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Banana Production Needs 20 Million Plants

World Palm Oil Exports Seen Falling for First Time in 16

Mombasa Auction Tea Prices At All Time Low

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COM-WATCH

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HIGHLIGHTS

CONTRIBUTORS QR CODES

Cashew Processing In Ghana Under Threat P.4

Uganda UCDA CoffeePolicy Launch P.15

Ghana To Fall Short Of 2013/14 Cocoa Target P.10

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ISSUE #32 | JANUARY 2014THE AFRICAN COMMODITY REPORT Please consider the environment

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Cool Logistics AfricaThe 3rd Cool Logistics Africa conference is to take place in Cape Town, South Africa on 4-6 March 2014. Under the theme “integrating global and regional perishable supply chains”, the pan-African conference will bring together regional and international members of the perishable supply chain to discuss the challenges and their solutions. Key topics will include how exporters and importers can capitalise on the growth opportunities of Africa perishables trade; the outlook for maritime and air transport; port and hinterland cold chain infrastructure; and how to bridge the gap between agriculture and logistics.

DELMAS Reefer SpecialismDELMAS offers customers a specialist reefer desk providing total refrigerated transport solutions. The desk provides one entry point for both our customers and agency network, offering expertise on reefer business and the African market.

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We closely monitor the trade seeking innovative products, quality of service, high end equipment and fine-tuned yield management.

For more information contact your usual DELMAS agent or visit our website. Visit Our Reefer Page

GENERAL NEWS

COMMODITY WATCH WWW.DELMAS.COM

GENERAL

01

GENERAL NEWS

BANANA & PLANTAIN

GENERAL

Chiquita Endorse 100% Sustainable Bananas By 2020Chiquita has signed up to the Sustainability Initiative for Fruit and Vegetables [SIFAV] aiming for 100% sustainable sourcing of its bananas.

Co-funded by IDH [www.idhsustainabletrade.com] the Sustainable Trade Initiative is a coalition of international retailers and traders aiming to make imports of fruits and vegetables from Africa, Asia and South America 100% sustainable in 2020.

Other partners are: Agrofair Benelux B.V, Albert Heijn B.V., C1000, SuperUnie, Eosta, Fairfields, Jaguar, Jumbo, Lidl, Nature’s Pride, Staay Food Group, The Greenery, Van Oers United, Special Fruit, Bakker Barendrecht, Olympic Fruit en Fair and Organic Trading B.V. [Fresh Plaza 17/12/13]

CAMEROON

Banana Production Needs 20 Million Plants The African Centre for Research on Bananas and Plantains [CARBAP www.carbapafrica.org] notes annual demand for banana and plantain production in Cameroon now stands at 20 million plants.

To meet this growing demand it has launched a new multiplication technique to be able to produce plants from stalk fragments which produces quality plants in high quantities in relatively little time. Using this technique, it is possible to annually produce 10-20 plants using a single stalk.

In its strategic plan CARBAP aims to cultivate strains that can produce 40 t/ha as opposed to the 7 t/ha currently produced. CARBAP umbrellas 14 countries in Central and West Africa. [Business in Cameroon 04/12/13]

COMMODITY WATCHCOMMODITY WATCH WWW.DELMAS.COM

BANANA & PLANTAIN

02

GENERAL

Raw Cashew Prices Surge Despite Lackluster KernelRaw cashew nut prices have surged since September-end despite the kernel market being quiet and steady. At the same time, the trade expects the kernel market to rule firm early next year. West African raw cashew, being traded at US$750-900 a tonne during September-October, has increased to US$950-1,150 due to strong demand from small and medium processors in Vietnam for spot cargo. Tanzania raw cashew, which started trading at US$1,250 before auctions, surged to US$1,400-1,425.

After touching a low of US$3.10-3.20 a lb [FOB] in the first half of October, price for W320 has moved up to US$3.30 during November. Offers were W240: US$3.75-3.90; W320: US$3.30-3.45; W450: US$3.00-3.15; SW320: US$3.00-3.10; SW360: US$2.80-2.90; Butts: US$2.50-2.55; Splits: US$2.20-2.35 and Pieces: US$1.50-1.60.

Another trigger for higher kernel prices in early 2014 would be buyers in traditional markets coming in to buy in Jan/Feb for first half shipments to replenish their positions on account of good sales in the last quarter of 2013. As availability is expected to be low, they may have to pay higher prices. If demand in the first quarter is slow, then markets, both RCN and kernels, will continue in reasonably calm waters. [Business Line 17/12/13]

Fair Trade Campaign Urges EU To Set Up Cashew RegulationThe EU Commissioner for internal markets suggested a case may be taken up against the industry as workers are faced with unfair trading practices by supermarkets. The current economic model used earns £1 from a bag of cashews sold in shops for £2.50 while the factory worker makes 3p per day. It is suggested that with its premium price, the cashew nut industry could be a real opportunity for Africa and India, which globally generates US$4 billion. [Greenmed 30/11/13]

Cashew Market Information SourceThe African Cashew Alliance [ACA] is developing a mobile based application, AfricasheW210, which will be available at the beginning of 2014. The current Market Information System [MIS] is available on the ACA website and via its weekly AfricashewSpilt report. This provides analysis and general information on the cashew market, updates on cashew prices, and the latest developments on cashew-industry related laws in producing countries. which provides information on prices, production volumes, market trends and developments as well as basic ocean freight rates. Since June 2013, ACA has collated other market data such as production, processing, export and socio-economical trends. [ACA 14/11/13]

GAMBIA

US$17.3M Put Aside For 2013 Groundnut SeasonThe Gambia Groundnut Corporation [GGC] has assigned US$17.3 million [D660 million] for this year’s groundnut trade season. This amount is meant for the purchase of shelled groundnuts from farmers. GGC has prepared a budget target of 40,000 MT of groundnut for the whole season. Last year the corporation bought over 3,000 MT of cashew nut.

GGC is also in close contact with the Gambia Food Safety and Quality Control Authority [GFSQCA] to address issues of Aflatoxin during the trade season and encouraged farmers to sell their produce in time to avoid being contaminated. The GGC also discourages the practice of credit buying to ensure that farmers benefit where possible and will introduce fertiliser incentives to distribute to farmers on both spot buying and credit basis. [Daily Observer 18/12/13]

Groundnut Season Begins - Producer Price Pegged At D14,500The Agribusiness Services and Producers' Association [ASPA], the groundnut inter-professional body, announced the official groundnut marketing season began on 16/12/13 and will end on 30/03/14. The groundnut producer price is pegged at D14,500/MT farm gate which takes into account the world market price.

However the Groundnut Corporation [GGC] has since decided to review the price upwards to a minimum producer price of D15,250 and if the farmer is able to take his produce to the depot, he will benefit D16,500 per ton to include the farm gate price and the buying commission. [Daily Observer 18/12/13]


CASHEW & GROUNDNUT

03

Ghana Cashew Processing In Ghana Under ThreatIvorian authorities’ ban on exports of raw cashew nuts through Ivorian borders is expected to impact processing companies in Ghana affecting operational cost and pushing up prices of processed cashew. Early this month, Cote d’Ivoire announced a ban on export of raw cashew nuts and cotton through its border posts. The ban, announced in 2012, gave cashew processing companies in Ghana some concessions to import through their borders. But now concessions are withdrawn with exports only be done through the sea ports of Abidjan or San Pedro.

However processors have strategically situated their factories in major producing towns in the Brong Ahafo Region for the close proximity to the supply of raw nuts as well as the import through the borders of Cote d’Ivoire and Burkina Faso to supplement the quantity of the crop produced in Ghana. If those facilities have to import through the sea ports, costs will go up due to additional transportation from Takoradi and Tema ports to the Brong Ahafo Region at an extra cost. Finished products from Ghana would therefore become more expensive on the local and international market and thus uncompetitive.

Ghana is fast becoming a hub for cashew processing. Presently, there are over 12 large and small-scale processing companies in the country, with over 27,000 MT processing capacity. Early next year, the largest processor in Brazil will open its 35,000 MT plant. That means installed processing capacity will exceed the current production levels of raw nut in Ghana, which stood between 40,000mt to 50,000mt. Ghana also exports an average of 150,000mt of RCN annually. The industry therefore relies heavily on RCN imports from Cote d’Ivoire, Burkina Faso and Togo to supplement its processing and export volumes, with Cote d’Ivoire being the largest import source. Immediate intervention by the government is needed to release a stimulus package for the industry to up production capacity from 50,000 MT to 200,000 MT in the next 5-10 years. Once this is achieved, Ghana will not have to depend so much on other countries supplies.

