Annual Report & Financial Statements

Transcription

1 Annual Report & Financial Statements 2016 A Decade Stronger

2 VALUED PARTNERS

3 Table of Contents Overview 2 Corporate Information 2 Notice of Annual General Meeting 3 Chairman s Statement 12 Board of Directors 14 Executive Director s Report 23 EAGC Secretariat 28 Regional Agricultural Trade Intelligence Network (RATIN). 29 EAGC G-SOKO Online Trading System 31 Agricultural Trade Policy Advisory Forum - Eastern and Southern Africa (ATPAF-ESA) 33 Eastern Africa Grain Institute (EAGI) Financial Accounts 71 EAGC Membership 82 Selected EAGC events and activities in 2016 Annual Report & Financial Statements,

4 CORPORATE INFORMATION & NOTICE OF THE 11TH ANNUAL GENERAL MEETING REGISTERED OFFICES OF COMBINED ENTITIES Eastern Africa Grain Council (Kenya) Lavington, Mbaazi Avenue, off Kingara Road P.O. Box 218, NAIROBI Eastern Africa Grain Council (Uganda) Plot 958 Galukande close muyenga Opposite Kironde road P.O Box Kampala Eastern Africa Grain Council (Tanzania) Sinza Mori, Plot No. 16, Block A P.O. Box Dar Es SalaamTanzania Eastern Africa Grain Council (Rwanda) EAGC Office, No. 2 KG 38 Street, Kimironko Gasabo District P.O Box 4497 Kigal, Rwanda Eastern Africa Grain Council (South Sudan) Hai amarat, Dehavana lounge next to lugali house Po.Box, 505 Juba -South Sudan Tel: / PRINCIPAL BANKERS Eastern Africa Grain Council (Kenya) Commercial Bank of Africa Limited NAIROBI Equity Bank Limited NAIROBI Eastern Africa Grain Council (Uganda) Standard Chartered Bank KAMPALA Eastern Africa Grain Council (Tanzania) Bank of Africa DAR ES SALAAM Independent auditor PKF Kenya Certified Public Accountants P.O. Box 14077, NAIROBI Company secretary Swift Secretaries & Registrars 3rd Floor,Geminia Insurance Plaza, Mara Road, P. O. Box Nairobi, KENYA. Tel: /9 Fax: kkadvocates@nbi.ispkenya.com TO: ALL MEMBERS OF THE EASTERN AFRICA GRAIN COUNCIL (EAGC) Dear Members, RE: NOTICE OF THE 11TH ANNUAL GENERAL MEETING NOTICE is hereby given that the 11th Annual General Meeting of the Council will be held at The Boma Hotels, Nairobi, Kenya on Thursday, 20th April 2017 at 9:00 am. AGENDA 1. Adoption of the Agenda To receive, consider and adopt the Agenda for 2017 Annual General Meeting. 2. Confirmation of Minutes To receive, consider, confirm and adopt the minutes of the 10th Annual General Meeting held on 29th April Chairman s Report To receive the Chairman s report. 4. Executive Director s Report To receive the Executive Director s report EAGC Audited Accounts To receive and adopt the Audited accounts and Auditors report for the year ended 31st December Appointment of Auditors Members to allow the Board to appoint and fix the remuneration for the external auditors for the financial year ending 31st December Q & A Session Members to allow the Board to appoint and fix the remuneration for the external auditors for the financial year ending 31st December By Order of the Board 8. Election of Directors To receive nominations and conduct elections for Directors. By Order of the Board Gerald Makau Masila Executive Director/Board Secretary Monday, 27th February Annual Report & Financial Statements, 2016

5 Our considered position, as the Board of EAGC, is that the sustainability and stability of EAGC will only be brought about through service delivery to you the members. The core service of EAGC as you all know is to facilitate an efficient, structured, inclusive and profitable grain trade in the Eastern Africa region and beyond. Annual Report & Financial Statements,

6 CHAIRMAN S STATEMENT We continued to pursue the vision of the EAGC as the leading voice of the grain industry in Africa and indeed continued to provide a voice to you the member B2B Forums contracted to trade over 275,000MT of food grains in 2016 We are now A Decade Stronger. due to our achievements in the last 10 yrs The current strategic business plan, EAGC , is ending this year. Introduction I wish to welcome you all, dear members of the Eastern Africa Grain Council, attending the 11th Annual General Meeting taking place today the 20th day of April 2017 here in Nairobi, Kenya. It is indeed very rewarding and encouraging to see members turn out in such good numbers in person and through proxys to attend this very important meeting, which is the supreme governing organ of the Council. I wish to most sincerely thank you dear members, for the honor and responsibility that you have bestowed on me to serve you as the chairman of the Board of Directors of EAGC for the last three years. Today marks the end of my term as chairman, and I will be handing over to a new chair after the elections. Today will mark the fifth transition of the Board, as the new chair person being elected at the 11th AGM of EAGC, will be the fifth after the founding team chaired by Mr. Mogere, the then MD of National Cereals and Produce Board -NCPB, the 2nd Board chaired by Mr. Nick Hutchinson, Group MD Unga Group and is also the current chair of the Cereal Millers Association in Kenya who are affiliate members of EAGC, the 3rd Board chaired by Mr. Judah arap Bett, the Chairman of Toror Grain and current MD of ESRI East Africa and the 4th Board chaired by myself, Dr. Otim Bernard, MD Farmers Centre Uganda Limited. It is at the AGM where members receive and reflect on the performance of the Council in the year that has passed, consider and approve reports of the independent auditors on the financial performance of the organization and also consider and approve any other constitutional proposals with regards to the mandate, objectives, vision and mission of the Council. I am therefore pleased to present to you members, the report of the performance of EAGC during 2016, share some of the challenges that we have faced and give an outlook for the coming year and beyond. 2. Membership & Members Services/ Benefits During 2016, EAGC remained focused and committed to its mandate. The efforts of the Board and the Secretariat continued to be directed to provide benefits and value to our esteemed members of EAGC. We continued to pursue the vision of the EAGC as the leading voice of the grain industry in Africa and indeed continued to provide a voice to you the member, by 4 Annual Report & Financial Statements, 2016

