogas come and pick their respective orders.”

The initiative which is currently running as a pilot project in Mathare slum has received the backing of most of the vegetable retailers in the area. “We have received a lot of appeals by many mama mbogas that were never included in the pilot program to be considered and with the success that we have witnessed for the last 4 months, we hope to commercialize it from the beginning of December 2013,” explained Suraj.

He added that the firm had to try and see the viability of the project before commercializing it. We are now upbeat about the success of the initiative and we want to capture the over 3 million people living in most of the slums in Nairobi with about 90 percent relying on the mama mbogas. The goal is to ensure that vegetable retailers’ work is minimized and also the population is fed on hygienically safe and fresh. In addition, Suraj noted that the beauty about their initiative is that they try to source the vegetables from the farmers on the ground and therefore are guaranteeing the retailers prices that

Cont...

Dubbed Soko-Text, the noble enterprise is deemed to shorten and link up the supply chain from small holder farmers of vegetables to the end retailers who are the mama Mbogas in the outskirts of the city center mostly in slums. Suraj noted, “We are focusing on vegetable sellers who live in low class residential areas; these are areas where people are a law to themselves. Muggings, rape, drug abuse and all manner of social evils reside, but they cope to serve the masses,” said Suraj.

The business enterprise, which saw the group voted as runners up in the Hult competition and honoured by some of the leading world figures like Bill Clinton and Mohamad Yunus. The group found a way of incorporating technology to help most of the population living in the slum areas of Nairobi. The program uses text messages to communicate to the members in the supply chain who are mainly the retailers and the farmers. “We established a hotline number for text messages where we can communicate with the Mama mbogas and get the orders for the day and then aggregate it and supply in bulk to their doorsteps and at cheaper prices,” noted Suraj.

The process entails registration of all the interested vegetable retailers who then start receiving their supplies at

Innovation delivers produce to mama mboga’s doorsteps, curbing insecurity and guaranteeing markets

are about 20 percent lower than the market prices.

The initiative is aimed at incorporating over 5000 mama mbogas across the city. The mama mbogas who are already using the technology are saving a fortune. Rose Waithera one of the beneficiaries of the pilot initiative noted, “I no longer have to worry about my security and the loss of my little capital to the thugs who used to prey on us early in the morning as we headed to the markets like Gikomba to

and Suraj added that the depots are to be situated near the mama mbogas a distance of about 10 minute walk.

The cost of the text message is also affordable by the retailers as it only costs about Sh1. With the country’s mobile phone penetration at over 75 percent, the integration of mobile technology to try to provide solutions to the masses like Soko-Text has been hailed by many stakeholders in the industry as a step in the right direction. ¬

replenish our stock. I am not only saving my transport and time but also am guaranteed to get the best fresh produce which we are assured of its safety by Soko-Text team.” She also boasted that the initiative has assured them cheaper prices for the goods as opposed to the prices at Gikomba markets.

Over 150 depots are to be set up in every slum by Soko-Text to ensure the success of the project. Each slum area in the city is targeted by the program

Kenya’s wheat production dips on poor farming technique

Kenya's wheat production has been

on a downward spiral in recent years, even as demand soars driven by rising urbanization where people are developing an appetite for mass-produced, convenient foods containing processed wheat flour. The national demand for wheat has increased to 900 tonnes annually against national production of 300 tonnes, with demand rising by some 5 per cent each year on rural urban migration and changing dietary habits. This yawning deficit has taken its toll on food prices and the country GDP growth as wheat is regarded Kenya's second staple food after maize.

This has seen Kenya import about 60 percent of its wheat needs mainly from Egypt and Mauritius, according to the

susceptible to the fungus which turns fields of wheat into black stubble, with empty spikes that hold little or no grain.

Narok one of the leading wheat producing regions in the country, has constantly been among the hardest hit regions by the Ug99 fungus, drastically affecting wheat supply in the country. In 2008 the attack on Narok farms pushed wheat flour prices up by 100 percent. The drop in wheat production and in Narok output again in 2010 was flagged by the Ministry of Planning as one of the factors that slowed Kenya's economic growth in 2011. The disease has mainly affected small-scale farmers because most of them cannot afford to buy the pesticides, leading to up to 80 per cent of their crop being lost. It is estimated that up to 30,000 tonnes of wheat are lost to the rust annually.