Ghana also serves as the headquarters of the African Cashew Alliance [ACA]. Also, the African Cashew Initiative [ACI], a German International Cooperation-[GIZ] led cashew project funded by the Bill and Melinda Gates Foundation and the German government in five African countries including Ghana, is headquartered in Ghana. The ACA intends to engage the government to intervene by opening dialogue with the Ivorian government on establishing some cross border trading modalities instead of implementing the outright ban of cross border trade of RCN. [Ghanaweb 16/12/13]

CASHEW & GROUNDNUT


CASHEW & GROUNDNUT

04

KENYA

Equatorial Nut Processors Gets ACA SealEquatorial Nut Processors [ENP] became the 5th kernel processor in Africa to finish the ACA Quality and Sustainability Seal Program. Located in Muranga, Kenya, ENP joins Jungle Nuts Ltd as the 2nd East African processing factory to be ACA Seal approved. [ACA 14/11/13]

MOZAMBIQUE

Cashew Nut Production May Be Lower Than 95,000 Ton Projection The National Cashew Institute [INCAJU] noted cashew nut production in Mozambique this year is not likely to reach the forecasted 95,000 tons. Production is expected to be around 90,000 tons. Factors such as disease, climate change and political tension have had a negative effect on the 2013/14 season. The weather in the North during blossoming and fruiting periods was not favourable. [Macauhub 02/11/13]

Nampula Province To Get Cashew Research CentreA cashew research centre is to be installed in Nassuruma, in Mozambique’s Nampula province, to drive research and studies into the cashew chain. The National Cashew Institute [Incaju] noted in the last few years, cashew production has faced a number of problems including climate change, disease and price volatility on the international market yet the sector continues to attract investment. [Macauhub 04/12/13]

ZAMBIA

USAID Invests US$1.8m In Groundnut PlantThe United States Agency for International Development [USAID] has invested US$1.8 million under the Development Credit Authority Agreement [DCAA] for the expansion of Jungle Beats Limited groundnuts processing plant in Lusaka.The development is expected to double production and purchase of groundnuts from about 11,000 small-scale farmers across the country. The new plant is expected to generate more than US$6 million from exports of between 50,000 and 100,000 tonnes of groundnuts to South Africa annually within the next 3-years. [Zambia Times 04/12/13]


CASHEW & GROUNDNUT

05

ANGOLA

Agriculture Sector to Produce About 20 Million Tons of Cassava in BiéBetween 2013-2017 the Agriculture and Rural Development Ministry expects to produce 20 million tons of cassava in central Bié province. The sector expects to produce 2.5 million tons of cereal, 1-million tons of grain and 1.5 million tons of potato annually. [Angola Press 07/12/13]

NIGERIA

Nigeria Expects High Revenue From Cassava ProductionNigeria is expected to receive greater revenue from cassava production with output doubling in the last year. The National Root Crop Research Institute [NRCRI] has resolved to drive the nation’s agricultural transformation policy by not only intensifying the research activities of the institute but also practicalising the business aspect of the transformation agenda. NRCRI is to establish a holding company as a business unit that would generate revenue by setting up a cassava flour mill, bakery for making cassava bread.

Cassava output has risen from 35 million tonnes in 2012 to 95 million tonnes in 2013 while 3 million ha of cassava farms have already been cultivated in 2013. It is projected that the nation would save N625 billion in foreign exchange from the implementation of the federal government’s policy of 20% cassava substitution in bread and other confectioneries by the year 2014.

There are 43 cassava varieties developed by the NRCRI in collaboration with the International Institute for Tropical Agriculture [IITA]. Pro Vitamin A, which is resistant to pests and diseases, has a high yielding capacity of between 35-40 t/ha, compared to the traditional varieties that produce between 10-20 t/ha. [This Day 14/12/13]

World Bank to Support Kogi Cassava Processing ZoneKogi State with assistance from the World Bank is to set up a US$700 million Cassava Processing Zone in Alape following a trade mission. The project supports the Agricultural Transformation Agenda. The government has given access to land and resolved issues related to land right to encourage the project. [This Day 03/12/13]

Nigeria Commits N4.3 Billion To Cassava Flour ProcessingThe government is spending N4.3 billion [US$27.6M] on the upgrading of small Cassava flourmills and processors. The fund is to be managed by the Bank of Industry [BOI]. It is also aimed at providing a ready market for Cassava farmers. N1.05 billion will be used to upgrade the capacity of 35 existing small scale flourmills.

The provision is part of the government’s plan to diversify the economy which is hugely dependent on crude oil revenue. With over 81M hectares of land available for farming, the government is looking to make agriculture the mainstay of the economy. Nigeria is currently the highest producer of the crop which has over 40 verities that can be produced in 34 out of the 36 states. [Channels 21/12/13]

CASSAVACOMMODITY WATCHCOMMODITY WATCH WWW.DELMAS.COM

CASSAVA

06

GENERAL

ICCO Sees 2nd Year Of Cocoa DeficitDemand for cocoa beans threatens to outstrip supply for a second year according to the International Cocoa Organization [ICCO]. Demand exceeded production by about 160,000 MT compared with an earlier estimate of 52,000 tons for the 2012-13 season blamed on poor harvests. Global cocoa output in the 2012-13 season stood at 3,931 million tons, while demand is forecast at 4,091 million tons. World cocoa demand could reach 4.4 million tons by 2018. [Market Watch 08/12/13]

Asian Chocolate Eaters Drive Record Cocoa-Output DeficitGlobal cocoa supplies are headed for the longest production shortfall in more than 5-decades as chocolate demand surges in Asia. Cocoa use will top output by about 70,000 MT in the 12 months started Oct. 1 and deficits will persist through to 2018, a 6-year stretch that would be the longest since the data began in 1960 according to the International Cocoa Organization [ICCO]. Prices may rally 14% to US$3,200 a ton by the end of 2014.

Global sales of chocolate confectionary will gain 2.1% to a record 7.3 million tons next year, after a 2% gain in 2013. In the Asia-Pacific region, home to half the world’s population and 12% of chocolate demand, each person is predicted to eat 200 grams in 2014, double the amount of a decade earlier. Sales in China will rise 6.9% to a record 193,100 tons this year and expand 6.6% further in 2014.

That signals more potential for cocoa-supply shortages. However Asian demand is dwarfed by the 2.2 million tons eaten last year in Western Europe, where per-capita consumption was unchanged from 10 years earlier at 4.5kg with sales predicted to rise 0.5% this year before expanding 0.6% next year. Tighter supplies will mean higher costs for food makers including Nestle SA [NESN], Barry Callebaut AG and Lindt & Spruengli AG.

Cocoa climbed 25% this year to US$2,800 a ton on ICE Futures U.S. New York, the second-biggest gain among the 24 commodities tracked by the Standard & Poor’s GSCI gauge, which slid 3.3%. The MSCI All-Country World Index of equities gained 17%, while the Bloomberg Dollar Index, a gauge against 10 major trading partners, rose 3%. The Bloomberg Treasury Bond Index fell 2.8%.

Dry weather in Ivory Coast and Ghana, the biggest cocoa growers, drove price gains this year even as most commodities slumped. Production declines in West Africa mean this year’s deficit may exceed 100,000 tons, or 43% more than the ICCO forecast. Farmers in West Africa are struggling to boost production as aging trees curb yield potential. However ample precipitation will boost the next harvest. Since the start of the season on Oct. 1, bean deliveries to ports in Ivory Coast were estimated to have risen to 711,000 tons as of Dec. 15, from 498,000 tons a year earlier. [Bloomberg 17/12/13]

Consumption Surges As Supply Is In DeficitConsumption of cocoa butter surged while the harvest of beans declined. There is growing concern for the return of yet another supply deficit, with dry weather in West Africa negatively affecting the end of the main-crop production in the region. Wet weather patterns are being seen as crop damaging in Indonesia, the third-biggest producer.

Cocoa futures jumped 26% in New York this year, as dry weather parched crops in Ivory Coast and Ghana, which accounts for 58% of world harvests. Rising prices are boosting costs for European chocolate makers. Grindings, a measure of demand, rose 2.4% to a record 4.052 million tons in the year that ended Sept. 30, driven by a surge in use of cocoa butter in Europe and North America, the biggest consumers.

Production slipped 3.7% to 3.93 million tons. Production in Ivory Coast, the biggest grower, fell 3% to 1.445 million tons. The outlook for the country’s next crop is rather subdued as trees are already aging, yielding less beans, and there is low level of investment and infrastructure in the country. In Indonesia, bad weather conditions exacerbated the spread of crop diseases, while in Nigeria a lack of sunshine needed to dry the beans is raising concerns about the crop. [Bloomberg 02/12/13]

Cémoi Inaugurates Cocoa Research Hub In FranceLeading French chocolatier Cémoi has opened a new center and plans to increase its research budget by 50% until 2016. In an opening ceremony, attended by the Ivorian Minister of Agriculture Mamadou Sangafowa Coulibaly, the company opened the doors to its 120m² center at its headquarters in Perpignan, France.

The company invested US$1.4M to construct the center over its former production site, which moved to another location near Perpignan in 2008. The center will be dedicated to cocoa research, conducting experiments on roasting and blending techniques to deepen the company’s knowledge. Cémoi sources 80% of its cocoa from the Ivory Coast. A third of its workforce is also present in the country at the firm’s cocoa processing plant in Abidjan and an industrial packaging facility in San Perdro. [Confectionary News 20/12/13]


COCOA

07

COCOA


COCOA

08

CAMEROON

Cocoa Exports Lower Than Last SeasonCameroon has exported 80,019 tonnes of cocoa beans by end-November since the start of the 2013/14 season in August, down from 84,744 tonnes during the same period the previous season. The National Cocoa and Coffee Board [NCCB] said Cameroon shipped 31,848 tonnes in November, up from 28,316 tonnes in October. That was also slightly higher than 31,480 tonnes for the same month a year ago. [Public Ledger 20/12/13]

Cocoa Prices Rise After Heavy RainsCocoa farmgate prices in all Cameroon's production regions rose in December, as heavy rains made it hard to transport harvested beans from the bush. In Kumba, the main trading hub in the South-West Region which accounts for 40% of national output, prices rose to XOF1,090/kg [US$2.28] by mid-December, from XOF980-995 the previous month. [Public Ledger 19/12/13]

Cocoa Grinder Purchases Up Slightly Through NovemberCameroon's farmers sold 21,518 tonnes of cocoa beans for grinding by the end of November since the start of the season in August, up slightly from the same period last season. The country's main grinder Sic-Cacaos, a subsidiary of Swiss-based chocolate manufacturer Barry Callebaut, bought 7,527 tonnes of beans in November, bringing its total purchases for the season to 20,827 tonnes. Chocolaterie Confiserie du Cameroun [Chococam], an affiliate of South Africa's Tiger Brand and the only other grinder, bought 333 tonnes during the month. It has purchased 691 tonnes since the start of the 2013/14 harvest.[Reuters 19/12/13]

Cameroon Looks To Triple ProductionCameroon aims to raise its annual cocoa production to 600,000 MT by 2020, nearly three times the current 228,911 tons. To do that it needs to enlist more young people to replace ageing farmers a theme that ran during the recent International Cocoa Festival [Festicacao 2013]. [Market Watch 08/12/13]

Cameroon's August-November Cocoa Exports RiseCocoa exports in the first 4-months of the 2013-2014 season have increased year over year, according to the National Cocoa and Coffee Board [NCCB]. 89,823 MT of cocoa beans were exported between August and November, up from 84,545 tons during the same period last season.

