Food imports from Uganda, Tanzania not necessarily a bad thing

Taita Hills hiding in the clouds. Weather does not allow us to grow enough food leading to importation. [XN Iraki, Standard]

Why we should celebrate food imports from neighbouring countries

Kenyans are unhappy with importation of food from Uganda and Tanzania. That includes poultry products, fruits and vegetables and even maize.

Towns like Mombasa would probably starve without northern Tanzania. For Mombasa, distance is the biggest advantage for northern Tanzania. If the railway was functional it would be cheaper to transport these foodstuffs.

I am curious why no one talks about revival of Mombasa-Moshi railway despite its strategic importance, first to win World War I and two in the spirit of East African community.

Historically, northern Tanzania seems more locked to the Kenyan coast than Nairobi, and Britons cemented that with a railway. Even culturally, they are close in language and culture. Were Germans using that link in their failed attempt to get Kenya in World War II?  

The importance of northern Tanzania to food security in Mombasa and its environs is natural; the coastal strip is not as endowed with rain and fertile soil like slopes of Mt. Meru and Kilimanjaro. The region from Nairobi all the way to Mombasa is arid or semi arid. The same applies to the region from these mountains to the Kenya coast.

For food from Uganda, it’s also about weather and more arable land like Tanzania. Most parts of Kenya are arid or semi arid. But it’s more than weather. The cost of inputs in Kenya like animal feeds and fertiliser raise the price of food stuff including poultry. Why else is poultry from Uganda cheaper despite everyone in Kenya   keeping chicken? Regulations and cartel like behaviour in agriculture make the sector uncompetitive.

Food is a sensitive and often a political issue, the reason the government is always in the maize, the country’s staple food. A hungry nation can be an angry nation.

But the importation of foodstuff from neighbouring countries should not worry us. We should celebrate it. Some will quickly talk about national pride, a country should feed itself, but we are not sufficient in life saving drugs. So, why should we worry about food? 

The best argument for importation of food is that we should let Ugandans and Tanzanians focus on lower levels of the value chain as we focus on the higher end. These countries enjoy comparative advantage in agriculture because of bigger farms, low population density and better weather which we can’t create. Irrigation can’t compete with natural rain.

We should let them focus farming as we either add value to those foods or shift to services or manufacturing where we enjoy a comparative advantage. To the best of my knowledge we have never fought with our neighbours and we are unlikely to fight with them.

There is no risk of our food supply being cut off.  Digression. Why did Tanzania, not Kenya send troops to dispose Idi Amin? Were we guilty, having trained him in Kenya to fight Mau Mau? Where are the children he fathered around Muranga? Can they contact me?

Our neighbours can farm as we manufacture or offer high end services like banking or ICT. Most of our exports to neighbouring countries are manufactured products and services.

Europe and the US import lots of food stuff from South America and other regions of the world while they focus on industrial products which have higher barriers to entry and are more profitable. And we can say it in whispers, we do not like farming. Seen a business card written “Farmer” as the profession?

We should take full advantage of the newly created Africa free trade area by focusing on what we are good at and exporting to the rest of Africa. After all, producing the same things as our neighbours has been our soft underbelly in Africa. It’s the undoing among the nascent economic blocks fronted by counties in Kenya.

USA has ridden on this specialisation with each state focusing on what they are good at. Idaho produces potatoes, California movies and wine, Florida is good at tourism, golf and space industry with SpaceX and Blue Origin having footprints there.

SpaceX is associated with Elon Musk more known for Tesla electric car while Blue origin has links with Jeff Bezos of Amazon. Mississippi has catfish, Texas has oil, and Kentucky has horses while Michigan has cars.

Maine has lobsters while Massachusetts has education. Other states have something to offer to the rest of the country and the world. Noted how India focused on pharmaceuticals and Japan electronics or France on perfumes and Dubai tourism? 

One can argue that Kenyan counties are specializing. This is based more on weather and natural endowment than innovation. Production is still at the lower end of value chain.

It’s more subsistence than industrial. Examples include; Kisumu for fish, Rift Valley for wheat and maize, Ukambani for tropical fruits, Kisii for bananas, Nyandarua for potatoes, Laikipia for beef, Konza as technical hub and Turkana for oil. What of your county?

In the long run, focusing on one product or sector benefits all players in trade. We benefit from learning curve effect, networks, better branding and lower costs. We master the supply chain and become globally competitive.

The newly created Africa free trade area will benefit the nations that are ready for it. We failed to make the best out of East African Community, before its break up in 1977 and revival in 1999. Why can’t we revive East African Airways and benefit from economies of scale?

What of all other common services? We are hostage of narrow national interests and lately country interests as the world moves in. We are even talking of revisiting moon and Red Planet.

The opportunities offered by seamless Africa free trade area and the global market thereof are too tempting to ignore. It will favour countries that have something to offer, a service or good.

That kuroiler from Uganda or maize from Tanzania should not annoy you. It’s the path to the new bold Africa free trade area, a bigger market, more jobs and happier nations. What do you have for offer to the new Africa free trade area?

-The writer teaches at the University of Nairobi Business School.