7 CHAIRMAN S STATEMENT among others, representing you in various policy making fora with the aim of continuing to engage and dialogue with the policy makers to provide you an enabling policy environment, providing incentives and protection for your investments in the grain sector and continuing to pursue a predictable, rules based, transparent and equitable policy environment for the entire grain sector value chain from the farmer to the consumer. Growth in membership has remained a key focus area for us at EAGC. During 2016, EAGC was able to establish operations in Malawi where we opened a country office, recruited staff and registered new members to EAGC, fully incorporating Malawi in the fold of EAGC. The reasons why members join EAGC is so that they can receive the many benefits that the Council strives to offer its members. We join EAGC because, first of all, we have an interest in the grain sector, as grain farmers/producers, as traders and warehouse operators and commodity aggregators, as millers/processors and as service providers including finance, insurance, transport and logistics, quality assurance and inspection, business development and consultancy among others. Dear Members, you will agree with me that in the year 2016, we have been active participants in the EAGC activities and interventions and we have benefitted immensely. To single out a few; Market Information & Intelligence We have continued to receive market information through the EAGC RATIN Market Information service, providing us with data on market prices from the various key markets in the region and cross border trade volumes for both formal and informal trade. The RATIN network and system delivered in full for the entire year and members continued being informed. The secretariat also continued to update the members on monthly basis and regularly informing us about the various issues that the Secretariat was engaged in on our behalf and with our participation. Through this continued information and market intelligence, members have been able to take better decisions in our various businesses. We now know better which grain to produce, when to produce, for whom and at what indicative prices. We are therefore empowered by being informed and enlightened about the happenings and opportunities in the sector. Structured Grain Trading Members have also continued to benefit through the various networking and business to business connections that EAGC organizes for us the members. Promoting a structured, orderly, organized and formal trading system with clear trade contracts and an arbitration mechanism continues to be at the core of EAGC. Members participated in all the Business to Business Forums that were for in-country trade, and also for cross border trade opportunities. The B2Bs forums during 2016 included Tanzania vs Malawi, Tanzania vs Kenya, Tanzania vs Rwanda and Burundi, Uganda vs Kenya, and most recently, Ethiopia vs various countries in the Eastern Africa ( Uganda, Kenya, Rwanda, Tanzania) where we members of EAGC contracted among each other to trade over 275,000MT of food grains, worth over 80M USD. I see this as a very noble and timely service of the B2B trade facilitation offered to us the members, by EAGC. We also know that EAGC TRAFA service is driving transformation in grain trade and will be a central feature in the future of EAGC. Annual Report & Financial Statements,

8 CHAIRMAN S STATEMENT The B2B Trade linkages is a very beneficial service that we the members of EAGC can benefit from as it goes to the core of our existence and directly contributes to the bottom line, the profitability of our businesses, particularly the producer farmer groups. I therefore urge all the members to please turn out in large numbers to participate in the B2B market place whenever it is organized, to find out what commodities the markets require, what varieties, what quantities, and then negotiate prices and sign contracts for immediate of future deliveries. Being able to trade together and increasing intra-regional and intra African trade, ladies and gentlemen, is the only way that we in the African continent will get out of poverty. I therefore want to support and echo, those great Africa leaders who have said, time and again, that what Africa needs is Trade. The recent development by EAGC of the GSoko Online Grain Trading Service, is an innovation that is already transforming the trade in food grains in Africa. It is the first of a kind, a true innovation, conceptualized by us the members of EAGC and it is a tool for us members to use to trade with each other. We appreciate and thank our development partners, particularly the UK DFID through the FoodTrade ESA Project, who have supported EAGC with substantial financial resources which have enabled EAGC to design, develop and deploy the ICT system for GSoko Online, and also enabled the inspection and certification of many warehouses now connected in GSoko Online. The GSoko Service is now complete, fully functional and has been doing online trading every week for the last four months. The maiden transaction was in October 2016, where 10 MT of green grams in a warehouse in Uganda, was traded through Katine Joint Cooperative owned by small holder farmers who aggregated the produce. The green grams were bought by a grain trading company in Kenya, and the payments was settled through the GSoko clearing and settlement account. We celebrate this maiden trade as it completed the circle in GSoko. GSoko is for you members to use, to trade buy and sell - your grain produce, within your country, or across the borders in the Eastern Africa region. GSoko is the bridge between the sellers and buyers of grains. It protects the interests of both the seller and the buyer and eliminates counter party default. GSoko ensures that when I sell my produce, I get paid, on time, in full. GSoko ensures when I buy produce, I get the quality and quality that I bought, on time, and in full!. Before EAGC came up with GSoko, many traders suffered failed trade deals. We sent advances to sellers to supply us with commodities. We lived in anguish not knowing if the seller will indeed supply what we have agreed, on time and in the quality and quantity that was agreed. We also supplied commodities to buyers including processors, in the hope of being paid soon after making the supplies. Then you receive the dreaded call, that your produce has been rejected!, come and collect it!, that your produce did not meet the required EAC quality standards, we must renegotiate prices. At best, you were told, yes your produce has been accepted so please wait for payment next week. Next week comes and no payments come through. You take the phone and call your contact. 6 Annual Report & Financial Statements, 2016