The world's 6th largest producer exported 31,848 tons of cocoa beans in November alone, slightly higher than the 31,481 tons exported in that same month of the previous season. Cocoa beans exports in November signified that the country's main crop cocoa production was witnessing a rise, following the resumption of steady rainfall since mid-September. Cameroon produced 228,911 tons of cocoa beans in the 2012-2013 season, up from its 2011-2012 cocoa beans production of 220,000 tons. [Market Watch 15/12/13]

COTE D’IVOIRE

Ivorian Cocoa Arrivals Advance Further Ahead Of Last Season Steady rainfall and a mild onset to seasonal Harmattan winds across Ivory Coast's main cocoa growing regions should bolster bean quality through next month. Cocoa arrivals at ports in Ivory Coast reached around 683,000 tonnes by 15/12/13 since the start of the season in October, up from 486,000 tonnes in the same period of the previous season. Exporters estimated around 96,000 tonnes of beans were delivered to the country's 2-ports of Abidjan and San Pedro between December 9 and 15, up from 63,000 tonnes during the same period last year. [Public Ledger 16/12/13]

Cocoa Drops as Ivorian Arrivals Signal More SupplyCocoa bean arrivals at ports in Ivory Coast advanced 45% from the start of the season on Oct. 1 through Dec. 1 compared with a year earlier. West Africa, which accounts for about 70% of the world’s cocoa output, will get less rain in the next 2-weeks, favouring the harvest. Over December prices will trade between US$2,570-3,000 a ton. Production may fall short of consumption by 100,000 tons. That follows a shortage of 160,000 tons in 2012-13. [Bloomberg 05/12/13]

Nestle Inaugurates Experimental Farm In Cote d'IvoireNestle has inaugurated a new experimental farm on a 30-ha site in Cote d'Ivoire to focus on plant science and research into nutrition, sustainable agriculture and rural development. The farm is located at Zambakro, 18km from Yamoussoukro. The centre will feature a mini propagation laboratory, where high-yielding plantlets for distribution to cocoa and coffee farmers will be grown.

It will also host a breeding programme for new varieties of coffee and a soil fertility lab. The Zambakro facility is part of Nestle's Research and Development Centre in Abidjan. It aims to provide an estimated 27 million coffee plants and 12 million cocoa plants by 2020 to rejuvenate plantations in the Ivory Coast. The country achieved record cocoa output in 2011, topping 1.5 million tonnes of beans, but many industry experts predict a gradual drop in production across West Africa as trees age and yields fall. [Reuters 11/12/13]


COCOA

09

GHANA

Ghanaian Cocoa Purchases Running 40% Ahead Of Last Season Cocoa purchases declared to Ghana's industry regulator, Cocobod, reached 486,094 tonnes by December 12 since the start of the main crop on October 18, up 39.9% on the previous year. The purchases, which covered the first 8-weeks of the season, were sharply above the 347,401 tonnes declared in the corresponding period last year. [Public Ledger 24/12/13]

Ghana To Fall Short Of 2013/14 Cocoa Output TargetAccording to Ecobank, Ghana, the world's second largest grower, will produce around 780,000 tonnes of cocoa during the current 2013/14 season, well short of a target of 830,000 tonnes set by industry regulator Cocobod. The Togo-based pan-African bank expects output from the West African nation to fall for the third straight season following a decision to phase out a fertiliser subsidy for farmers. [Reuters 17/12/13]

Ghana Cocoa Platform LaunchedThe Ghana Cocoa Board [GBC] in partnership with the UNDP and industry partners has established the Ghana Cocoa platform to enhance public-private dialogue and joint action planning. The move is to support the scale up of sustainable production, and deepen the engagement with the private sector and civil society to ensure a strong sustainable cocoa industry. [GBC 28/11/13]

National Cocoa Stakeholders' Conference A 2-day National Cocoa Stakeholders' Conference has been held in Accra. The conference brought together 200 private sector operators, officials, donor partners, civil society organisations and farmers. It aimed at deepening engagement with the private sector and civil society to ensure a sustainable cocoa industry and to find a sustainable solution to emerging threats posed by illegal mining, logging and climate change. Ghana Cocoa Platform [GCP], the promoter of the conference, is an initiative established toward achieving a sustainable cocoa industry through enhanced partnership and cooperation among stakeholders. It is a partnership between Ghana Cocobod and the United Nations Development Programme [UNDP].

Ghana is the third leading producer of cocoa in the world, after Indonesia and Cote d’Ivoire yet despite strides the sector still faces challenges that needed to be fixed if the country was to regain its past glory. Problems such as the lack of access to credit facilities and the increasing menace of illegal mining [galamsey]. Ghanaian farmers produce 400 kg/ha while farmers in Cote d’Ivoire and Indonesian produce 600 kg and 1,000 kg respectively. Low production is attributed to weak institutions and co-ordination, pests and plants diseases, inadequate extension services and poor access to credit and inputs.[Ghanaweb 01/12/13]

New COCOBOD CEO AppointedThe Food and Drugs Authority [FDA] Chief Executive Dr. Stephen K. Opuni has been appointed as the new Chief Executive of Ghana Cocoa Board [COCOBOD] replacing Anthony Fofie. [Ghanaweb 01/12/13]

COCOBOD In Dire StraitsThe Ghana Cocoa Board [Cocobod] is facing financial constraints. The board has undertaken a wide range of cost-cutting measures to ensure the sustainability of the association. Among them are a temporary freeze on pay rises, recruitment and overtime. Cocobod acquired a warehouse complex in Apowa near Takoradi at the cost of US$140 million, even though it is constructing a 100,000 tonne state-of-the-art warehouse in the same area at a cost of US$75 million creating a big hole in Cocobod’s finances.

Even in 2010/11 Cocobod increased the producer price of cocoa by 33%, but the expectant corresponding increase in the price of cocoa on the world market did not happen, instead there was a price drop. And to further worsen the situation, Cocobod increased the producer price by another 6% in the last 2-seasons. As Cocobod undertakes forward contracts with its buyers who are supplied the bulk of the produce, it doesn’t benefit from spot sales much even if the spot prices are good.

The current financial difficulties call into question how effectively the organisation has been managed in the last few years, considering the rather encouraging statistics for cocoa production in Ghana over recent years. The country produced 835,410 tonnes of cocoa during the 2012/13 crop year, down 5% on the previous season. An unprecedented 1-million tonnes of cocoa was produced during the 2010/11crop-year, thanks to good weather and improved farming techniques -- but production declined to about 850,000 tonnes in the 2011/12 season.


COCOA

10

COCOBOD Worries Over Rising Crop Production CostThe Ghana Cocoa Board [Cocobod] is worried over the continuous rising crop production cost over the years as it works to raise cocoa output from a previous 400,000 tonnes per annum to about 900,000 tonnes at present. Inputs such as planting materials and chemicals have risen and spending on infrastructure has increased. [Ghanaweb 01/12/13]

Plans To Cut Fertiliser SubsidyGhana's plans to phase out its fertiliser subsidy threaten to curb cocoa output according to fertiliser company Yara International. Industry regulator Cocobod pays for roughly half the cost of fertiliser distributed to farmers under a programme that helped double Ghana's annual cocoa production over the past decade. [Public Ledger 11/12/13]

Hard Times For Cocoa BuyersDespite Ghana’s unparalleled cocoa record in the 2010/11 season, thanks to good weather and government incentives, the cocoa industry has gone through some challenges over the last 3-seasons. After the boom output of the 2010/11 season when purchases reached the record high of 1 million tonnes, and the international market offered the country the most pleasing averaged-price ever at US$3,300 per tonne, the industry has suffered a reversal of fortunes.

Licenced Buying Companies [LBCs], which purchase cocoa from farmers, prepare and deliver to ports, have faced more than their fair share of the price setbacks as the international market price of cocoa took a declining turn, resulting in earnings nose-diving to unanticipated depths.

The Licenced Cocoa Buyers Association of Ghana [LICOBAG] explained that LBCs have had to operate on the same buyer’s margin of GH¢342 per tonne for the last 3-seasons from 2010/11 to 2012/13. Worse is that during the opening of the 2013/14 season, Cocobod urged LBCs to continue with the same buyer’s margin for a 4th season. PBC Limited, the largest buyer of cocoa beans commanding between 35-37% of purchases, has received the greatest hit from the price setback. [Ghana Web 02/12/13]

CocoaLink Program Hits 40,000 Mark More than 40,000 Ghana cocoa farmers have registered for CocoaLink, a digital exchange network that links farmers to modern farming information. An innovative public and private partnership between the cocoa sector and the Ghana Cocoa Board, CocoaLink is provides real-time information about coping with dry weather, pruning and pesticide applications. Messages are sent in English or Twi, and farmers can text follow-up questions or call cocoa experts for additional information.

