Kenya is among three East Africa states set to receive part of the $2 million (Sh233 million) grant from TradeMark Africa to boost grain product exports.
The three-year grant is part of a $75 million (Sh12.1billion) five-year partnership from the US Agency for International Development’s Economic Recovery and Reform Activity programme delivered by TradeMark Africa but funded by Feed the Future.
Trade Mark Africa CEO David Beer said the funding will strengthen the competitiveness of export-oriented staple food value chains in East Africa.
East Africa's immense potential for food grain production and trade has been hindered by low production rates, poor post-harvest management, and climate pressures.
The challenges contribute to the low competitiveness of its staples in regional markets, reduced cross-border trade, production deficits, and post-harvest losses that threaten the region’s food security.
According to Beer, this facility with East Africa Grain Council will directly tackle the challenges, remove trade impediments and build grain exporters’ capacity in the three countries across export value chains such as maize, beans, millet, sorghum, and rice.
“This includes spearheading innovative strategies such as Grain Business Hubs, or G-Hubs. These are operated by farmers, who will leverage technology to improve grain quality and drive up trade,” said Beer.
A major impediment to grain trading across the region is businesses’ ability to comply with international standards.
EAGC will support over 80 SMEs to successfully meet Sanitary and Phytosanitary (SPS) measures - which regulate the health of animals and plants that are traded.
It will also observe Standards Quality Infrastructure (SQI) requirements that govern quality, health and safety systems, and environmental conservation. These are critical to their ability to export.
"By fortifying grain business hubs and enhancing the capacities of SMEs, we are building a foundation for sustained growth," EAGC executive director Gerald Masila.
EAGC will also establish an information hub to help shape national and regional food balance sheets by providing real-time data and insights.