What opportunities does the TFTA present?
Tomato imports into the TFTA were valued at $292.9 million in 2023, up from $143.6 million in 2014. Notably, the majority (77%) of these imports came from non-TFTA member states. The question is: are businesses within the TFTA prepared to capitalize on such opportunities?
The COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement, which officially came into force on July 25, 2024, is a transformative milestone in African international trade. Ratified by 14 out of 29 partner states, the TFTA establishes Africa’s largest free trade area. For the ratifying members, it unlocks significant opportunities to enhance exports.
Turning Food Waste into Gold
The EAC's Rising Demand for Animal Feed
EAC businesses have a lucrative opportunity to explore residues and waste from food industries for use in animal feed (HS code 23.09). Trade data shows a surging demand for these feeds in the EAC region. Import value skyrocketed from $19.9 million in 2014 to a staggering $177.4 million in 2022, reflecting a remarkable growth of 794.1%. HS code 23.09 covers a broad category of products in international trade known as preparations of a kind used in animal feeding.
These are not simply complete animal feeds like pet food bags on store shelves, but rather ingredients or additives used to create those feeds. HS code 23.09 specifically excludes dog and cat food prepared for retail sale.
China's Insatiable Demand for Sesame Seeds ( UGX 5.5 Trillion)
China's appetite for sesame seeds (colloquially known as 'simsim') has grown tremendously. In 2023, their imports were valued at $1.5 billion (UGX 5.5 trillion), a staggering 203% increase from just $500 million in 2010. As shown in Table 1, the top suppliers are Niger (20.3%), Pakistan (19%), Tanzania (15.7%), Sudan (11.1%), and Mozambique (10%). Interestingly, Pakistan saw the fastest growth between 2019 and 2023, with imports surging by a remarkable 204%.
COMESA: Untapped Potential in Sugars & Sugar Confectionery Products.
Between 2016 and 2022, imports of sugars and sugar confectionery products into COMESA witnessed a significant increase reaching a value of $3.7 billion in 2022