Kenya Fights to Wrestle Back EU Market
Horticultural exports are set for an additional standard from next month in a new development by the country to reverse the dwindling share of her produce in the 28-member European Union. Fresh Produce Exporters Association of Kenya chairman Apollo Owuor said the new standard – KS 1758 (Part Two) – applies on fruits, vegetables and herbs.
The standard, Owuor said, will bring all exporters and handlers under a uniform, standard practice and will be the basis on which export permits will be issued. “This will essentially eliminate the possibility of any rogue practice and lack of proper documentation that has in the past led to expensive interceptions at the market entry in the European Union,” he told said.
FPEAK and Kenya Flower Council, which represents large-scale flower producers, have also partnered to launch the Kenya Horticulture Council in a bid to help the horticulture industry jointly articulate sector concerns. KFC and FPEAK have previously dealt with sub-sector matters separately, leading to delays in responding to arising issues as well as increased costs, the interim chair of the Kenya Horticulture Council Richard Fox said. Owuor emphasised that the council is not a merger between the two organisations, but a joint entity which will address issues of mutual interest. The new body has been set up with technical and financial support from USAid through the Kenya Agriculture Value Chain Enterprises. Kenyan exporters have since 2012 faced challenges in the EU over excess pesticides and quarantine pests which has cost the country billions of shillings in export losses.
“We have spent the last five years developing systems to ensure that the challenges of excess pesticides and presence of quarantine pests does not haunt the industry again,” Owuor said. Latest data indicates that the sector earned Sh102.5 billion in foreign exchange earnings in 2016, the second largest after tea, with a steady growth of 10 per cent despite the challenges. The sector’s contribution to the country’s gross domestic product – national wealth – is estimated at Sh200 billion.
Uganda: Flower Farms Licensed as Free Zones
uganda Free Zones Authority (UFZA) has issued two developer’s Licences to M/s Fiduga Limited and M/s Royal Van Zanten Limited. The companies are meant to develop Free Zones in Mukono and Mpigi Districts in Uganda.
A Free Zone is a special designated area where goods introduced into the area are generally regarded, so far as import duties are concerned, as being outside the Customs territory. These include Export Processing Zones or Free Port Zones.
Ms Evelyn Anite, the minister of State for Privatisation and Investment, speaking during a field tour at Nsimbe estates recently, said the two companies that are already in the business of exporting, will further contribute to towards addressing the export gap by investing up to a tune of US$ 365 million (about Shs1.3 trillion) by 2021. “This feeds into the Government’s Vision as enshrined in the National Development Plan II and Vision 2040 which are Frameworks aimed at ensuring that Uganda attains Middle Income Status,” she said.
Uganda Flower Exporters Association (UFEA)’s executive director, Ms Juliet Musoke, said: “This year we exported more flowers compared to the previous year 2015.” In 2015 the country through UFEA members exported 6,300 tonnes of flowers worth $27.5 million (Shs99 billion). Ms Musoke also said in the year ending 2016, UFEA exported more than 6,500 tonnes of flowers, 200 tonnes more than what was exported the previous year.
The chairman board of directors of UFZA, Eng Frederick Kiwanuka said: “Licensing these two companies today brings the number of licensed Free Zones in Uganda to five including M/s Arua SEZ Limited which is setting up a Special Economic Zone in Arua District., M/s Uganda Wood Impex Limited in Kalungu District and M/s Nilus Limited in Jinja Municipality.”
THE BENEFITS
M/s Fiduga Limited and Royal Van Zanten Ltd Fiduga Ltd projects are likely to hire 927 workers while Royal van Zanten Ltd anticipates to create 1,625 jobs by 2021, majority Ugandans. This will mean enhancement of the skills of the local community and improving their social economic standards