9 CHAIRMAN S STATEMENT The phone is not answered! You wait for days to get your payment. The waiting to be paid translated into losses, as you end up losing time value of money. The woes were innumerable! EAGC GSoko online grain trading service, ensures that the commodity being traded is physically present in a certified warehouse and has been graded and tested and meets the harmonized EAC quality and food safety standards. It therefore guarantees quality and quantity. EAGC GSoko online grain trading service, offers an opportunity for banks and financial institutions to provide trade finance services to EAGC buyers by financing the buyers or sellers and providing them a fully secured and collateralized credit to buy grains through GSoko. GSoko is not a dream. It is not some wishful thinking. It is a reality!. I can only invite those other members who have not yet registered in GSoko to trade buy and sell to join and experience the new world of grain trade offered by the Eastern Africa Grain Council, through GSoko Online. EAGC GSoko online grain trading service, ensures that a buyer coming in to buy grains through the system is first and foremost, a member of EAGC and subscribes to highest ethical and moral standards in carrying out the trade and are not out to defraud anyone in the system. GSoko ensures the buyer bidding for the commodity, has the financial capability to pay for the commodities they are bidding for. It ensures that once a commodity is bought, before it is delivered, the funds are deposited in full, in the GSoko clearing and settlement account. GSoko ensures that once the buyer takes delivery of the produce, the seller is paid immediately the goods receipt confirmation is made. 3. Institutional Strengthening and Capacity Building of EAGC In my tenure as the Chairman of EAGC, I have come across many people who have had various opinions, remarks and views about EAGC and how we continue to govern and manage the institution. Some have raised issues with regard to the sustainability of EAGC. Others have expressed serious doubts with regard to the survival of EAGC without donor support. Therefore, we all must accept the fact that if EAGC will continue to be our organization, if you as a member will continue to have a say at EAGC and determine the direction and the future of EAGC, if EAGC will continue to Annual Report & Financial Statements,

10 CHAIRMAN S STATEMENT provide benefits to you as members, if you want to call the tune of EAGC and at EAGC, we must be prepared and pay the piper so we can call the tune. Our considered position, as the Board of EAGC, is that the sustainability and stability of EAGC will only be brought about through service delivery to you the members. The core service of EAGC as you all know is to facilitate and efficient, structured, inclusive and profitable grain trade in the Eastern Africa region and beyond. Therefore the cord that binds all of us together at EAGC is GRAIN TRADE!. All we are here for it to make trade happen! We are here to trade together. In order that we trade and continue trading, we need an enabling policy environment, with minimum barriers and restrictions. We also need information and intelligence and we need the skills and knowledge. This is what EAGC provides to us the members. Time has now come, as we celebrate our 10 years Anniversary, to decide on what we want for our businesses and by extension for the EAGC in the next 10 years and beyond. It is just natural that a child is born, is weaned and eventually must stand up, go out and fend for itself and eventually even support the parents. The opportunity is now here with us, to dream and dream big, and then with zeal and determination, implement the dream. We have achieved a lot in the last 10 years of EAGC and we are now a decade stronger. We have built the foundations, the structures, policies, procedures and systems to actualize our object of existence trade facilitation. A quick stock take at EAGC will reveal that; Board Governance We have a strong membership and we continue to grow the membership base from which the mandate and legitimacy of EAGC is derived. From the membership, we have had successive Board of Directors, providing leadership and governance to EAGC in a very transparent, democratic and professional manner. Today as we host the 11th AGM of EAGC, we will be witnessing the 5th transition of the Board and will inaugurate a new Board, with a number of Board members continuing to serve to ensure continuity and institutional memory. That we have been able to transition the Board and pass the leadership mantle four times, in the last 10 years is a clear testimony of the maturity and high level of corporate governance at EAGC. Secretariat & Management Team, We have a strong team of seasoned professionals at the EAGC Secretariat and office presence in 7 out of the 10 EAGC countries. We will open offices in the remaining three countries Ethiopia, Zambia and DRC Congo during this year 2017 and employ staff to serve members in these countries. We are strengthening our presence at the country level while improving coordinate at the regional level to harmonize policies and facilitate cross border trade. Service Delivery We have in the last 10 years, developed various interventions, products and services at EAGC, essentially for our members who are the primary constituents of EAGC, but also to other stakeholders. We have developed very promising trade facilitation services, through development and promotion of structured grain trade through postharvest handling and management, development and harmonization of grades and standards, grain storage and warehousing, trade business to business linkages and the 8 Annual Report & Financial Statements, 2016