Launched in Ghana in 2011, CocoaLink is the first dedicated mobile information program to target the country’s cocoa farmers, 80% of whom use mobile phones. To date, more than 850,000 free SMS messages have been sent to farmers. CocoaLink is expected to register a total of 100,000 farmers in Ghana within the next 2-years. Farmer yields can double or triple when modern farm practices are applied.

The CocoaLink program is part of the Hershey 21St Century Cocoa Sustainability Strategy – a commitment to source 100% third-party certified cocoa for all of its chocolate products worldwide by 2020. The program is also supported by the World Cocoa Foundation, World Education, Inc., and the International Cocoa Initiative [ICI]. CocoaLink will be introduced in Cote d’Ivoire by year-end through a similar public-private partnership model. [Just Means 03/12/13]

For more information, please visit: www.thehersheycompany.com/social-responsibility.aspx

Netherlands Commits €21 Million To Ghana's Cocoa Improvement ProjectThe Netherlands and its partners have outlined a €21 million project to help improve the competitiveness of Ghana's cocoa industry. The Cocoa Rehabilitation and Intensification Program [CORIP] includes a €7 million grant initiative from the Dutch government and an additional €14 million from the private sector. For the next 4-years, the farmers' support program will establish and operate Cocoa Rural Service Centers [RCS] that will promote and upscale cocoa production in a sustainable self- financing way.

It will provide necessary technical support for farmers to rehabilitate old farms and intensify existing cocoa systems. The project will also work with the Cocoa Research Institute [CRI] of the Ghana Cocoa Board [COCOBOD] to boost availability of improved planting materials. The project to be coordinated by Solidaridad West Africa, a Netherlands-based international food and energy company. Netherlands is the largest importer of cocoa from West Africa and will, through the privately run RCSs provide training, information, inputs and other technical support for improved cocoa production in Ghana. [Xinhua 03/12/13]


COCOA

11

Daily Spot Price [ICCO]These are the average of the quotations of the nearest three active futures trading months on NYSE Liffe Futures and Options and ICE Futures US at the time of London close.

Date ICCO daily price [SDRs per tonne]

ICCO daily price [US$ per tonne]

London futures [£ sterling/tonne]

NY futures [US$ per tonne]

2 Dec 13 1853.38 2839.45 1754.33 2812.67 3 Dec 13 1848.05 2835.63 1748.67 2804.67 4 Dec 13 1827.70 2804.60 1734.33 2776.00 5 Dec 13 1817.10 2788.69 1730.67 2755.00 6 Dec 13 1844.83 2837.88 1760.00 2803.00 9 Dec 13 1812.82 2790.74 1724.33 2758.67 10 Dec 13 1821.24 2806.89 1734.67 2768.67 11 Dec 13 1813.40 2796.60 1731.67 2759.33 12 Dec 13 1834.49 2830.82 1761.00 2790.33 13 Dec 13 1832.31 2817.85 1757.33 2776.00 16 Dec 13 1839.18 2835.61 1768.67 2790.33 17 Dec 13 1833.33 2823.02 1769.67 2773.33 18 Dec 13 1836.37 2829.15 1759.67 2778.33 19 Dec 13 1848.64 2841.29 1767.33 2790.33 20 Dec 13 1866.99 2865.27 1785.67 2815.00 23 Dec 13 1860.97 2859.87 1780.67 2810.67 24 Dec 13 1875.78 2881.73 1797.67 2824.00 26 Dec 13 1854.33 2850.01 1776.17 2788.00 27 Dec 13 1827.25 2823.49 1754.67 2763.00 30 Dec 13 1800.66 2773.02 1712.67 2721.33 31 Dec 13 1807.58 2783.68 1726.00 2713.33


COCOA

12

KENYA

Coffee Auction Prices Down By 16.5% In 2013Coffee prices decreased 16.5% to Sh282.30/kg compared to Sh338.3 recorded in 9-months of this year. Equally, coffee production decreased to 32, 911 tonnes compared to 40, 258 tonnes million of coffee registered the same year. The Kenya National Bureau of Statistics in its October Report: Leading Economic Indicators October 2013 reveals that coffee production has been declining in the country owing to erratic weather conditions. This has seen farmers convert coffee bushes into the more lucrative real estate especially in Kiambu and Muranga counties.

Coffee growers have also been uprooting the bushes to plant high value crops, such as flowers, soya and French bean. Farmers have also been registering good returns in the dairy industry and thus abandoning coffee farming. According to Coffee Board of Kenya, land under coffee has decreased from more than 170,000 ha to 109,795 ha as at end of 2012 production year.

Once the leading foreign exchange earner for the country, coffee farming is now ranked fifth in terms of foreign after tea, horticulture and tourism. Annual coffee earnings have also been overtaken by remittances from the Kenyans in Diaspora.In 2011, farmers produced 29,984 tonnes but prices per kg bag of clean coffee reached Sh594.53. The tide changed last year as yield increased to 46,052 tonnes but prices dropped by 45.4% to stand at Sh324.04 per kg of clean coffee. The report by the Bureau states that January 2011 fetched the highest price per kg of Sh681.54 equated to Sh344.30 registered the same month in 2013. [Standard Digital 30/12/13]

Coffee Drops In Both Earnings And Export ShareEarnings from coffee, one of Kenya's leading exports, were among the worst affected the year ending September dropping from US$269m in 2012 to US$198m in 2013. Both the share and value of coffee exports declined. Coffee exports declined from 4% to 3% of total exports and values from US$269m to US$198m following a decline in coffee export pricesy.

Kenya's coffee earnings have recorded mixed performance in the three quarters of this year. Between January and March, it earned US$43m a drop from US$46m in the period October to December 2012. In Q2 the earnings climbed to US$59m before dropping to US$51m in the period July to September. The dip in earnings is reflected in decline of prices of the commodity at Nairobi Coffee Exchange [NCE]. A kilo of coffee went for US$3.28 at NCE in September, down from US$3.39 in August and US$3.96 in January. [Guardian 19/12/13]

Kenya Coffee Sold At Auction Slides In 2012/13 Season The value of coffee sold at Kenya's coffee auction in the 2012/13 season fell 13% to US$166.7 million compared to a year earlier reflecting lower sales and a drop in global prices. Kenya sold coffee worth US$190.8 million in the 2011/12 season that runs October to September. In 2010/11, it earned US$221.1 million. Kenya exports about 90% of its coffee through the Nairobi Coffee Exchange, and the remainder is sold directly by growers to foreign buyers.

The season was badly affected by subdued international coffee prices and never recovered. In the 2012/13 season, 625,185 60-kg bags of coffee were sold through the exchange compared with 722,769 bags a year earlier. The average price fell to US$166.7/50-kg bag from US$220 in the 2011/12 season. Kenya expects its overall coffee export earnings to dip slightly in 2012/13. [Business Recorder 10/12/13]

Kiambu Farmers Form Co-Op to Market CoffeeMore than 51,000 coffee farmers from 22 coffee societies in Kiambu county have formed a cooperative to market their crop locally and abroad. The new ‘Kiambu County Coffee Cooperative Ltd’ also called on the government to give them loans for fertiliser and agreed to use the milling capacity at Komothai. [The Star 18/12/13]

COFFEECOMMODITY WATCH WWW.DELMAS.COM

COFFEE

13

RWANDA

Revival: Rwanda Wants To Generate US$157 Million By 2017The establishment of transparent management structures, the increase in land devoted to the cultivation of coffee, the use of fertilizers and agricultural mechanization are some of the measures envisaged by the National Commission On Development And Export Of Agriculture [NAEB] to revitalize Rwandan coffee. NAEB intends to generate US$157 million by 2017 through the export of the commodity. Rwandan coffee has seem a downward trend for almost 2 years with this year’s estimate forecasted to be the lowest. [Ecofin 09/12/13]

TANZANIA

Tanzania Coffee Prices Edge Higher As Supply FallsTanzania's coffee prices rose at auction recently, tracking higher New York and London markets. The Tanzania Coffee Board [TCB] said 18,046 60-kg bags were offered at the latest sale and that 14,401 bags were purchased. At the previoussale, a total of 24,685 60-kg bags had been offered for sale, with 18,892 bags sold.

Overall average prices at the Moshi exchange were up by US$4.80/50 kg for mild arabica and robusta prices were up by US$19.53/50 kg compared to the last auction. Average prices at the Moshi exchange were above the terminal market by US$6.54 for mild arabica and robusta were above the terminal market by US$15.59.

The TCB said New York markets rose by US$1.71/50 kg, while London markets also inched higher by US$6.05/50 kg. East African coffee is normally packed in 60-kg bags, but the prices are quoted for quantities of 50 kg. The TCB expects the 2013/14 crop to fall to 45,000 tonnes from around 71,600 tonnes in the previous season, the highest output in 20 years. The regulator is considering suspending the next auction [26/12/13] due to year-end holidays. [Reuters 17/12/13]

TaCRI Embarks On Coffee Quality Improvement In MoshiThe Tanzania Coffee Research Institute [TaCRI] is to stimulate coffee farming in Kilimanjaro with a 5-year plan. TaCRI will remove old plants and replacing them with new seedlings to improve productivity and quality.

TaCRI has helped farmers in old Moshi to plant about 45,706 new coffee clones and cultivating more than 18,779 ha that are dominated by 42,000 small-scale farmers while local and foreign investors are cultivating about 930 ha. [Guardian 12/12/13]

Coffee Quality Training Benefits 20,000 FarmersThe Coffee Partnership for Tanzania [CPT], a public-private partnership, has trained more than 20,000 coffee farmers in a bid to enhance quality and productivity. Farmers, organised in producer organizations [POs], are headed by lead farmers who are supported and trained by agronomists from implementing partners.

