On August 20, 2024, the Center for Food and Land Use Research at Kyiv School of Economics (KSE Agrocenter) organized the seminar «Partnership of Ukraine and African countries in agriculture: options for cooperation with East African countries».

At the beginning of the seminar, Dr. Pavlo Martyshev, researcher of KSE Agrocenter, and Dr. Mariia Bogonos, head of KSE Agrocenter, welcomed the speakers and guests, and also emphasized the importance of Ukraine’s cooperation with East African countries. Despite the relatively low indicators of trade with this region compared to North Africa, its importance for Ukrainian food exporters is growing. This is explained by the food crisis caused by the war in Ukraine, as well as the launch of the humanitarian program Grain from Ukraine, the main focus of which is East Africa.

Artem Gudkov, director of the Ukrainian-African Trade Mission, emphasized that the main task of the trade mission is to create an integrated platform for establishing close connections between Ukrainian business and African partners. The key functions of this platform may be the provision of analytical research and consulting for Ukrainian businesses on entering the African market, as well as the creation of a delivery center and logistics hub for Ukrainian products in African countries. Mission offices are currently located in Nigeria, Kenya, and Tanzania. In the coming years, it is planned to open representative offices in Ethiopia, Angola, the Democratic Republic of Congo, and Ghana. Further development of the trade mission involves the creation of five centers aimed at developing the partnership between Ukraine and African countries: 1) economic center; 2) research center; 3) educational center; 4) cultural center; 5) investment center.

Rita Polishchuk, partner of the company Global Ukrainian Distribution, Investment and Trading, spoke about the potential of the Kenyan market, which is one of the fastest growing markets in Africa. This is explained by successful economic reforms, investments in infrastructure and diversification of the national economy. Agriculture in the country accounts for 21% of the national GDP and 40% of the workforce. At the same time, the agricultural sector has a number of problems, including a low share of land suitable for farming and low productivity. Supporting the agricultural sector is one of the priorities of Kenya Vision 2030, a strategic plan aimed at transforming the country into a middle-income country. In particular, the plan envisages productivity growth and increasing the export of certain goods. The priority sectors of support in the plan are the production of corn, tea, coffee, dairy and meat products. Cooperation with Ukraine in agriculture can be based on three main vectors: 1) technology transfer, in particular, precision farming systems and irrigation systems; 2) joint investment projects in the food industry; 3) export of agricultural machinery and equipment from Ukraine.

Dr. Christopher Fomunyoh, the regional director of the National Democratic Institute of International Relations (Washington), as well as the goodwill ambassador of the humanitarian initiative Grain from Ukraine, pointed out the importance of this initiative for the development of diplomatic relations between Ukraine and African countries. First of all, Ukraine is in a unique position, as it can become the first country to conduct agricultural diplomacy with Africa. At the same time, the existing diplomatic relations of the countries of the Northern Hemisphere with Africa do not prioritize agriculture. Instead, their trade is formed mainly on the basis of post-colonial relations. In addition, agriculture is one of the priorities of the integration of countries within the framework of the African Union. The member countries of the union have signed a resolution to allocate at least 10% of their own budget to investments in the agricultural sector. For the total African market of 1.4 billion people, such investments in the agricultural sector are justified.

As for the Grain from Ukraine program, it actively supplies food to the starving in East Africa. During the last two years, some of the East African countries have become beneficiaries of the program. The total volume of deliveries to Ethiopia, Somalia, Sudan and Kenya amounted to approximately 250 thsd. tons of grain. In addition to the humanitarian component, Grain from Ukraine is a platform for institutionalizing cooperation between Ukraine and African countries.

Vladyslav Vlasiuk, adviser at the Office of the President of Ukraine, pointed out that at least 200 thsd. tons of Ukrainian wheat was sent to African countries as part of Grain from Ukraine initiative. In addition, Ukrainian flour, corn, peas and sunflower oil are actively supplied to the region. The program receives support from about 30 donors, including countries and international organizations. The general organization of the program is carried out with the participation of the UN World Food Program. An interesting factor is that Russia has also started its humanitarian program by sending two consignments of food to Mali and DR Congo. Thus, the Russians recognize that Grain from Ukraine is successful and strengthens Ukraine’s diplomatic position on the African market. However, sometimes deliveries are not viewed positively by local governments due to Russian influence on local leaders. Currently, the program is expanding the geography of supplies with new countries, in particular Mozambique, Malawi, Zambia.

Dr. Heinz Strubenhoff, an independent consultant of the European Commission and the European Investment Bank, cited cases regarding the economic feasibility of cooperation between Ukrainian farmers and the East African region. The first case concerned Tanzania, where investments were made in a mill that processes Ukrainian wheat. This mill could not process local raw materials, as local farmers do not grow wheat, and the experience of Ukrainian colleagues is important to them. To transfer such experience, there should be an intermediary such as the Ukrainian-African Trade Mission. In addition, embassies usually have agricultural attachés who help strengthen cooperation between countries in the agricultural sphere. The second case related to the visit of the Ukrainian delegation to Ethiopia. A comparison of the poultry sector of both countries showed that Ukraine can produce poultry meat at a cost of 2-3 dollars per kilogram, while the cost in Ethiopia was 7-8 dollars per kilogram. Thus, poultry farming in Ethiopia can significantly increase productivity due to consultations from the Ukrainian colleagues.

The third case indicated common problems of Ukraine and Africa in economic cooperation with the EU, which sets high quality and safety standards for food products. For example, one of the investment projects in Uganda to grow coffee for export to the EU was unsuccessful due to the large number of small farmers involved in the project. The requirements of the European side regarding the traceability of products, including the geolocation of coffee plantations, significantly increased the administrative costs of the project.

Dr. Strubenhoff also gave two recommendations for strengthening Ukraine’s collaboration with East African countries. The first is the expansion of the number of embassies in African countries. The second recommendation concerns the development of digital farming through digital finance. A successful example of such a financial system is Kenya, where even in very remote regions, farmers are connected to the M-PESA mobile money system and can receive loans remotely.

Dr. Abule Mehare from the Ethiopian Economic Association indicated that more than 10 million of households in Ethiopia in need of food aid. Meeting their needs requires substantial reforms in agriculture, and Ukraine has experience of such reforms. Ethiopia has a significant food shortage, with the domestic price of wheat rising by more than 75% over the past three years. This creates opportunities for local farmers to increase production.

Dr. Makarius Mdemu from the University of Ardi, Tanzania, emphasized that the agricultural potential of the country can be opened up through the introduction of new lands into cultivation and the consolidation of producers. The sector employs two-thirds of the country’s population, with 85% of food produced by small farmers and households. Another driver of increased productivity is irrigation, which could potentially cover 29 million ha. Currently, 90% of the agricultural sector is not irrigated and is highly dependent on rains.

In terms of food security, Tanzania has shortages of wheat and millet, as well as sugarcane. The government actively supports the production of some products, including sugar cane and sunflower. The problems of the local agricultural sector are low productivity, significant price fluctuations on the domestic market, inconsistency of farming practices with agro-ecological zones, climate change, underdeveloped irrigation, and weakness of agricultural advisory systems.