11 CHAIRMAN S STATEMENT ultimate being the GSoko online grain trading platform. We have a premier market information system, the longest running in the region EAGC RATIN. We have our specialized capacity building and training institute the Eastern Africa Grain Institute EAGI, offering unique courses in grain trading not only in the region, but in the entire African continent. We have a strong policy advocacy platform the Africa Grain Trade Summit AGTS and the Agriculture Trade Policy Advisory Forum for Eastern and Southern Africa ATPAF-ESA. The policy advocacy of EAGC has delivered harmonized grades and standards, opened borders for trade, minimized and even obtained import duty waivers and spearheaded development of various legislation and policy matters in the region. In short, ladies and gentlemen, we have assets at EAGC that we have diligently developed in the last 10 years, with participation of you the members, and with support from our various development partners. The sustainability of EAGC is now no longer in doubt, with such an asset base. All we now need to do is to optimize the use of our assets so that they can work for us, support our businesses to grow and in so doing also ensure the financial sustainability of the EAGC as an organization by being able to meet the operational costs of the EAGC Secretariat that is providing core services to members. The future and sustainability of EAGC will be derived from the combined worth of the members of EAGC and their continued growth. EAGC sustainability will be made possible through service delivery to members. The services will enable a modest cost recovery on fees charged to members for the services. This is the way that EAGC members will pay the piper, to call the tune. An example of how we will achieve this is the recent B2B trade facilitation forum that EAGC hosted in Ethiopia with support from the USAID EATIH, where, as mentioned earlier, the EAGC members present at the forum signed 275,000MT of food grains worth an estimated over USD 80Million. If we members paid a very modest/ minimal fee to EAGC for the facilitation of a mere 1%, that would translate to USD 8 Million, for the Secretariat operations to continue providing the service. This is a clear demonstration that EAGC is and can be sustainable, and this can be done without any strain to the members. 4. Future Outlook I am pleased to report to you that the Board of EAGC recently considered and approved the creation of a commercial investment arm of EAGC. This investment will consolidate all the revenue generation through service delivery, for EAGC and develop investment vehicles to reinvest the surpluses to be ploughed back to offer services to EAGC members. The new investment will also seek suitable partnerships to combine forces and develop join ventures, basically aimed at enhancing services to EAGC members, while recovering costs and ensuring efficiency so as to generate surplus returns for further re-investment. The current strategic business plan, EAGC , popularly known and EAGC SBP II is ending this year. We are now in the process of developing the EAGC SBP III, which will seek to reposition EAGC from the nascent stages to a mid-level to mature status focusing purely on service delivery, with the sources of revenue being fees for services with trade promotion being at the core of the services. This new strategy will call for a complete overhaul, redesign and restructuring of the EAGC Secretariat to be re-oriented to be a focused service Annual Report & Financial Statements,

12 CHAIRMAN S STATEMENT delivery organization. This will also mean a re-evaluation and development and a new strategy for engagement of development partners as well as the terms of engagement which generate a win-win situation for EAGC, the partner and other stakeholders at large, particularly when the outcomes of the activities and interventions generate a public good. The new strategic plan for EAGC will build on the successes achieved in the last 10 years and will continue to address the persistent challenges in the grain sector in the Eastern Africa region, and in Africa at large particularly in removing barriers to trade in order to increase cross border trade in food grains. Increasing usage of the EAGC GSoko online grain trading and the EAGC B2B Trade Facilitation TRAFA, to increase the numbers of actors buyers and sellers and increase the variety, volume, value and velocity of trade will be a key priority. Capacity building and provision of market information to stakeholders, particularly the small holder farmer groups to increase formation of the farmer based organizations, establishment of village aggregation centres, bulking of produce for increase economies of scale, improving post-harvest handling and reducing postharvest losses will provide increased volumes for trade through the various systems. and others to make a contribution to the governance of EAGC for the benefit of the members. The Board met regularly as stipulated in the EAGC memorandum and articles of association and endeavored to carry out its business to the best interest of EAGC and to benefit you the members. I salute the other three members of the Board who will be retiring with me from the Board today, my Vice Chair, Gabriel Kitenga,(Kenya) and who also chaired the Board Membership and Programs Committee, Amb Idro Phillip (Uganda), who was the chair of the Board Audit Committee, Mr. Abel Lymo (Tanzania) and Mr. Fernie Krugger (Kenya). The outgoing directors, will continue to serve as members in their respective Country Program Committee (CPC) for a period of two years for continuity and to strengthen the EAGC operations at the Country level. I am confident that with the number of Directors continuing to serve and eligible for re-elections, Mr. Isaac Chege,(Kenya) Treasurer and Chair of the Board Finance and Strategy Committee, Mr. Munir Thabit (Kenya), Mr. Eugene Rwibasira, (Rwanda), Mr. Julius Wambura (Tanzania), and Mr. Evarist Silayo (Tanzania). 5. Conclusion I take this opportunity to pay tribute and appreciate all of you for the support you have accorded me as your chair for the last three years. Once again I thank the members for the opportunity to serve you, and I do hope I met, if not exceeeded your expectations. I thank my colleagues, members of the Board of Directors of EAGC with whom I have worked very closely in undertaking this voluntary service to members of which we sacrificed our time and energy and applied our resources, social capital I appreciate the team of professionals that the Board has engaged to serve in the secretariat at the various country offices and at the regional head office, whom I have very much enjoyed working with all through the years. We have an energetic, focused, young, agile, respectful, skilled, knowledgeable, educated, professional and very pleasant team at the EAGC secretariat. I urge you to keep up the good work, continue upholding the highest standards of transparency, accountability and professionalism and continue service the members of EAGC with diligence. 10 Annual Report & Financial Statements, 2016

