BLOG

Eastern Africa’s grain industry amidst challenges and opportunities

11 September 20242 min reading N. Kemal PARLAK

As the heartbeat of Eastern Africa’s agribusiness, the grain sector stands as a cornerstone of the region’s economic and food security. Yet, beneath its robust exterior lies a landscape marked by both formidable challenges and exhilarating opportunities. In our August issue, we delve into the evolving dynamics of this critical industry through an insightful interview with Gerald Makau Masila, the Executive Director and CEO of the Eastern Africa Grain Council (EAGC).

Masila, who has helmed the EAGC since 2011, provides a comprehensive overview of the sector’s current state, emphasizing the region’s vast agricultural potential and the hurdles it must overcome. Despite the obstacles, Masila remains resolute in his optimism about Eastern Africa’s future in the global grain market.

Eastern Africa, blessed with over 60% of the world’s arable land, holds immense promise for large-scale agribusiness. Masila underscores the significance of regional partnerships and infrastructure projects in unlocking this potential. He notes a burgeoning demand for drought-resistant crops like sorghum and millets, which presents new export opportunities. 

However, the path to prosperity is fraught with challenges. Trade policy discrepancies, limited storage infrastructure, and unpredictable export and import bans are major hurdles. These issues not only complicate investment decisions but also contribute to higher consumer prices and market instability. The informal nature of cross-border trade and the bureaucratic barriers within countries further exacerbate these challenges, making it difficult for stakeholders to navigate the grain value chain. Masila emphasizes the importance of partnerships and a deep understanding of local contexts to achieve success in the African agribusiness sector.

As Eastern Africa charts its course toward a more competitive and sustainable future, the grain industry remains a pivotal element in the region’s economic and food security strategy. By confronting current challenges and seizing emerging opportunities, Eastern Africa is poised to make a significant impact on both regional and global grain markets.

For those invested in the future of agribusiness, Gerald Makau Masila’s insights offer a valuable perspective on the evolving dynamics of Eastern Africa’s grain industry, highlighting the region’s potential to shape the future of global food security.

Articles in Editor Category