EATTA calls for resolution as Sudan bans Kenyan tea imports

The East African Tea Trade Association (EATTA) is facing a challenging situation as Sudan recently imposed a trade ban on Kenyan tea imports. This move has left shipments stranded in Mombasa warehouses and on ships, posing significant financial risks to Kenyan tea farmers. George Omuga, Managing Director of EATTA and overseer of the Mombasa Tea Auction, shared insights on CNBC Africa about the efforts being made to address this trade impasse. EATTA has been actively engaging both the Kenyan and Sudanese governments to seek a diplomatic resolution to the issue. The organization has urged for a one-month window to clear the tea imports from various points to mitigate the losses associated with the sudden ban. While progress is yet to be seen, EATTA is emphasizing the importance of ensuring trade is not adversely affected between the two countries. Omuga highlighted the need for diversification in export markets and product offerings to reduce reliance on traditional markets and black CTC tea. This strategic approach aims to safeguard African tea exporters from similar risks in the future. With unique tea blends tailored for specific markets like Sudan, EATTA is advocating for the export of the held tea in Mombasa warehouses to Sudan to avoid economic challenges arising from diverting them to other markets. In the event that diplomatic efforts fail, alternative markets will be explored to prevent substantial losses. Omuga also emphasized the role of regional trade blocks, stressing the importance of leveraging the African Continental Free Trade Area agreement to facilitate more predictable and stable trade flows within the East African region. By tapping into the vast African market, the tea industry can navigate challenges posed by trade bans and diversify its export destinations. Through collaboration with commerce and effective utilization of regional economic blocs, EATTA aims to address the current trade impasse and protect the interests of Kenyan tea farmers and exporters. While uncertainties loom over the future of Kenyan tea exports to Sudan, EATTA remains resilient in its pursuit of diplomatic solutions and alternative strategies to safeguard the tea industry's sustainability and growth.