13 CHAIRMAN S STATEMENT We appreciate what you do in finding opportunities, opening the doors, leveling the playing fields for our businesses in the grain sector to thrive, as this is the reason why EAGC exists. To our valued development partners who have been with EAGC since its formation 10 year ago, and have stood by us and watched us grow over the years, we thank you very much. You have believed in us, you have challenged us, and you have held us by the hands all through. We believe we have not disappointed, as we have always delivered on all our promises and even surpassed expectations, moreover when times have been difficult and circumstances, particularly trade restrictions which have bogged us down. We thank you the Swedish International Development Agency (Sida), for standing with EAGC right from the beginning and funding our first ever five year strategic plan EAGC SBP I , and also funding the current EAGC SBP II You have been our most consistent and stable partner, providing EAGC with core funding aimed at strengthening EAGC as an institution. Your support has seen EAGC leverage many more partners and increased funding creating a high multiplier effect that has enabled EAGC grow and be in a position to sustain itself into the future. Once again accept our most sincere appreciations. The UK DFID funded FoodTrade Eastern and Southern Africa project, we appreciate your support particularly to GSoko, and being the largest donor to EAGC in GSoko, your flagship project is now completed and operational and is promising to transform grain trade, being a first in Africa if not in the world. Going forward GSoko will be run under the new commercial investment arm of EAGC as a business unit to ensure its sustainability and we hope to continue working with you in scaling up GSoko in the region. The USAID have also been a long standing partner to EAGC, having been instrumental in the creation and establishment of EAGC in 2006 and continuing to be a partner supporting various programs at EAGC through the various mechanism and projects including the current USAID East Africa Trade and Investment Hub. We value and always appreciate your support. The United States Development of Agriculture (USDA) Global Communities/AIMS project, Technical Centre for Agricultural and Rural Cooperation (CTA), German Development Cooperation (GIZ), Food and Agriculture Organization of the UN (FAO) and others for working with EAGC is various activities aligned to the EAGC mandate and strategic plan, we appreciate you. We also thank Alliance for a Green Revolution in Africa (AGRA) for your support to EAGC in Kenya since 2011 to date, and we hope to work with you in other countries as well in the future. Finally, ladies and gentlemen, we appreciate the Governments in the region that we continue to work very closely with, especially in the areas of policy advocacy, the regional economic communities East African Communities (EAC), Common Market for Eastern and Southern Africa (COMESA), Intergorvenmental Authority on Development (IGAD), Southern African Confederation of Agricultural Unions (SACAU) and the African Union (AU), we commit to continue partnering with you in finding solutions for the sector to achieve our shared and common goals of a prosperous Africa. We are EAGC! Dr. Otim Bernard, Chairman, Board of Directors, Eastern Africa Grain Council 20th April 2017 Annual Report & Financial Statements,

14 BOARD OF DIRECTORS Dr. Otim Bernard, Chairman Dr. Otim is the CEO, Farmers Centre (U) Ltd.. Gabriel Kitenga, Vice Chairman Gabriel is the Group Head of Tax and Tariff at East African Breweries. Isaac Chege, Treasurer He is the Managing Director, Nafics Limited. He is the a founder Director of Green Systems Africa Limited and Uchumi Grain Millers Limited. Julius Wambura, Country Director- Tanzania Mr. Julius Wambura is the Chief Operating Officer FRABHO Enterprises Ltd, Dar es Salaam Tanzania and is the founding Chairman of the Rice Council of Tanzania (RCT) Amb. Philip Idro, Director -Uganda Amb. Idro is the founder and Managing Director of Upland Rice Millers, Uganda. He was Uganda s envoy to China ( ) Eugene Rwibasira, Country Director - Rwanda He is the Executive Secretary, Rwanda Development Organisation- RDO and the chairman Rwanda Grains and Cereals Corporation. ( RGCC) 12 Annual Report & Financial Statements, 2016

15 BOARD OF DIRECTORS Mr. Stephanus Farnie Kruger, Director Farnie is the Chairman of Cereal Growers Association (CGA) and a large scale farmer in Uasin Gishu. Abel Paul Lyimo, Director- Tanzania Abel is the founder and CEO, the Rural Urban Development Initiatives (RUDI, Tanzania. Mr. Munir Thabit, Director - Kenya Munir is the CEO of Grain Industries Limited, Mombasa, Kenya. Evarist Silayo, Director -Tanzania Evarist is the founder and CEO of Union Service Stores Ltd, Tanzania and he sits on the Tanzanian Cereal Board of Directors. Gerald Masila, Executive Director/CEO Board Secretary Gerald Masila is the Executive Director/CEO of EAGC. Annual Report & Financial Statements,

16 EXECUTIVE DIRECTORS REPORT In order to promote regional trade in food grains in the Eastern Africa region, EAGC is involved in policy dialogue and advocacy, provision of market information, structuring trade in grains and capacity building of stakeholders to be practitioners in structured trade. 14 Annual Report & Financial Statements, 2016

