Export prospects for Africa's tea sector will be mixed
Significance The move will boost confidence in a sector beset by weak global prices -- averaging 2.26 dollars per kilogramme in the first quarter of 2016, compared to 2.98 dollars per kilogramme in 2015. The low prices are spurring governments to intervene. Impacts Tensions between Kenya and its neighbours over an oil pipeline may hurt cooperation on other export infrastructure projects. The African Growth and Opportunity Act forum later this year will provide a platform to boost SSA agriculture exports to the United States. In South Africa, planned legislation to limit the size of farms will deter investment from the agricultural sector. The entry into SSA of Western cafe chains, such as Starbucks and Paul, will increase demand for premium tea brands. Concerns over ethical sourcing practices will grow in Western economies, but enforcing 'fair trade' practices in SSA will face hurdles.