Farmer field schools and demonstration plots are used to facilitate good agricultural practices. More than 7,000 producers have been certified under renowned sustainability standards.

Considerable investment has been made into mills and nurseries and more than US$800,000 have been disbursed to coffee farmers via loan facilities as well as planting materials resistant to major diseases. CPT is working closely with the Tanzania Coffee Research Institute [TaCRI] to build on this expertise and with TechnoServe to develop a common set of practices as a guideline to be used in coffee training of producers.

The CPT conducted a survey in November 2012 against which the impact will be measured at the end of the project’s tenure in 2016. The main goal is to double coffee yields within CPT’s 4 year project tenure.

The project which was launched in October 2012, is funded by the Bill & Melinda Gates Foundation. It works together with 3-implementing partners: Tutunze Kahawa Limited, Coffee Management Services [CMS] and Hanns R. Neumann Stiftung [HRNS], who are currently operating in Kilimanjaro, Arusha, Mbeya, Ruvuma and Kigoma regions.

In August 2013, the Bill & Melinda Gates Foundation and IDH's Sustainable Coffee Programme convened a workshop in Dar es Salaam to define a set of shared outcomes for coffee initiatives in East Africa and develop common key performance indicators [KPIs] for evaluating them. The goal was to identify KPIs and measurements so that coffee initiatives in the region are monitoring and evaluating similar outcomes in a consistent and comparable manner.

At least 12 high-priority KPIs covering farmer adoption of good agricultural practices, extension services, wet processing and market access were identified. [Guardian 04/12/13]

FACTBOX: Tanzania Coffee Research Institute [TaCRI]• Incorporated in 2000 • Owned by the stakeholders who it is serving: small and large scale farmers, co-operatives, unions, processors, traders, NGOs, private sector and the Tanzanian Government.• Aims to rejuvenate the Tanzania coffee industry, placing new emphasis on stakeholder-led, demand-driven research for development. • Market focused: Key values such as strong demand driven technology development and dissemination • Website www.dev.tacri.org

Grade 12/12/13 5/12/13 28/11/13 AA $110.00-$170.00 per bag $100.00-$123.20 per bag US$107.80-$190.00 per bag Average price $119.28 $112.41 US$112.59 A $112.60-$119.20 per bag $113.00-$119.40 per bag US$104.00-$129.00 per bag Average price $117.42 $115.78 US$112.93

COFFEECOMMODITY WATCHCOMMODITY WATCH WWW.DELMAS.COM

COFFEE

14

UGANDA

Uganda Coffee Development Authority [UCDA] Coffee Policy LaunchCoffee farmers in Uganda can expect to raise their productivity and incomes with increased access to reliable inputs, improved technologies, extension services and more participation in post-farm processes with the launch of the National Coffee Policy. The policy aims at supporting and strengthening coffee farmer organisations to participate effectively in all the stages of the coffee value chain, streamline and strengthen existing coffee laws and regulations at all stages of the value chain and to ensure adherence to the recommended quality standards. The policy also aims to promote domestic consumption of coffee to enhance coffee industry competitiveness and develop the local market.

The Ministry of Agriculture has prioritised coffee as the 2nd ranked commodity on a list of 17. Coffee contributes an annual average of 20% of Uganda's total export revenue over the last 10 years. The lack of a comprehensive policy lead to low production because of low acreage, yields and limited participation in post-farm processes. As a result, coffee production in Uganda had stagnated at 3-million bags per year over the last past 2-decades.

The National Union of Coffee Agri-businesses and Farm Enterprises [NUCAFE], noted that the policy will be more relevant only if the Government deals with numerous challenges facing the coffee industry. NUCAFE continues to lobby the government to emphasize funding coffee research initiatives, avail disease resistant seedling and create an enabling environment for long term financing. [4Traders 10/12/13 / New Vision 16/12/13]

Uganda Coffee Exports Jump 13% In NovemberUganda's coffee exports rose 13% in November from the same period in 2012, helped by increased yields in some growing areas. Uganda exported 264,103 60-kg bags of coffee in November, from 233,401 bags in the same period a year ago. Uganda is one of Africa's biggest coffee exporters and the crop is one of the government's main sources of foreign currency. [Reuters 17/12/13]


COFFEE

15

GENERAL

Cotton Prices Seen Declining as China Poised to End StockpilingCotton, the third-best performing commodity this year, may drop as China, the world’s biggest consumer, is poised to end a policy of stockpiling domestic crops. The government will start a trial next year subsidizing growers of cotton and soybeans and changing previous policies that support prices by stockpiling domestic harvest, according to Finance Minister Lou Jiwei.

The policy change by China, estimated by the U.S. Department of Agriculture to hold more than half the global cotton inventory, may weigh on futures in New York that climbed 12% this year, the third-biggest gain on the S&P GSCI Index [SPGSCI] of 24 commodities. The nation began buying domestic cotton in 2011 as flagging prices made it difficult for local farmers to sell crops. The stockpiling policy carried the global cotton market for 3-years, so changing it will return the market to supply and demand. China will probably hold 12.5 million MT of cotton in inventory in the 2013-14, or 59% of the global total. Purchases for stockpiling totaled 4.7 million tons this year. [Bloomberg 30/12/13]

China To Promote Cotton Production In C4 CountriesChina has moved a step further towards promoting the cotton production capacities of C4 countries through cooperation in production, processing and logistics. Benin, Burkina Faso, Chad and Mali together account for 15% of the world’s cotton exports. The agreement is a follow-up of a program that began in 2011 at the 8th WTO Ministerial Conference.

The extended scheme would cover new areas like sales, besides increased assistance in infrastructure improvement, technology, training and research, as well as encouraging setting up of Chinese-African joint venture companies, to be carried out by 2015. Although China is one of the leading cotton producing nations, producing nearly 7-million tons of cotton each year it’s demand is so high it needs to import from other countries. [Xinhua & Fibre2fashion 04/12/13]

7th CmiA and COMPACI Stakeholder Conference in TanzaniaFrom 23-25/10/13 the 7th bi-annual stakeholder conference of Cotton made in Africa [CmiA] and the Competitive African Cotton Initiative [COMPACI] took place in Tanzania. More than 100 experts from industry attended the event organised by the Aid by Trade Foundation [AbTF], the German Investment and Development Company [DEG] and the Society for International Cooperation [GIZ], the initiators of CmiA and Compaci. Together, they discussed topics such as measuring the effect of the work of CmiA and COMPACI, sustainability, new market opportunities and the newly introduced CmiA-organic standard. The focus of the debate also involved the topic “African textile production and Sales Opportunities in Africa”. [CmiA13/11/13]

COTTON, TEXTILES & LEATHER GOODS



16

BURKINA FASO

African Farmers Reap Gains Of Biotech CottonBy embracing biotechnology farms in Burkina Faso have noted yields improved from 400 kg/ha to some 1-t/ha. The transgenic cotton was developed by inserting a gene on one of the locally available high yielding varieties.

The GM cotton is highly resistant to the Bollworm pest that is responsible for most of harvests losses. Farmers only have to spray their crops twice per season down from 9 that was required with conventional cotton. On average, cotton yields have increased by 20%.

As of 2013, over 250,000 small scale farmers have embraced Bt cotton cultivating over 500,000 ha equating to 60% of all cotton grown. However Burkina currently has a problem satisfying demand of the Bt cotton seeds. Also some farmers have not switched due to the high cost of the Bt cotton seed.

At US$56 for 12kg it is much more than conventional seeds at US$2 for 30kg. Burkina Faso is currently working closely with seed producers to ensure that the price reduces so that more farmers can embrace the new technology.

SOFITEX is one of the 3-cotton companies that produces high quality seeds for farmers. Meanwhile scientists are now working on developing cotton varieties that are resistant to herbicides. [Coastweek 02/12/13]

MALI

Cotton Stakeholders Assessing Marketing Year 2012-2013Cotton stakeholders including the Compagnie Malienne pour le Développement du Textile [CMDT] and the Union of Cotton Producers in Mali [UNSCPC] met to assess the cotton marketing campaign. Mali had invested CFA119 billion in the last marketing year for cotton seed. Production stood at 449,646 tons in 2012 with 436,000 tons expected for 2013 well below the 522,000 tons planned due to adverse weather conditions. [Ecofin 13/12/13]

TANZANIA

Contract Farming Plans To Double Cotton OutputTanzania produced 360,000 tonnes of cotton last [2012/2013] season above the 255,000 tonnes in the previous season considered to be a result of contract farming. Tanzania earned US$159.3M from cotton exports during the year to June 2013.

Contract farmers enter into written contracts with ginners or processors who undertake to buy the entire or part of the produce as agreed. Ginners also provide farmers with appropriate farming inputs, and pesticides on credit to boost production. Under the Tanzania Cotton and Textile Development Programme, Tanzania is determined to double cotton output by establishing contract farming to support marketing and to ensure that cotton farmers get easier access to inputs.

Several activities are being undertaken under the programme such as extending technical assistance to Tanzania Cotton Association [TCA] and Tanzania Cotton Board [TCB] members investing in the sector. This enables those receiving the support to promote proper policy and institutional reforms, while the designated “Seed Multiplication Zone” [SMZ] comprising farmers and ginners receive assistance to ensure successful management of contract farming.