17 EXECUTIVE DIRECTORS REPORT Introduction Chairman of the Board of Directors of the Eastern Africa Grain Council, the Board members, the valued members of EAGC present, invited guests and my colleagues at the Secretariat, I am greatly pleased to present to you the 2016 Annual Report for the Eastern Africa Grain Council. The year 2016, was a very busy year for us at the Secretariat as we continued to make every effort to serve you, the members and also other stakeholders of EAGC, in pursuit of our vision as the leading voice of the grain sector in Africa and our mission to facilitate efficient, structure, inclusive and profitable grain trade in the Eastern Africa region. I also wish, from the outset, to echo my Chairman in appreciating our various development partners who have supported and worked with EAGC over the years. Swedish International Development Coperation Agency (Sida), Department of International Development - UK (DFID), United States Agency for International Development (USAID), Alliance for a Green Revolution in Africa (AGRA), United States Department of Agriculture (USDA) Global Communities (GC)- AIMS, Technical Centre for Agricultural and Rural Cooperation (CTA), Food and Agriculture Organization (FAO), German Development Cooperation (GIZ), Financial Sector Deepening (FSD), East Africa Trade and Investment Hub ( EATIH) and others. We value and appreciate your partnership and commit to continue working closely with you, in seeking to achieve our shared objectives of developing and improving the grain sector in an inclusive manner and delivering value to stakeholder, particularly the most vulnerable small holder farmer and small and medium enterprises that are in most need of assistance. 1. Grain Sector Highlights Review The Grain Sector in the Eastern Africa region still faces challenges, many of which keep recurring over the years and in other aspects, the sector performance is declining. In production and productivity, some EAGC countries have recorded improvements particularly Ethiopia and Rwanda. The el-nino and la nina effects that started in 2015 prolonged to 2016 and as a result, 2016 experienced less than normal production in some regions, others suffering from prolonged drought and crop failure while others areas experienced floods. Consequently, 2016 experienced significant shortages in food grains in most countries in the region, save for Ethiopia that reportedly recorded some bumper harvests in some regions, though others suffered drought. Some governments in the regions responded to the drought situation be imposing interventions to restrict cross border trade, notably Kenya, Tanzania, Malawi and Zambia. However, the intended objective of the maize export bans, ostensibly aimed at limiting the flow of food grains out of the country so as to keep the prices low was not achieved as maize prices continued to increase to record high levels, even with export bans, thus further hurting the consumers. The grain sector is however upbeat on a number of fronts. First, there are many new market opportunities for beans and pulses, for local processing and export to India. Crop rotation and mixed cropping of maize with pulses is bringing new hope for our farmers as now they have a market for maize and also for pulses. However, low productivity, access to certified seeds, farm inputs, credit, extension, pests, diseases and post-harvest handing and management and low budgetary investments continue to be a challenge, not only to the grain sector but the wider agricultural sector. Annual Report & Financial Statements,

18 EXECUTIVE DIRECTORS REPORT 2. The Role of EAGC The Eastern Africa Grain Council, a membership based organization whose mandate covers 10 countries in the Eastern Africa region is playing a critical role in addressing the above challenges in the grain sector and by extension the wider agriculture sector. EAGC s interventions are in essence focused on promoting trade as a way of creating the pull factor and guide resource allocation at the farm level to realize the market opportunities. EAGC s theory of change contends that if a farmer can find a market for their produce, which is consistent, reliable and is giving a price that not only covers their costs but leaves them with a surplus, the income so earned will be re-invested to increase production and will assist them to meet their basic needs and improve their livelihoods. In order to promote regional trade in food grains in the Eastern Africa region, EAGC is involved in policy dialogue and advocacy, provision of market information, structuring trade in grains and capacity building of stakeholders to be practitioners in structured trade, with the members of EAGC, who include grain farmers, traders, processors and service providers, being the core actors in structured grain trade Policies and legal and regulatory measures governing the agriculture sector, and in particular the grain sector continue to limit growth and in some cases undermine increased investments as they create risks related to policy uncertainty in addition to the risks in weather and over reliance in rain fed agriculture. At EAGC, trade and access to markets is the core of our interventions. We believe that if the region is to be food secure, then trade in food grains has to be at the centre of the strategies that the region and member states will employ in their pursuit of being a food secure region or country. We also believe that the food security solution should be addressed as a regional issue and priority rather than a nationalistic issue. Simply put, if the region is food secure, the country will also be food secure, through cross border trade. Our assessments and the regional food balance sheet has always confirmed that the Eastern Africa region always has sufficient food grains to feed its people, even in the most adverse of situations. The challenge is and has always been to move the food from the surplus farming areas to the deficit areas. The most efficient way to achieve this is through trade. 3. EAGC 2016 performance Highlights. EAGC has been implementing its second Strategic Business Plan, EAGC SBP II, The SBP II put forward five strategic objectives as follows; 1. Increased Investments in market infrastructure and supporting institutions 2. Establish and Strengthen national and regional market information systems to increase access to grain market information for trade and policy decisions. 3. Facilitate capacity building at various levels and awareness creation on various aspects related to grain marketing in the region. 4. Improved policy and regulatory environment to support structured trade 5. Strengthening EAGC institutional capacity to deliver on her regional grain trade integration mandate. 16 Annual Report & Financial Statements, 2016

