Agriculture and The Challenge to Reduce Poverty in East Africa

The three East African (EA) countries Tanzania, Kenya and Uganda have a population of about 95 million people and Gross Domestic Product (GDP) of USD 34.2 billion. In recent years efforts has been made among the three East African countries, towards forging economic and regional co-operation by establishing the East African Community (EAC). The premise for economic and regional co-operation has been underpinned for the need for a common market and boost regional trade. The ultimate goal of these efforts is to achieve one of the international development objectives of increasing growth to 7% a year that is required to reduce income poverty. One of the challenges that East African countries need to tackle in the face of globalisation is the ability to participate in international markets. East African countries have to make serious consideration with regards to changing the composition of their exports away from primary products to manufactured exports. Value addition to both agricultural and industrial products is vital to improving the EA economies. This paper examines the composition of East Africa’s economic structure. The aim is to analyse how the economic structure has changed over time, and to assess whether or not East African countries have transformed their agricultural sectors, and what the impact has been on poverty reduction in these economies.Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Relations/Trade, Land Economics/Use, Marketing, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies,

Urbanization and transformation of agri-food system: Opportunities for organic producers in developing countries

Developing countries especially in Sub-Saharan Africa are pronominally agricultural based. Where the majority of the population resides in rural areas and engaged in agriculture as a source of livelihood. However, recently there has been a growing debate globally on rapid urban population growth in developing countries. The aim of this paper is to present opportunities for organic producers emanating from transformations of agri-food systems in urban area. The paper is based on research activities of a project ‘Productivity and Growth in Organic Value Chains (ProGrOV)’. ProGrOV is collaboration between universities in Uganda, Kenya, Tanzania and Denmark addressing the need for sustainable development of smallholder farming systems in East Africa with focus on value chains for local high-value markets as well as export chains. The project addresses innovations for improving production as well as market access. The transformations of agri-food systems addressed in this paper resulting from urbanization are evidenced by proliferation of supermarkets, specialized organic-food shops, food supply to tourist industry and traditional farmer markets. Efforts for promoting organic products in East Africa have traditionally focused on export markets this paper based on evidence from ProGrOV studies argue that there is opportunity for developing domestic organic product value chains to meet the demand from urban population growth and transformed agri-food systems

Agriculture and The Challenge to Reduce Poverty in East Africa

The three East African (EA) countries Tanzania, Kenya and Uganda have a population of about 95 million people and Gross Domestic Product (GDP) of USD 34.2 billion. In recent years efforts has been made among the three East African countries, towards forging economic and regional co-operation by establishing the East African Community (EAC). The premise for economic and regional co-operation has been underpinned for the need for a common market and boost regional trade. The ultimate goal of these efforts is to achieve one of the international development objectives of increasing growth to 7% a year that is required to reduce income poverty. One of the challenges that East African countries need to tackle in the face of globalisation is the ability to participate in international markets. East African countries have to make serious consideration with regards to changing the composition of their exports away from primary products to manufactured exports. Value addition to both agricultural and industrial products is vital to improving the EA economies. This paper examines the composition of East Africa’s economic structure. The aim is to analyse how the economic structure has changed over time, and to assess whether or not East African countries have transformed their agricultural sectors, and what the impact has been on poverty reduction in these economies

Institutions, production and transaction costs in the value chain of organic tomatoes and sweet peppers in tourist hotels, Unguja and Arusha

The aim of this paper was to evaluate production and transaction costs in organic tomatoes and sweet peppers value chain. The study was conducted in Arusha and Unguja. A preliminary survey was conducted in 2014, and then a stratified sampling procedure was used to select a sample of producers, tourist hoteliers and suppliers. The regions Arusha and Unguja were selected purposively and key informant interviews and snowballing sampling procedures were also used. The Heckman’s procedure was used to analyze factors affecting the probability and extent of participation in tomatoes and sweet peppers markets. The probit results from the Heckman’s two-stage process show that ownership of assets such as storage facilities, transportation assets and being under contract farming or farmers cooperatives increased the probability of market participation, while the heckit results (OLS corrected for selectivity bias) shows that experience in marketing increased the quantities of tomatoes and sweet peppers marketed while high marketing costs such as mobile phone costs decreased the quantities of tomatoes and sweet peppers marketed. Organic producers’ cooperatives and collective marketing strategies are the possible solutions to reduce transaction costs, improve access to the tourism market, and increasing shelf life by having collective storage facilities and transport. Policy changes that will ensure producers sell under cooperatives and collective marketing strategies should be implemented to improve producers’ market access