East Africa cross-border trade bulletin for December 2020

January 2021
26
292

The Market Analysis Sub-group of the Food Security and Nutrition Working Group (FSNWG) monitors informal cross-border trade of 88 food commodities and livestock in Eastern Africa in order to quantify its impact on regional food security. Recent updates indicate that:

  • Maize grain was the main commodity traded in the region between October and December 2020 (fourth quarter of 2020) followed by dry beans, rice and sorghum
  • Regional cross-border trade for most commodities increased between the third and fourth quarters of 2020 driven by traders' adaptations to operating under COVID-19 movement restrictions, increased demand in South Sudan, and increased import demand in Kenya in anticipation of increased import requirements later in 2021.
  • Livestock exports from East Africa to the Middle East declined in 2020 due to reduced demand linked to COVID-19. Livestock trade declined more than usual along all trading corridors following the end of the September high season, when trade often persists following the conclusion of Hajj religious festivities in the Middle East.
  • Staple food commodity parity price trends (expressed in US dollars per MT) followed seasonal trends during the fourth quarter of 2020. Prices remained high in Ethiopia, Sudan, and South Sudan relative to historical levels because of insecurity and high inflation. Prices are expected to vary across the region in the next nine months, trending seasonably.
Tags: FSNWG , food security , cross-border trade