19 EXECUTIVE DIRECTORS REPORT Over 60,000 Smallholder farmers in structured grain trade B2B Over 212 trade contracts signed for a volume of 294,493MT 156 smallholder village aggregation centres (VAC) established 119 village aggregation centres supported with post-harvest handling equipment Objective 1: Increased Investments in market infrastructure and supporting institutions. In this objective, the basis of structuring grain trade is by creating infrastructure and supporting institutions that enable the aggregation/bulking of produce from the numerous and fragmented small holder producers to generate economies of scale. This is done through formation of farmer groups with village aggregation centres, certification of warehouses, mobilizing grains into the aggregation centres and the certified warehouses, ensuring quality and standards of the warehoused produce and facilitating the trade of the commodities to buyer in a manner that minimizes transaction costs. In 2016, working with partners and the members, EAGC; Identified and profiled 66 new farmer groups who were trained, increasing the farmer based organization (FBO) to smallholder village aggregation centres (VAC) were established, 132 of which were linked to certified warehouses. 38 VACs were automated and electronically linked to certified warehouses to pilot the GSoko online grain trading system. 12 Aggregation centres received contracts to supply maize and beans to WFP P4P. 66 farmer groups were linked directly to various buyers including millers and exporters. Over 60,000 Smallholder farmers are participating in structured grain trade through their farmer organizations. Kenya 21,098, Uganda 27, 710, Tanzania- 6,156, Rwanda Smallholder farmer traded 27,713MT of grains valued at US$ 7,698,055. Identified and inspected 85 warehouses, out which 55 were certified with a capacity of 146,095 MT. The certified warehouses handled 62,981 MT of grains valued at USD20 Million. Supported a total of 119 village aggregation centres with postharvest handling equipment including weigh scales, shellers, tarpaulins and moisture meters aimed at improving efficiency in handling of grains, improving the quality of the produce and reducing post-harvest losses. Facilitated 10 business to business (B2B) linkage forums resulting in 212 trade contracts for a volume of 294,493MT valued at an estimate USD 4 billion. The actualization of the contracts is ongoing. Completed the development of the GSoko Online Grain Trading Platform and commenced trading in October. By close of the year, 21 G-Notes were nominated for sale in GSoko, 5 of which were traded totaling to 1140MT valued at USD 421,550. (Green grams 95,850, Rice 289,000, Maize -36,700). Annual Report & Financial Statements,

20 EXECUTIVE DIRECTORS REPORT GSoko Grain Trade Directory, listing various sellers and buyers of grains was developed and published. GSoko Trade Desk linkages resulted to 985MT of grains transacted valued at US$ 462,475 ( Soyabean $310,000, Maize- $375, Green grams $142,500, Rice - $9600. Increased access to credit and finance by facilitating 5 trainings in Warehouse Receipt Finance and Structured Commodity Trade Financing to 8 financial institution, benefitting 60 officials. Resulting from the trainings, 5 institutions developed new lending products and signed tripartite agreements with warehouses for lending to farmer/depositors 3 financial institutions issued credit against grain stocks as collateral valued at US$ 428, farmer cooperatives received inputs on credit valued at US$ 150,000. Hosted annual Agribusiness expos in Tanzania, Kenya, Uganda and Malawi. Objective 2: Establish and Strengthen national and regional market information systems to increase access to grain market information for trade and policy decisions. The purpose of providing market information is so that value chain actors and policy makers can utilize the information for trade and policy decisions. In 2016, working with members and with support from partners EAGC; Continued to offer market information and intelligence through the EAGC Regional Agricultural Trade Intelligence Network RATIN through the website and through the RATIN SMS service. RATIN covered 41 markets recording indicative average price data and 14 border points recording cross border trade volume, source and destination, including informal cross border trade in 8 countries with a network of 35 border and market monitors. RATIN products included supermarket prices for grain products, daily cross border trade flows data, daily grain trade news updates, weekly market analysis reports, monthly cross border trade reports, interactive maps for warehouses and historical datasets. RATIN website received 69,298 visits with 39,682 being new visitors to the site and recorded 1,335,574hits. The RATIN SMS subscriber base grew to 19,551. RATIN utilization /access for registered users was as per pie chart below. Disseminated market information reports to over 1000 registered subscribers Received over 170 media coverage and mentions in different print and electronic media in the region Produced and distributed the quarterly bulleting on Informal Cross Border trade. Continued to coordinate private sector data contribution to the Regional Food Balance Sheet managed by the EAC RFBS portal. Analyzed the RFBS data and produced periodic briefs on the EAC Food Security Outlook for food grains. 18 Annual Report & Financial Statements, 2016

