A new regional scheme is set to unlock the potential of agribusinesses within the East African Community (EAC) by investing €40 million (approx. Rwf51 billion) to this end, according to information from the regional bloc and the European Union.
The initiative called EU-EAC Market Access Upgrade Programme (MARKUP II), is funded by the EU.
It was launched in Arusha by the EAC and the EU delegation in Tanzania on October 3.
According to the EU delegation, MARKUP II will strengthen EAC's small agribusinesses through enhanced regional and international trade in close partnership with the East African Business Council, EAC Partner States, business support organisations, and local institutions.
It is implemented by the International Trade Centre (ITC) in collaboration with the EAC Secretariat.
A statement from the EU delegation to Tanzania and EAC indicates that building on the successes of MARKUP I, this new phase will focus on EAC priority sectors including avocado, cocoa, coffee, essential oils, French beans, horticulture, leather, packaging, spices, and tea - with an emphasis on processing, value addition, diversification, investment, and export linkages.
Under MARKUP II, the inclusion of packaging as a standalone and crosscutting value chain is a new feature, which addresses the unique challenges facing micro, small and medium-sized enterprises (MSMEs) in the EAC.
The initiative will take into account the inclusion of women and youth in trade, while a regional Steering Committee chaired by the EAC Secretariat, which will include representation from relevant national ministries, will provide overall direction for the programme, officials indicated.
Speaking at the launch of the initiative, the Ambassador of the Delegation of the EU to Tanzania and the EAC, Christine Grau, said: "MARKUP II demonstrates the EU's commitment to supporting East African companies, fostering sustainable growth, and creating decent job opportunities."
EAC Secretary General Peter Mathuki, underscored the importance of the initiative by highlighting the outcomes of its previous phase.
He indicated that MARKUP programme (phase one) contributed immensely in value addition through improved coffee processing, coffee cupping certifications, resource efficiency and circular production in the tea and coffee sectors in the region.
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"About 700 enterprises specifically MSMEs in the region were supported through MARKUP phase I to improve their business operations and export. International transactions worth more than $10 million were generated and MSMEs accessed finances worth $9 million," Mathuki said.
The Executive Director of the International Trade Centre, Pamela Coke-Hamilton, said the joint efforts of the centre, the EU and EAC "to strengthen the region's agricultural and horticultural sectors will help small businesses become more competitive on the international stage and help deliver on sustainable development priorities for the region and the continent."
Data from the EU show that the notable contribution of MARKUP I include remarkable growth in EAC exports. This is the case of coffee exports to EU markets which more than doubled from €488 million in 2018 to €1.1 billion in 2022, and avocado exports growing from €85.5 million to €112.4 million.
Additionally, 37,819 small and medium enterprises were reached in this first phase and were empowered to become more competitive in international markets.
Meanwhile, EAC's total exports to the rest of the world amounted to $20.1 billion in 2022, while its imports from the rest of the world exceeded $53.8 billion. These figures indicate that the region is predominantly a net importer, resulting in a high trade deficit.