The cost of spraying pesticide four times before the harvest is estimated to be Sh10,000 per hectare, or about 33 per cent of the cost of production. This burden on impotent pest control methods has come at a time when higher yields hold the key to stabilising the prices of products derived from Kenya’s wheat.

But it hasnt been all doom and gloom for some farmers. Private companies privy to the value of wheat in the country have been actively involved in assisting farmers access timely and cost effective pest control mechanisms. Elgon Kenya Limited is one such company. Through an array of pesticides that goes with farmer

Cont...

Ministry of Agriculture. And while it is not nearly as widely grown as maize or rice, wheat nevertheless is an important component of the country’s domestic food production - being grown on about 4 per cent of the country’s arable land, as 160,000 hectares out of 4,000,000 hectares of arable land. Among the major causes of the deficit has been a catastrophic wheat stem rust originating from Uganda and responsible for 50-70 per cent of yield losses which has ravaged Kenya's wheat farmers for the better part of this decade.

The deadly mutant fungus, Ug99, named after its discovery in Uganda in 1999, is spread by wind-borne spores. By 2003, most of Kenyan's wheat varieties had been identified as

spotted first hand how dangerous this trend was going after our field officers spent time with farmers in Narok. We decided to step in and we have been glad to notice wheat farms flourishing,” said Nelson Maina Head of Communication at Elgon Kenya Ltd. ¬

trainings, the company ensures that every farmer has access to these arsenals at their convenience thanks to its rich agrovet and stockist distribution network across the country.

Such timely interventions, industry

players say, are capable of bridging the gaping deficit by even up to a half, a fact which would be a major leap in giving the country an alternative staple in times of maize shortage which has become endemic in the country. “We

A model that allows farmers to access

markets directly and determine prices as a bloc is steadily gaining ground in Kenya, a breakthrough that is now seeing farmers triple seasonal earnings through competitive market prices with onions now turning smallholder farmers to overnight millionaires.

Dubbed Commercial villages, the model organizes farmers into small clusters of 20 to 30 households before forming larger groups of over 300. Buying and selling in bulk, the groups are able to increase their bargaining power with traders to obtain better prices for their onions, and purchase inputs and quality seeds more cheaply. The groups are also encouraged to adopt better farming practices and develop direct links with traders in order to maximise their income. To date, more than 2,000 households in Endarasha are of Nyeri, one of the pioneers of the model, have joined a commercial village.

Farm Concern International, FCI, which spearheads the program trains farmers on how to price, promote and distribute their onions and how to select reliable buyers. As a result, commercial villages are now in direct contact with traders in Karatina, Nakuru and Nairobi. By keeping up-to-date with the latest market prices, farmers have increased their incomes from an average of Sh5-10 to Sh35-40 per kilogramme. "I used to work on

people's farms as a casual labourer and life was difficult," recalls Patrick Nginyi, chairman of the Gikuno commercial village. "But when this project was initiated, my life changed for the better."

The enterprising commercial villages have also facilitated farmer-trader linkages by identifying 'onion market hubs'. "We select different towns and cities in Kenya and we build the capacity of a number of informal traders," explains Mwangi Stanley from FCI. These traders are organised into an association and then given training on supply-chain management, financing, and post-harvest management of onions. They are then linked with representatives from the commercial villages. "We also identify other hubs like supermarkets and help link them to commercial villages," adds Mwangi.

Establishing partnerships with key local businesses and government agencies, in order to provide support services, has been an important part of the project. "Establishing partnerships with the private and public sector is the key to development in the region," Mwangi observes. Under the guidance of government extension officers, and with support from private seed and chemical companies, commercial village members have been given training on production, pest control, soil testing, and the appropriate use of fertilisers and agrochemicals. "I had no idea what chemicals to use on my farm," Stephen Wachira remarks. "Even if I was sold chalk I would not have known. But after Farm Concern trained us, we now

know the best chemicals."

Through demonstration plots and on-farm training, farming practices have improved and the average yield of onions per hectare has doubled to 14 tonnes. "We started field demonstration plots to show the farmers that with the hybrid seeds they would reap bigger profits," recalls Mr Ndung'u from FCI. Previously, farmers had been using a low yielding and poor quality open pollinated variety because it was cheap.

