New Era for the Ethiopia Kenya Corridor, EAGC and AGRA Launches Export Oriented Pulses Trade Project

Addis Ababa, Ethiopia - September 24, 2024 - The Eastern Africa Grain Council (EAGC), in collaboration with AGRA and support from the Mastercard Foundation, has today flagged-off a 3-year Ethiopia-Kenya Corridor Project under the theme "Stimulating Inclusive Export-Oriented Pulses Trade in the Northern Corridor of Eastern Africa." The project, inaugurated during a high-level inception workshop in Addis Ababa aims to increase trade, income, and job creation for youths and women in the pulses export value chain between Ethiopia and Kenya.

Ethiopia's pulses sector, the third largest in its agricultural export portfolio after coffee and oilseeds, plays a key role in the country's economy. As one of the top ten global producers, Ethiopia produced approximately 3.47 million metric tons of pulses in 2021, with projections indicating an increase to 3.78 million metric tons by 2026. However, with only 10% of this production currently being exported, there remains significant untapped potential. Meanwhile, Kenya, producing about 600,000 metric tons of pulses, faces an annual shortfall of 200,000 metric tons to meet its domestic demand, a gap that is exacerbated by the impacts of climate change.

"The launch of this project marks a critical milestone in our efforts to enhance regional trade and improve food security," said Gerald Masila, Executive Director EAGC. "By addressing the barriers that have historically limited the full potential of the pulses trade between Ethiopia and Kenya, we aim to create a more robust, inclusive, and profitable pulses value chain that benefits all stakeholders, particularly youths, and women."

In collaboration with Soil & More Ethiopia, and EPOSPEA, the project seeks to tackle key challenges within the pulses trade corridor, including low smallholder productivity, weak market linkages, inefficient input-output systems, and limited market knowledge. These barriers have resulted in inconsistent export supplies and a failure to fully exploit the trade opportunities available between the two countries.

Mekdes Girmaw, Head of Agrifood Systems and Manufacturing at the Mastercard Foundation Ethiopia, noted, "This partnership is poised to drive transformative change in the pulses trade between Ethiopia and Kenya, empowering youth and women with new opportunities." Similarly, John Macharia, AGRA Kenya Country Director, emphasized the collaborative impact, stating, "The collaboration will establish structured trade channels, creating a robust market for pulses and enhancing food security."

EPOSPEA's President underscored the need for aligning stakeholders to facilitate seamless trade, while Ethiopia's Ministry of Agriculture and Trade reaffirmed its dedication to creating a supportive trade environment. "Ethiopia has long been a leader in pulses production, but we recognize that more can be done to harness this potential for the benefit of our people and our economy," said Mr. Esayas Lemma Director of Crop Development, Ministry of Agriculture, Ethiopia. "This project represents a collaborative effort to address the challenges facing our pulses value chain and to build a more resilient future for our farmers and traders."

The project will implement targeted interventions such as trade facilitation through missions, B2B forums, and one-on-one linkages, alongside technical support and capacity-building for youth and women involved in the export value chain. Partnerships with the Ethiopian Ministry of Agriculture and Trade and other local entities will play a critical role in addressing regulatory hurdles and enhancing market access. Key beneficiaries include smallholder farmers, youth, women, exporters, and service providers across the value chain, with anticipated outcomes of increased trade, improved income, and job creation.

"MasterCard Foundation is proud to support this initiative, which aligns with our commitment to creating opportunities for young people and advancing inclusive economic growth," said Country Representative for Mastercard Foundation. "The involvement of youths and women in the pulses export sector is crucial for driving innovation and sustainability, and we look forward to seeing the positive impact this project will have on their lives and communities."