Grantee: The Eastern Africa Grain Council (EAGC)
Project name: “Development of structured Grain Trade System in Eastern Africa”
Grant amount: Phase 1: £1,300,000; Phase 2: £2,947,509
Project start date: Phase 1: 8th December 2014 (7 months); Phase 2: 1st July 2015 (2 years 6 months)
Countries benefiting: Kenya; Tanzania; and Uganda
Description of the organization:
The Eastern Africa Grain Council is a private sector, membership-based organisation registered in Kenya as a Company Limited by Guarantee and without share capital. It was registered in 2006 at the request, and through the efforts of, key stakeholders in all three sections of the grain value chain; producers, traders and processors. Service providers are Associate members. It operates as a non-profit, non-political, non-denominational organisation, which prepares, disseminates, and promotes the exchange of information on matters affecting the regional grain industry.
The Eastern Africa Grain Council (EAGC) through partnership with various industry stakeholders (Industry Grain Traders; Policy and Research; and Trade Information) will develop a private sector-driven, market platform that will link buyers and sellers in staple foods trade in Eastern Africa. The new G-Soko Platform will bring structure and consistency to trade in grains. It will facilitate title transfer, market transparency, and price discovery (perform a clearing function). Transaction costs will be reduced because coordination will be managed through a centralised exchange. Specifically, the G-Soko Market Platform will: Accelerate utilisation of grades and standards for maize and beans; Certify up to 100 regional warehouses and extend use of a regional warehouse receipt mechanism; Automate certified warehouses and link them to a transactional ecosystem (e-trade platform) involving all agents within the supply chain; Provide real time, transparent market and trade information through the platform to inform buyers and sellers on spot market conditions regionally; and Enable farmers to utilise the certified warehouses with a mechanism of accessing local financing from participating banks. In summary, G-Soko will ensure that farmers growing maize and beans in East Africa can sell their product across East Africa through regionally certified warehouses.