The programme is helping Mwanza-based Ukiliguru Research Institute to improve its research capacity to address new challenges facing the industry, while supporting TCB to introduce improved cotton seed. Buyers, who in Tanzania’s case are cotton ginners, provide farmers with seeds and pesticides as well as technical advice on a loan basis. The farmers are in turn obliged to sell their cotton to the ginners. However there are challenges such as some ginners failing to distribute farming inputs to farmers on time. [Guardian 05/12/13]

Japan's Nitori to Invest Sh900 Billion in Cotton FarmingJapan's Nitori Holdings Company is to invest US$550M in large scale cotton farming and related industries in Tanzania. The investor has secured 40,000 ha of land for commercial cotton farming in Handeni District where it will open a cotton farm and a processing plant. The investment was initially planned for Morogoro Region but the company failed to secure enough land for its earmarked investments.

Nitori is in the final stage of acquiring the land and once completed the country will have its first large scale cotton farm. Nitori will construct textile factories within the area, to completely process into final products for their chain of stores thus adding cotton value. The move will also assist to stabilize local prices. Nitori has 300 stores in Japan and plans to increase the number tenfold to 3,000 stores in the next 20 years. [Daily News 06/12/13]



17

MADAGASCAR

White Spot Syndrome Reduces The Production Of Shrimp Malagasy shrimp production has declined 1,000 tons to 3,420 tons against 4,420 last year. The decline is due to white spot disease forcing 2-companies out of business. The OSO Farming Group has invested US$1M in the search for a virus-resistant strain. [Ecofin 10/12/13]

MOROCCO

New EU-Morocco Fishing AgreementA new fisheries agreement between the Morocco and the European Union was approved on 10/12/13 by the European Parliament. For €30 million pa 1000 European fishermen can now extend their fishing into Moroccan waters. The protocol will last 4-years. [Ecofin 11/12/13]

FISHCOMMODITY WATCHCOMMODITY WATCH WWW.DELMAS.COM

FISH

18

CAMEROON

Rice Seeds To Stimulate ProductionA 2-year CFA1.5 billion franc pilot project by the Ministry of Agriculture has seen 78 tons of upland rice seed produced and available for 6,000 producers. The project, which receives technical support from the Japanese Development Agency [JICA], has seen its turnaround time of 3 years extended to 5 years due to encouraging results. It means that only CFA 500 000 francs is needed to cultivate 1-ha against CFA4M francs for irrigated rice. Cameroon aims to increase rice production to 700,000 tonnes by 2020, compared with 100,000 tonnes currently. Cameroons domestic demand is estimated at approximately 300,000 tonnes. Imports stood ar CFA156 billion francs in 2012 from Thailand [52%], India [26.9%], Viet Nam [16.6%] and Pakistan [2.7%]. [Ecofin 11/12/13]

COTE D’IVOIRE

Ivorian Brewers Preparing For A New Alcoholic Beverage Tax Ivorian alcohol and tobacco tax will increase from 12% to 15% from 01/01/14. [Ecofin 14/12/13]

Ivorian Poultry Production Increases 47% The Inter Profession Poultry Ivoirienne [Ipravi - www.ipravi.ci] has noted poultry production has increased 47% from 17 million in 2011 to 25 million chickens in 2012 generating more than CFA 100 billion francs. A 5-day conference was held in Abidjan during December focused on the implementation of the Strategic Agriculture Revival Plan [PSRA] which promoted national poultry production. [Ecofin 14/12/13]

MOROCCO

Morocco To Increase Annual Production Of Argan Oil Morocco aims to increase its production of argan oil by 150% by 2020 from an annual production of 4,000 to 10,000 tonnes. The Kingdom intends to rehabilitate 200 000 ha, or nearly a quarter of the total area devoted to the culture of the argan tree which is estimated at 830,000 ha. It will install modern irrigated plantations and establish a research and development centre. During 2012-2013 the National Agency for the Development the Argan Tree [ANDZOA] signed 80 financing agreements involving 7 provinces and 55 local authorities. [Ecofin 10/12/13]

Authorities To Boost Milk Production Morocco aims to increase milk production from 20 to 30 million liters of milk pa by 2020 and to achieve commercialization of 7.2 million annual liters an increase of 60% compared to the 4.5 million currently marketed. [Ecofin 13/12/13]

NIGERIA

FG To Cut Wheat Importation By 20%The Federal Government will cut wheat importation by 20% and save over N127 billion from its annual wheat import bill of over N635 billion as from 2014. The government has concluded plans to implement its policy of 20% substitution of wheat with cassava flour in bread production, to reduce the bill and develop the cassava industry. The policy also aimed at diversifying the country’s economic base from oil to non-oil sectors. President Goodluck Jonathan has approved a N10 billion cassava bread development fund. [Business Day 02/01/14]

Nigeria Yam Output To Rise 100% As IITA Turns To AeroponicsThe International Institute of Tropical Agriculture [IITA] has successfully grown seed yam without soil and water as support raising hopes for the propagation of virus- and disease-free plant development. Aeroponics is widely used by commercial potato seed producers in eastern and southern Africa but successfully growing yam is a novelty. Nigeria, which is currently the world’s highest producer of yam could raise its annual output by 100% a couple of years. [This Day 23/12/13]

UGANDA

New Agricultural Policy On Food CropsTransformation of maize, beans and cassava is the objective of a new Ugandan agricultural policy due to the decline in export earnings generated by conventional crops such as cotton, coffee, tea and flowers. [Ecofin 11/12/13]

FOODSTUFFS


FOODSTUFFS

19

FOODSTUFFS GENERAL

World Palm Oil Exports Seen Falling for First Time in 16 YearsGlobal exports of palm oil may decline this season for the first time in 16 years as makers of biofuel and cooking oil substitute sunflower and soybean oil. Palm oil exports will total 43.75 million MT in the 2013-14 season that began Oct. 1, down 1.1% from a year earlier. Shipments from top-producer Indonesia will decline 0.8% to 21 million tons, while exports from Malaysia, which ranks second, will fall 2.2% to 18.1 million tons.

Prices for palm oil climbed 10% since Oct. 1 on Bursa Malaysia Derivatives amid declining stockpiles in Malaysia and Indonesia and prospects for slower production growth. Global palm oil output will increase 4.8% to 58.5 million tons in the 2013-14 season, compared with a 6.6% increase the previous year. Production of soybean oil will rise 5.5% from a year earlier to a record 44.2 million tons. World output of sunflower oil will rise as much as 9.7% to 8.5 million tons. Rapeseed oil output will increase 2% to a record 25.4 million tons. [Bloomberg 17/12/13]

Wilmar Makes Palm Oil PledgeWilmar International, one of the world's largest suppliers of palm oil, has pledged to source the commodity more sustainably. The Singapore-listed agri giant, which has come under fire for the way it produces the oil, said it would ensure that both Wilmar's own plantations and companies from which Wilmar sources will only provide products that are free from links to deforestation. Wilmar supplies palm oil to food manufacturers including Unilever, which has made its own public commitment on the way it sourced the ingredient which must be from traceable and certified sources by 2020. [Just Food 06/12/13]

CENTRAL AFRICAN REPUBLIC

CAR Crisis Affects Dongo Palm Oil ProductionDongo, dependent on palm oil exports, has been unable to export produce due to recent political upheaval and has seen production stagnate. As a consequence the price of the commodity has risen 44%. [Ecofin 14/12/13]

NIGERIA

1st International Palm Produce Conference Nigeria To Boost Oil Palm Production / Calls On Government to Sustain Import Ban The 1st International Palm Produce Conference [IPPC] was held over 3-days on the theme ‘Investment in Oil Palm and its Derivatives: A Panacea for African Economic Growth and Sustenance,’ organised by the Nigerian Federal Ministry of Trade and Investment in collaboration with National Palm Produce Association of Nigeria [NPPAN]. Stakeholders urged the Government to maintain the 35% duty on imported crude palm oil as well as the establishment of a special fund for Oil Palm Development to be managed by the Bank of Agriculture [BoA], Bank of Industry [BoI – NIRSAL] that will offer 5-6% interest rate to assist entrepreneurs in the industry. They also called for the government to sustain the ban on importation of vegetable oil in Nigeria in order to improve the production, processing and marketing of oil palm oil along the entire value chain.

The oil palm industry has suffered neglect over the years due to over dependence on crude oil revenue, inadequate planting materials and low investment in large commercial farms. Participants urged the Government to sustain the initiatives in the Transformation Agenda especially the Agricultural Transformation Agenda [ATA], National Industrial Revolution Plan [NIRP], and the Nigerian Agric-Business and Agro-Industry Development Initiative [NAADI].

