The African Continental Free Trade Area (AfCFTA), established in 2018, offers Kenya an immense opportunity to expand its tea exports and improve the livelihoods of its farmers. As the world’s largest free trade agreement, covering 54 of Africa’s 55 countries and uniting a market of 1.3 billion people, the AfCFTA is designed to boost intra-African trade by reducing trade barriers. For a country like Kenya, which is a major agricultural exporter, particularly in tea, this agreement could be a game changer.
Kenya is one of the seven countries selected to spearhead tariff-free trade under the AfCFTA’s Guided Trade Initiative. However, despite the promise of new market access and reduced tariffs, the implementation of the agreement has encountered significant logistical obstacles. A recent report by CNN, featuring a visit to Kenya’s tea-growing region of Kericho, underscored the complexity of these challenges.
During her visit, CNN’s Victoria Rubadiri spoke with Antony Kinara Margia, a seasoned tea farmer. Margia expressed optimism about the potential of the AfCFTA to open up new markets for Kenyan tea, but he also pointed out the immediate need for farmers to diversify their market reach and add value to their tea products. “Better returns for farmers may come from adding value to the tea and finding better markets,” said Margia, reflecting the frustration many farmers feel due to unfavourable prices in traditional markets.
The issue of logistics was echoed by Lindah Oluoch, CEO of the Kenya Tea Growers Association, who highlighted the delays encountered in delivering Kenya’s first tariff-free tea consignment to Ghana under the Guided Trade Initiative. The shipment took six months to reach its destination, far longer than expected. Oluoch stressed that better infrastructure, such as efficient road and rail networks, is essential for unlocking the full potential of the AfCFTA and allowing Kenya’s tea industry to thrive in new markets.
“The East African region already has the advantage of being united by tea,” Oluoch said. She pointed out the potential for East African countries to collaborate on improving trade infrastructure, such as creating a trade corridor or building rail systems that would drastically reduce transport times. This would enable faster delivery of products like tea, boosting competitiveness and increasing market access within the continent.
The AfCFTA is not just about tea, however; it has broader implications for intra-African trade. Erastus Mwencha, Chairman of TradeMark Africa, explained how the organisation has been instrumental in streamlining trade processes, particularly by developing one-stop border posts across East Africa. These efforts have significantly reduced transport times, cutting the journey for goods from Mombasa to Kigali from a month to just six days, offering significant savings in both time and cost.
Mwencha also discussed the importance of the Guided Trade Initiative as a pilot program, which has demonstrated that intra-African trade is feasible but requires further refinement. He emphasized that the challenges identified in the initial phase, such as delays and infrastructure deficiencies, can be addressed to allow Africa to fully exploit its market potential.
For Kenya’s tea industry, the long-term success of the AfCFTA hinges on overcoming these logistical barriers. While the trade agreement provides a framework for expanding market access and increasing exports, particularly to West African markets, the country must prioritize infrastructure development and supply chain efficiency to fully capitalize on the opportunity.
As Kenya continues to navigate the complexities of the AfCFTA, the focus on improving transportation networks and expanding market access will be essential for the long-term growth of its tea industry. By addressing these logistical challenges and diversifying its export markets, the AfCFTA presents a promising avenue for Kenya’s tea producers to enhance their returns, ensure sustainability, and strengthen their position in the global tea trade.