For Waithaka, the chairman of Kinyaite commercial village, the adoption of hybrid seeds has contributed to his increased income. "I am now aware of the right kind of seeds and I have also identified a certified supplier where I and my group purchase our inputs," he remarks. With increased incomes, farmers involved in the commercial villages have seen their standard of living rise significantly. "I have now been able to acquire my own land and also educate my children while opening many more small business ventures," declares Anne Njoki, from the Kabati commercial village.

But with poor infrastructure and a changing climate, challenges still remain. "Climate change is a real challenge because onion production is rainfed and rainfall in the region has decreased," Mwangi explains. "The farmers have increased production and their income, but if they had sufficient rain they could earn much more." As a result, many involved in the project

Cont...

Onions give farmers competitive

bargaining power

company. Through an array of

have been using their increased incomes to diversify into keeping dairy goats, bees and producing biogas as insurance if the rains fail.

Despite these challenges, the commercial village approach has successfully increased yields and incomes for the Endarasha onion farmers. Consequently, the model has been promoted across ten African

countries for improved marketing of over 50 different commodities including grains, fruits, vegetables and spices. "We would like to identify other parts of Africa where we can scale up the project," Mwangi asserts. "The aim is to establish commercial villages that are sustainable, viable and that can give even higher returns than we have already seen." ¬

In a bid to deepen awareness on the importance and adoption of agribusiness among the youth, Plant A Fruit an agricultural organization with an interest in the young people is now focusing on primary and secondary schools to initiate orchard development and management.

This comes as a boost to the economy in the fight against unemployment as the group positions itself towards shifting the youth’s mindset from the inaccessible with a view to ultimately help in providing income for livelihoods and contributing to Kenya’s food security. Having benefited and enjoyed the fruits of the now defunct school agriculture organizations like the famous K2 Club of the 1990s, Achiki Mayieka who is also the team leader of Plant A Fruit noted that there was need to ensure that the young minds are brought up with passion for agribusiness. “We believe each and every school should be a food growing school.

are hard hit by food insecurity. Over 500 pupils from two primary schools in Nairobi are now benefitting from the group’s effort. The group has managed to plant over 150 and 100 fruit seedlings at Kariobangi North Primary school and at Our Lady of mercy in Shauri Moyo respectively.

The number of fruit seedlings planted in an institution basically depends on the size of land available. The group plants the seedling at a free cost with an aim of encouraging the young ones into farming and agribusiness so long as the school authorities provide land. In order to realize success, the group does not force any pupil in the respective institutions to partake in the project. “These young pupils are the real change agents for they have the potential of converting small ideas into mass movements.” The group which is also nurturing nurseries fruit seedlings has over 10,000 seedlings of about 18 varieties including pears, oranges, straw berries, and apples among others.

The group aims to impact over 20 public schools in Nairobi before rolling out at other parts of the country and Achiki explained that, they first want to ensure success in the city because this is the point where many youth demonize anything to do with agriculture forgetting that it’s the source of all food stuffs they rely on. “Talk about any topic of agriculture or introduce yourself in a conference in the City that you are a farmer or earn a livelihood from farming, no youth will want to interact with you or request for your contacts unlike if one introduces himself as an I.T expert with a famous company.” Cont...

This project intends to implement fruit orchards and food growing in public primary schools and give practical agribusiness and environmental education to young students so that they can actively engage in agriculture and be better stewards of the environment,” explained Achiki. The project which started nine months ago is focusing on all public schools with ideal land for the establishment of the orchards. Achiki noted, “We are liaising with all potential public schools in Nairobi County so as to set up demo orchard farms that pupils can find pride in and borrow a leaf hence encouraging the deepening of agribusiness in the society.” The group liaises with area chiefs, school officials and other opinion leaders in the area before setting up the project in an institution.

Achiki noted that their main focus is currently on the public primary schools with arable land and access to water which is ideal for setting up the demo orchards especially from regions which

‘Plant A Fruit’ births ‘Agripreneurs’ among school children

Young Kenyan Farmers Engage On Social Media

converting small ideas into mass

anything to do with agriculture

contacts unlike if one introduces

According to him if they manage to succeed in establishing the demo farms in Nairobi schools, it will be a huge milestone because before one thinks of other parts of the country, you first have to conquer your surroundings. Therefore since they are based in Nairobi, the youth in the city have to succeed in this then the rest of the country most which are rural areas will be a walkover as they shall always encourage the participants to embrace the initiative because city youths will be already benefiting from it.