Meanwhile the Nigerian Institute for Oil Palm Research [NIFOR] has intensified efforts to produce improved oil palm seedlings, with about 9-million improved seedlings to be raised and distributed to farmers under the project. The ministry is also fabricating better mills for small and medium-scale plantations as well as processors to be made available to farmers and will supply 73 motorised harvesters at subsidized rates to boost oil palm production. [Government of Nigeria 05/12/13 / NAN 14/12/13]

PALM OIL


PALM OIL

20

KENYA

Uhuru Seeks Comesa Sugar Deal ExtensionPresident Kenyatta has vowed to rescue local sugar millers from collapse by safeguarding them from cheaper producers within the Common Market for Eastern and Southern Africa [COMESA] region. The COMESA window allows Kenya to import up to 350,000 MT of sugar a year, but the import quota expires in March after several extensions. However local sugar millers continue to post massive losses despite these quotas and the expiry would deliver a final blow. State-owned sugar millers posted a combined net loss of Sh6.1 billion in the year ended June, underlining the vulnerability of the firms to increased competition from regional producers. Muhoroni posted the biggest loss at Sh3.9 billion followed by Sony [Sh1.06 billion], Nzoia [Sh1.05 billion] and Chemelil [Sh936 million]. The government announced it will work with authorities to extend the quota. [Hispanic Business 04/12/13]

SOUTH AFRICA

RCL Foods Buys TSB Sugar To Broaden PortfolioSouth African group RCL Foods has acquired local business TSB Sugar in a bid to diversify its business. RCL Foods formerly known as Rainbow Chicken, the South African poultry firm which changed its name when it acquired Foodcorp this summer. The company has continued the broadening of its business with the purchase of TSB Sugar, which owns the Selati sugar brand. TSB Sugar is indirectly owned by South African investment fund Remgro, which is the controlling shareholder of RCL Foods. RCL Foods said the deal would help it expand across Sub-Saharan Africa. [Just Food 28/11/13]

SUGAR


SUGAR

21

SUGARBURUNDI

Bumper Kenyan Crop Hits Burundi Tea ExportsBurundi's tea export earnings slumped by 65% in October from the same month last year, due to a weaker world market and higher tea output in Kenya. Tea earnings dropped to US$740,791 for the month from US$2.15 million in October 2012, with export volume falling to 400,010 kg versus 682,827 kg the previous year. [Public Ledger 09/12/13]

KENYA

Mombasa Auction Tea Prices At All Time LowThe prices of tea at the Mombasa auction have dropped to the lowest level last witnessed 5-years ago. The Kenya Tea Development Agency [KTDA] noted tea prices have decreased by 30% since July 2013 and this is likely to impact negatively on earnings. The drop in prices has been occasioned by increased supply of teas in the market and favourable weather. Between January and September over 60 million kg from East Africa have been sold through the Mombasa auction with Kenya as the greatest contributor. As a result, a kilo of made tea has sold at an average price of Sh205.03 between July and November 2013 compared to Sh314.44 the same period last year. This is the lowest price registered since October 2008 when the price sold at Sh176.60/kg.

Tea Production

Besides low prices, the tea industry is being affected by the 1% Ad Valorem tax imposed by the government. Coupled with the 16% VAT tax on local sales, business becomes difficult to operate. The KTDA is appealing to the government to consider waiving the taxes. The government was aware about the issues affecting the tea industry and is partnering with the industry to overcome the challenges. A task force that has been formed to look into the issue of Ad Valorem tax. [Capitol FM 18/12/13]

Tea Prices Rebound From 5-Year Low on Panic BuyingPanic buying of tea at the Mombasa auction has helped to reverse a sharp decline in international auction prices from a 5-year low. The East Africa Tea Traders Association noted the latest auction prices rose to Sh234.60/kg [US$2.76] of processed leaf, from Sh187 [US$2.20] that had remained constant in the past 3-months. Kenyan tea prices are slowly picking up as a result of panic buying at the Mombasa tea auction after recording a low that was last witnessed in 2008. Tea traders reported a rush in buying of the leaf attributed to a drop in supply and stocking up by buyers from countries in the Northern hemisphere that are preparing for the winter season. Tea prices improved by 5-7 % in the past 2-weeks. Supplies at the auction houses are coming down affected by inadequate rain in most tea growing zones.

Increased supplies [up to 25% of green leaf produced in 2012/2013 saw revenue earned by the Kenya Tea Development Agency [KTDA] hit a record Sh69 billion. During the period, farmers delivered 1.1 billion kg compared to 907 million kg delivered in 2011/2012. The high production depressed tea prices to levels last seen in 2008. But the good prices that are being registered currently might be dimmed by the drop in quality of the Kenyan tea compared to what regional countries such as Rwanda are producing. [Tea News 02/12/13]

Sasini Posts 86% Jump In Pretax ProfitKenyan tea and coffee producer Sasini posted an 86% rise in pretax profit for the year to Sep. 30, thanks largely to reduced financing costs. Pretax profit was Sh158.41 million [US$1.83 million] on revenue up almost 1.5% to Sh2.82 billion. Finance costs, meanwhile, dropped to Sh6.63 million from Sh27 million last year. [Reuters 11/12/13]

Ad Valorem TaxAd Valorem tax is the levy imposed on the total custom value of the tea at the point of sale at the Mombasa Tea auction.

2009 2010 2011 2012 2013 est 314 million kilos 399 million kilos 377 million kilos 369.5 million kilos 415 million kilos

The tea industry in Kenya is facing a number of challenges such as

fluctuating foreign exchange rates, climate change, increasing fuel prices, decreasing smallholder farm sizes and political instability in key markets.

KTDA CEO, Lerionka Tiampati

”

TEA


TEA

22

GENERAL

Africantimber.Net Launched To Spur Intra-African TradeIn spite of its vast timber resources, Africa is a net importer of timber and wood products but the intra-African trade in timber is less than 10% of all imports. The lack of market information and transparency, constraints related to policy and legal frameworks, logistics and infrastructures as well as limited managerial capacity in the private sector are the main causes for the weak intra-African trade. This was the conclusion of a study ‘Good Neighbour - Promoting Intra-African Markets in Timber and Timber Products’ produced by the International Tropical Timber Organization [ITTO].To try and stimulate greater intra-African trade an online business-to-business timber marketplace [Africantimber.net] has been launched to provide market information and facilitate communication among traders in the region.

Supply Issues Driving Up Prices For Some SpeciesSeveral upward movements in FOB prices have been reported and while these changes are small they are more reflective of supply issues rather than any overall change in the market. Having said that, prices for sawn sapele have been firming strongly due to continued high demand and as log exports are no longer flowing from the Central African Republic because of the severe escalation of political conflict. The pressure on supplies of sapele logs is also likely to increase though; as yet, there are no reports of changes in sapele log prices. [ITTO 1-16/12/13]

Producers Eager For Indian Buyers To Return To The MarketBuyers for China are in the market for sapele and Okoumé logs but padouk is once again out of favour and prices for padouk have been falling back. Producers suggest this will continue until buyers for the India market return.[ITTO 1-16/12/13]

More Emphasis On Profitable Mid-East MarketsWest and Central African producers are becoming even less interested in the European market and are concentrating marketing efforts towards the Middle East and Far East where trade levels are good and buyers are willing to accept less stringent requirements than buyers in Europe. Reports suggest that, after some limited success by West and Central African producers to compete with meranti in the Middle East markets, SE Asian shippers of meranti are once more gaining the upper hand and taking market share from African sawn timbers. [ITTO 1-16/12/13]

Supply Issue A Serious ConcernSupply issues are the main focus of concern at present. Producers in Gabon, in particular, report a tough log supply situation and this is driving millers to resort to buying from other millers who themselves are struggling to keep sawmills fully supplied even when they have forest concessions. Heavy rains in Cameroon and also Congo Brazzaville have impacted log transport this year and recently, producers in Gabon indicated that the heavy rain was affecting log supplies. The rain season in Cameroon is coming to an end and production is beginning to return to normal which should help ease the shortfall in supply of sawn sapele and one or two more of the other species in higher demand. [ITTO 1-16/12/13]

EU Markets Offer Little Prospect For ExpansionThe remarkably calm market conditions remained through to end November and prices are unchanged. Demand is normally slow towards year end and this is expected to be the case until the end of January or February next year. W. African producers are still very dependent on markets in the EU and are not expecting a quick turn-around in business next year. The European markets are unlikely to offer any real chance for market expansion until the governments in member states expand major infrastructure and construction projects on which there has been a lot of talk but little action. Over past months the UK house building sector has been very active thanks to a government loan scheme to assist house buyers but recent news suggests this support for home buyers may be scaled back. West African exporters appear to be able to provide sufficient, comprehensive evidence to satisfy the EU timber regulation while efforts continue to implement procedures such that FLEGT licenses can be issued to ensure unrestricted access to EU markets. [ITTO 15-30/11/13]

No Change In Market Prospect In 2014Forecasts for the end of the year and early months of 2014 are generally for little change in the current stable market conditions. Producers expect to be able to maintain current price levels with possibly some small increases for the few timbers favoured by European buyers and perhaps for Okoumé for other markets. [ITTO 15-30/11/13]

TIMBERCOMMODITY WATCH WWW.DELMAS.COM

TIMBER

23

BURKINA FASO

Gazetted Forests Participatory Management Project For REDD+ Burkina Faso has prepared an Investment Plan [IP] with the assistance of the African Development Bank and the World Bank. The plan will be implemented through 2-projects. The Project for the Decentralized Management of Forests and Wooded Areas financed through the World Bank, and the Forests Participatory Management Project for REDD+ [PGFC/REDD+] financed through the Bank. PGFC/REDD+ aims to contribute to increasing gazetted forest carbon sequestration capacity.

It will develop the MRV system for REDD+ and improve forest governance as well as manage 284,000 ha of gazetted forests. The cost of the project is US$12.7 million financed by the FIP and the Government implemented over 5-years from 2014-18 supported by a single steering Committee. [AfDB 30/11/13]

Burkina Becomes Forest Carbon Partnership Facility MemberBurkina Faso has successfully become a member of the Forest Carbon Partnership Facility (FCPF).This now qualifies Burkina as a REDD country and, with the award of a US$3.8 million grant, allows it to put in place the necessary policies and systems needed to effectively operationalize the Reducing Emissions from Deforestation and Forest Degradation (REDD ) mechanism.

