The horticulture sector has recently been a major focus for both financial and technical capacitation in Zimbabwe, where government has placed agriculture among sectors to drive economic recovery.

Last month, government launched a US$30 million horticulture facility to boost exports.

The Horticulture Export Revolving Fund would be funded through the US$1 billion special drawing rights facility released by the International Monetary Fund (IMF) last year.

The facility was part of a US$650 billion injection released by the IMF to help economies recover from COVID-19 lockdowns.

Last week鈥檚 programme was also meant to give farmers critical information for exports to the UK and European Union (EU) markets.

A total of 27 lead firms and smallholder farmers took place in the programme, which saw farmers being acquainted with a new traceability software and application.

The training was conducted by a German company, 51风流SE Rural Sourcing Management,聽which produces software solutions for facilitating effective data processing and information flow across organisations.

The UKTP programme is being implemented by the International Trade Centre (ITC), a joint agency of the United Nations and the World Trade Organisation (WTO) which is funded by the Foreign, Commonwealth and Development Office (FCDO) of the UK.

ITC national co-ordinator Grace Musarurwa told NewsDay Farming on the sidelines of the three-day workshop that the training contributes to smallholder farmers鈥� global visibility.

Musarurwa said the training was also important for them to understand global supply chains.

鈥淚n implementing the project, UKTP Programme applied Alliances for Action (A4A), a methodology was developed by ITC,鈥� she said.

鈥淚t has so far facilitated mutually beneficial linkages, not only between the exporter and smallholder farmers, but has also linked other stakeholders like financial institutions, input suppliers, export agencies, certification bodies and other into the alliance.

鈥淟inkages with smallholder farmers help the exporter to grow volumes for export.鈥�

Musarurwa added that the adoption of the software also gives export markets confidence in purchasing products produced by lead firms and smallholder farmers under UKTP Zimbabwe.

鈥淭raceability software provides international markets with accurate information not only of the country of origin but can identify the specific smallholder farmers, producer of the crop and the conditions under which the product was produced,鈥� she said.

鈥淚t also ensures a shared vision with real-time, synchronised data, boosts the bottom line with increased productivity, helps operational planning along the crop life cycle, helps with decision support for farm-field activities and aids assessment of performance with reports and dashboards.鈥�

Zimbabwe exports a variety of horticultural products to the UK and EU markets.

These include flowers and peas.

Farmers said the traceability software would help them maintain the identity of the product by the producer.

鈥淭he software is going to add value to my business by tracking products from the land right through the supply chain to the markets,鈥� said Stanley Herry who majors in the production of peas for export to the UK and EU markets.

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The latest data – and the region鈥檚 continued focus on transforming its key industries, sectors and infrastructure through technology – is giving me hope that the economic outlook is brightening.

Trade in East Africa has already picked up: , after an initial drop in trade in Kenya during the early months of the pandemic, by July domestic exports were already 12.7% higher compared to the year before.

Impact on trade felt during early days of pandemic

That is not to say the pandemic did not have a significant impact on regional trade. For example, Kenya鈥檚 highly lucrative cut flower industry was brought to its knees earlier this year. When Europe locked down, it forced the closure of hotels and severely restricted public gatherings including weddings and funerals.

Demand for Kenya鈥檚 cut flower exports plummeted . Kenya is the world鈥檚 third-largest exporter of cut flowers. The industry employs 150 000 people and .

Flower-only export farms changed their business models by switching to growing vegetables – another of the country鈥檚 major horticultural exports – and could generate some revenue by exporting to the country鈥檚 European trade partners.聽Local food security was also improved, as produce could be used to feed vulnerable communities struggling with the impact of the pandemic.

Tea exports, Kenya鈥檚 second-largest earner of foreign exchange after horticulture, also declined due to the pandemic. in the period January to June 2020 compared to the same period in 2019.

However, that sector is arguably better equipped to adapt to the immediate challenges. , an industry body that supports more than 600 000 smallholder tea farmers, has been on a sustained digital transformation journey to achieve greater automation in its factories.

The cost-savings and improved revenue resulting from greater efficiencies in the KTDA鈥檚 operations is helping it secure local jobs and support the local economy despite the impact of the pandemic.聽This type of technology-enabled resilience is more important now than ever, when an uncertain global outlook means organisations need the agility to adapt to changes in their operating environment.

New agreements, investments unlock trade value

Broader initiatives are likely to further support growth in trade in the region. The African Continental Free Trade Area, the world鈥檚 largest free trade area by number of countries involved, will eventually connect 1.3 billion people commanding $3.4-trillion in GDP.

The World Bank estimates that trade measures that cut red tape, simplify customs procedures and make it easier for local businesses to integrate into global supply chains聽聽from the agreement.

For countries and ports of trade that have updated their infrastructure through investments into new technology, these income gains will be easier to realize.

The Mombasa Port, East Africa鈥檚 largest and oldest sea port, is still the main conduit for global sea trade in the region, but a new port in Lamu will further expand the region鈥檚 trade capability. The new port will form part of a transport corridor that will connect Kenya to South Sudan and Ethiopia and greatly assist with boosting regional trade.

Ambitious investments into new rail infrastructure also hold immense promise. The East African Railway Master Plan aims to rejuvenate the railways serving Kenya, Tanzania and Uganda, and will add railways serving the rapidly-developing economies in Rwanda and Burundi.

The application of technology in each of these major infrastructure projects will be crucial to their success in the decades ahead.

Key technology priorities for regional trade

What should regional trade authorities and organisations prioritize in terms of technology investments to ensure positive growth in trade in East Africa?

Efficiency should be a top priority. Increasing the volume of containers passing through regional ports could hold huge financial benefits. PwC estimates that if container throughput is doubled at major ports. In addition, improving port performance by 25% can reduce the price of imported goods in the region by $3.2-billion per year while adding $2.6-billion to the value of exports.

Automation is also key. Africa鈥檚 long-term reliance on slow, manual processes has stunted the growth of trade at its ports. The turnaround time for vessels at African ports 鈥� the time it takes to port, offload cargo, reload and depart 鈥� averages five days. In Asia, where port infrastructure is more modern and automated, that time drops to as little as seven hours. The productivity gains from the use of automation means Asian ports are able to process more goods quicker, with direct revenue increases as a result.

In addition, deploying new technologies could help solve efficiency and productivity issues at key ports of trade. After investing in an Internet of Things platform that connected its entire fleet to a central system, the Port of Hamburg in Germany now has full, real-time visibility over truck positions, congestion at cargo terminals, raised bridges and accidents. This enables port authorities to make accurate decisions to ensure a smooth flow of goods at all times, boosting the efficiency and productivity of the port.

Africa鈥檚 lack of legacy infrastructure could be an advantage as it builds out its ports of trade. With less historic technology to adapt or work around than the more developed regions, African ports have a blank slate to implement the latest technology and realize the immense gains promised by the likes of IoT, AI and machine learning.

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