Achiki and his group aims at establishing demo farms in all the 47 counties in the country by the end of next year and ensure that the young generation finds pride in agribusiness right from the onset of their education life. Achiki noted, “We have divided

our projects into two phases and the first phase which we have already started is establishing the demo farms in almost all public schools and the second phase is to incorporate the project as an agribusiness co-curricular activity that is optional and taught at the schools.”

He added that to ensure such a success they are working with all stakeholders in the education industry to make the dream a success. The students are expected to use the skills acquired to extend food growing and fruit tree planting in their homes and communities. Students will also learn a wide range of business and leadership skills, practical and personal skills, including observation, planning, problem solving, and responsibility.

“Through the initiative, we hope that students will soon be able to develop fruit tree nurseries for reforestation and income generation.”

Kenya has recorded the highest levels of unemployment since records began, with the current employment rate standing at a staggering 54 percent. 70 percent of these are young people between 17 and 35 years. Achiki and his team noted that the government can not only be left to find a solution for unemployment problem with such a huge magnitude. “Everyone in the society needs to be part of the solution and since the country has an arable size of land that is over 80 percent we believe that the solution to the prob-lem largely lies in agriculture hence our concerted efforts focusing on nurturing agribusiness youths through schools.” ¬

expert, and is funded by the Rockefeller Foundation. Its aim is to draw more young people into farming, help them learn from each other, trade, and overcome the challenges of agriculture together.

Daniel Kimani, one of the Mkulima Young Champions, is a typical example of the new breed of Kenyan entrepreneurs who are starting to see the opportunities farming offers. A trained engineer, he set up an aquaponics system to rear fish and grow strawberries. Now he earns

KSh300,000 (2,600€) a month from it. His system is resourceful and ingenious. Ammonia produced by the fish is filtered out of the ponds through stone-filled towers, providing free fertiliser and water for the strawberry plants that grow on them. Daniel is one of those proving to a generation of Kenyans that technologically-enabled farming is clever, lucrative and not necessarily labour intensive. Since Mkulima Young started featuring champion farmers like Daniel and others, Joseph

Farming is getting an image ‘make-

over’ in Kenya to make it more attractive to young people. A new website and the imaginative use of social media are helping to change attitudes about farming as a career, encouraging young Kenyans to see it as a profitable profession.

Until recently, many young Kenyans saw farming as an unskilled, unrewarding profession, suitable only for the retired or the uneducated. Now, however, a group of determined young farmers are challenging traditional prejudices and trying to explain the attractions of farming as a profession. They are the ‘Mkulima Young Champions’ and have become figureheads for a digital initiative to change the way farmers are viewed by young people. Using a range of technologies, they are proving that farming in Kenya really is a profitable 21st century career path.

The group – Mkulima means “farmer” in Kiswahili – was founded by Joseph Macharia, a farmer and agricultural

Macharia has noticed an appreciable change in young people’s attitudes.

“By having Mkulima Young Champions who are educated and young,” he says, “the attitude of the youth [towards agriculture] has changed, from viewing it as an activity for the old, to a profession that they can mint millions from.”

The initiative is about far more than publicity, though. Using radio, SMS and social media, it engages young Kenyans to discuss agricultural topics. Listeners to radio programmes can give feedback online, helping to shape the content and making it more relevant.

Meanwhile, Mkulima Young’s Facebook page, which opened in January 2013 and already has 20,500 followers, has become a vibrant place where young people post links, photos and videos, ask questions, discuss issues and interact with other young people who are passionate about agriculture. ¬

Streamlined Systems Ltd.

would like to wish our Clients, Staff

and Customers a very Happy

Christmas and a

Happy, Healthy

and Prosperous

2014

We wish to thank the following sources for their contributions to the articles contained in this magazine:

FarmBiz Africa/SciDev.net / The East African / Africa Agriculture News / Africa Renewal /

Ethiopian Radio & Television Agency / CIO East Africa (Nairobi)

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