Burkina’s forests cover approximately 13 million ha, roughly equivalent to 43% of the total land area, and forest reserves account for almost 4 million ha. [Info Gabon 30/12/13]

CENTRAL AFRICAN REPUBLIC

Unrest And New Load Restrictions Affecting Supply Of SapeleTraders report that supplies of sawn sapele from the Central African Republic are still affected by the unrest in the country and by the strict border controls. Tough new regulations on timber truck weight have been introduced for vehicles using long road journey to Douala Port. [ITTO 15-30/11/13]

CONGO

Harvesting To Begin In New Concessions In CongoLog supply issues have not improved and producers expect forestry authorities to maintain the current strict control of forest operations and the monitoring of log transportation, production and export shipments. These controls now involve checks on volumes as well as species identification at the port.

Buying for the Chinese market continues at moderate levels and logs are in demand but supply problems limit opportunities for market expansion. The news is that harvesting will begin in some new concessions in the Republic of the Congo which should help ease log supply constraints. Meanwhile, the Middle and Far East markets are active and business remains at very satisfying levels. [ITTO 15-30/11/13]

GABON

International Tropical Timber Council Back In Gabon After 15 YearsThe International Tropical Timber Council [ITTC] opened its 49th session in Libreville, Gabon on 25/11/13, its first meeting outside the headquarters since the new international treaty to govern its work came into force in December 2011. The session was officially opened by the Head of State of Gabon whose vision was for the Gabonese Government by the year 2025 to become a world leader in certified tropical timber.

Gabon currently has 2 million ha of FSC certified forest. The ITTO stressed the work that is being carried out to promote intra-African trade of tropical timber and timber products, the sustainable management of the protected forest areas of the Congo Basin, and on the reporting capabilities of the Congo Basin countries on forest-related indicators. [ITTO 15-30/11/13]

TIMBERCOMMODITY WATCHCOMMODITY WATCH WWW.DELMAS.COM

TIMBER

24

GHANA

Ghana Forestry Commission Seeks Import Duty Relief For Mills Importing LogsThe Forestry Commission is consulting with the Ghana Revenue Authority [Customs] to try and secure tax exemptions for those timber companies which wish to import log raw materials. Ghana intends to step up imports of timber raw materials from Cameroon and elsewhere to bridge the gap between demand from the established timber mills and the domestic supply of raw materials. The main source of demand is from the housing and construction sectors. The import option is considered a short to medium-term measure to ensure the domestic timber enterprises remain viable. [Lesprom 24/12/13]

Forestry Commission Exceeds Budget By 56%The Forestry Commission has within the last three quarters generated a total amount of Ghc14.2M against budgeted revenue of Ghc 9.1M. Plantation development has seen 2,835 ha planted representing 95% of the 2013 target. In May the Ministry of Lands and Natural Resources inaugurated a 6-member Accra Eco-Park Strategy Development Committee to develop a road-map for the development of the Achimota Forest into a major eco-tourism destination. In 2014 the Commission will focus on programmes such as training and refresher programmes, sustainable forest management and plantation development, protection and sustainable utilization of wildlife resources. [Ghanaweb 21/12/13]

First Three Quarter Export Data ReleasedAccording to the Timber Industry Development Division [TIDD] of the Ghana Forestry Commission [GFC], the country earned €91.31M from the export of 206,603 cu.m of wood products in the first three quarters of 2013 as against €68.93M from the export of 179,819 cu.m in 2012.

Exports in the first three quarters of 2013 increased 32.5% in value and 4.9% in volume compared to the same period last year. The European Union is the major market for wood products accounting for €39.45M or 49% of all exports. The United States imports of kiln dried sawnwood amounted to 17% of the total volume of sawnwood exports and were worth €5.48M. The main species exported as sawnwood were wawa, mahogany, cedrela, koto and sapele.

Markets in neighbouring African countries accounted for 30.4% of the value of Ghana’s wood product exports in the first three quarters of 2013 as against 34.2% in the same period last year. The ECOWAS market [mainly Nigeria, Niger, Senegal, Burkina Faso, Togo, Benin and Mali] were the main destinations [70%].

Exports of primary products [poles and billets], secondary wood products [mainly sawnwood, boules, veneers and plywood] and tertiary wood products [comprising mouldings, flooring, dowels and profile boards] accounted for €2.02M. [2.21%], €83.05M [90.92%] and €6.272M [6.87%] respectively of the total export revenue. Secondary wood products comprised the bulk of the country’s exports in the first three quarters of 2013. [ITTO 15-30/11/13]

Timber Industry Importing LogsTIDD has expressed concern over the likely impact of reduced raw material availability for the timber industry, saying the area of forests in Ghana has fallen from about 8.5M ha to the current 1.8M ha. The industry may be forced to import logs to remain viable in supplying even domestic demand for wood products. Some companies are already importing small quantities of logs and TIDD is working with the Customs Division to regularise such imports to enable the industry import larger volumes. [ITTO 15-30/11/13]


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25

ZAMBIA

Sawmillers Call For National Timber PolicyThe Zambia National Association of Sawmillers [ZNAS] has called for the formulation of a National Timber Development policy to enhance value addition in the wood processing industry to attract investment in wood processing. ZNAS is writing to the Cabinet proposing the development of a national timber policy. 100 ha of land has already been issued to sawmillers for the development of a timber cluster at Kapundu in Lufwanyama district. In 2013, 400,000 m of soft wood was consumed by timber processors countrywide down from 495,000 m in 2012. The decrease highlights persistent pressure in combating high levels of deforestation in rural areas. 80% of this wood processed in Zambia is recovered as timber while 20% is considered as waste material in form of sawdust. ZNAS has urged the Government to consider reversing the ban imposed on the issuance of customary land as the move is a threat to potential investment in the local timber processing industry. [Times of Zambia 17/12/13]

Zambia's Logging Ban Splinters A ban on new logging contracts has done little to slow deforestation or help local firms. The government has been seeking to bring more clarity and transparency to the sector but so far has been unsuccessful. Previously Minister of Lands, Wylbur Simuusa, cancelled all timber concessions, citing allegations of corruption and malpractice but after concerns that the government could be sued, it decided to only stop issuing new licenses.

The industry had expected Simuusa to lift the moratorium on new permits on 01/08/13 after the government received a report about the sector, but the ban still remains in force. The report seemed contrary to Simuusa's investigations giving the sector a clean bill of health. As Simuusa was contemplating the next course of action, he was replaced by Harry Kalaba. The government has since blocked applications by newcomers. Chinese company Xue Jiang Corporation applied to the Zambia Environmental Management Agency to harvest timber in the Petauke District, Eastern Province but the application has remained unprocessed. Analysts say the ban ban has done little to sanitise the sector as it only affected new applications, while licensed companies could continue to cut trees for export.

Zambia's last forest inventory was an integrated land use assessment in 2006. Most operations are based in Western and North-Western Province, where 165,000ha are under concession. The state-owned Zambia Forestry and Forest Industries Corporation holds the largest concession of 50,000ha. Companies exported about US$12m in timber in 2010. The UN Programme on Reducing Emissions from Deforestation and Forest Degradation estimates that Zambia has a deforestation rate of 298,000ha per year. The Zambian government is now reviewing a Zambia Development Agency Act to help bridge the gap between investment incentives given to local and foreign companies with the aim to let international firms in at a secondary level to help with value addition. Meanwhile Zambian loggers have called for exclusive rights to tree harvesting in the country, and for all timber to be exported via a central timber auction in Lusaka. [Africa Report 04/12/13]


TIMBER

26

Tobacco Companies Use Trade Regulations To Prevent Countries Adopting Anti-Smoking LawsAt least 4-African countries, Namibia, Gabon, Togo, and Uganda, have received warnings from tobacco companies that their laws violate trade agreements. As American smoking rates have plummeted, these countries have emerged as the largest potential growth markets. Tobacco consumption more than doubled in the developing world from 1970 to 2000. China and India have been driving most of the growth in recent years, but Africa is the next frontier. In Ghana, the smoking rate is only 8%, in DRC 14% and Nigeria 12%. Compare that with 31% in India, 56% in Malaysia and a whopping 61% in China. For example Philip Morris has recently attempted to sue the governments of Uruguay and Australia. [Slate 13/12/13]

TOBACCO


TOBACCO

27

TOBACCO


TOBACCO

28

AbidjanTema

Lomé

OnneApapa

Tin Can

San Pedro

Luanda

Walvis Bay

Dakar

Douala

Lobito

Namibe

Pointe Noire

Port Gentil

Libreville

Nouakchott

Banjul

Monrovia

Freetown CotonouConakry

Takoradi

Mombasa

Dar Es Salaam

BataMalabo

Boma MatadiCabinda

Soyo

Tanga

Nacala

Beira

Maputo

Kampala

Cape Town

Durban

East London

Johannesburg

Port Elizabeth

Pretoria

Harare Mutare

Nairobi

Blantyre

Lilongwe

Kigali

Lusaka

Lubumbashi

Ouagadougou

BoboDioulasso

Kinshasa

Bangui

Niamey

N'Djamena

Bamako

Kayes

MAURITANIAMALI NIGER

CHADSENEGAL

GUINEE

COTE D'IVOIRE GHANA

NIGERIA

CAMEROON

GABON CONGO

CAR

DRC

ANGOLA

NAMIBIA

SOUTHAFRICA

MOZAMBIQUE

ZIMBABWE

ZAMBIA

TANZANIA

KENYAUGANDA

GAMBIA

LIBERIA

SIERRA LEONE

TOGO

BENINBissauGUINEA BISSAU SikassoMoundou

RWANDA

BURUNDI

Bujumbura

Entebbe

Kadoma

Kitwe

Kolwezi

Jinja

SOUTH SUDAN

Juba

Likasi

MALAWI

Mzuzu

BOTSWANA

MaseruLESOTHO

SWAZILAND

Matsapha

Gaborone

Bulawayo

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