21 EXECUTIVE DIRECTORS REPORT RATIN website recorded 1,335,574 hits EAGI Trainings generated US$ 116, 175 in internal revenues. 16,917 farmers trained 30 policy dialogues Kenya-6, Tanzania-5 Rwanda-2 Uganda-2 Objective 3. Facilitate capacity building at various levels and awareness creation on various aspects related to grain marketing in the region. The aim of this objective is to ensure the Eastern Africa Grain Institute (EAGI), the specialized capacity building and training arm of EAGC is fully operational and that stakeholders, including farmer groups, traders, millers, service providers and policy makers improve their skills and knowledge on the various aspects of grains postharvest handling, care, management, marketing, financing and regulation. In 2016, with support from various partners and working with various stakeholders, EAGC through the EAGI Facilitated 20 trainings for different stakeholders among them financial institutions, graders, warehouse operators, farmers, government officials and extension officers and small and medium enterprises in the grain sector. 514 individuals benefited from the specialized courses offered by EAGI. 28 SME warehouse operators, 4 of which are in South Sudan were supported with Business Development Services (BDS). The Trainings generated US$ 116, 175 in internal revenues. Developed curriculums and training manuals on; commercial grain handling; introduction to post harvest management; structured trading systems and basic agribusiness and finance. A training needs analysis TNA, was conducted among 474 SMEs who expressed their capacity needs. A further curriculum focusing on development of a mentorships program for SMEs is under preparation. 16,917 farmers received training in grain aggregation, post-harvest handling and grain standards. This training enabled the farmers to improve the quality of their grain thus gaining access to markets including WFP, School Feeding programs among others. Objective 4: Improved policy and regulatory environment to support structured trade Through this objective, EAGC aims to influence the National governments and Regional Economic Communities RECS, to develop and implement policies and regulatory frameworks that facilitate structured regional grain trade, and to create and enabling policy environment that is predictable, stable, rules based and transparent. In order to achieve this goal, EAGC strives to gather and provide data and evidence for policy advocacy, using the EAGC RATIN market information system, conducting policy research and publishing policy recommendations, and hosting policy dialogue forums, at national regional, continental and international Annual Report & Financial Statements,

22 EXECUTIVE DIRECTORS REPORT forums. In 2016, with support from various partners and working in collaboration and partnership with other stakeholder including the members, EAGC; Hosted and participated in over 30 policy dialogues and various levels ( Kenya -6, Tanzania 5, Rwanda -2, Uganda 2,) six of which were regional forums held in various countries. Continued with the review of the harmonized EAC grains standards gazette in 2013 by hosting consultative meetings at the national level and regional levels to address the gaps in the standards and also develop an EAC proficiency testing (PT) scheme for the labs and graders. Signed MoU with various National Bureaus of Standards in the EAC and have been collaborating in the revision and implementation of the standards. Initiated and hosted various national level consultative meetings on the review of the Rules of Origin for grain commodities and products within the Tripartite Free Trade Area TFTA. Engaged with the Executive and Legislative arms (National Assembly and Senate) of the Government of Kenya on the Warehouse Receipt Systems (WRS) Bill, coordinated private sector participation and made submissions for amendments which were accepted. Engaged with the Government of Tanzania on the export bans, yielding temporary reprieve. Collated and submitted recommendations to the Government of Rwanda on the Rwanda WRS bill and the Government of Kenya on the AFFA and Crops Act. Collated and submitted recommendations to the EAC partners states through the EABC and also KEPSA on the budgets Conducted policy analysis, impact assessments and research studies on; TFTA, export bans, grain sector reviews, rice trade in EAC and disseminated the study findings through various forum and published three editions of the ATPAF-ESA bulletins. 20 Annual Report & Financial Statements, 2016

23 EXECUTIVE DIRECTORS REPORT Objective 5: Strengthening EAGC institutional capacity to deliver on her regional grain trade integration mandate. This objective is about the mandate of EAGC as well as the institutional strength with regards to relevance, efficiency, effectiveness and sustainability. EAGC, being a regional membership based organization, the mandate and relevance emanates from the presence in the EAGC countries and the number of members including the distribution across the region as well as the inclusiveness in the value chain, including farmers, trader and processors, small, micro, medium and large operations, in an equitable manner ensuring representation. In 2016, 97 new members joined EAGC in 2017, 20 of whom were small holder farmers cooperatives / association representing over 30,000 members. The new members comprised of 33 Kenya, 24 Tanzania, 15 Rwanda, Malawi 10, Burundi 9, and Uganda 6. The EAGC members register closed at 296 registered member organizations with 110 members being fully paid up with annual subscriptions paid up to date. The sustainability of EAGC is closely linked to its efficiency and effectiveness, ability to offer services to members and stakeholders and in so doing generate sufficient revenues to meet the operational costs of the Secretariat. EAGC has put in place Governance and Management structures, with policies, procedures and internal controls and a guiding strategic plan. EAGC has a regional head office and country offices in 7 out of the 10 EAGC countries with the latest being the EAGC office in Lilongwe Malawi, established in The Secretariat has a staff complement of qualified and experienced professional, all competitively recruited. In 2016, EAGC recruited 12 new staff to fill vacant position in different departments and countries. 3 staff resigned to pursue other interest while 3 were discontinued due to non-performance. New office premises were leased in Kigali, Rwanda to host the Country team while a new prefabricated office block was erected at the regional office to host the GSoko system team and provide additional office space. EAGC managed to raise revenue of US$ 4,073,366 during 2016, comprising of a combination of grants received from various development partners, and internally generated funds from EAGC membership subscriptions and fees generated from various services offered by EAGC to members and stakeholders including training by EAGI, Agribusiness Expos, Trade facilitation among others. This achievement was against an initial target in the Strategic Plan of US $ 1,923, Challenges Several challenges were encountered in the course of the year, which in one way or another impeded on the attainment of some of the expected results. These included, to mention but a few; Slow pace in policy advocacy and continued restrictions to regional trade in grains, Climate change challenges affecting production and available grain for sale, Leadership and governance challenges among small holder farmer groups slowing the pace of adoption of aggregation and structured trade innovations, Low public investment in agriculture, including the grains sector at the macro level, Annual Report & Financial Statements,

24 EXECUTIVE DIRECTORS REPORT Limited access to credit to the agriculture and the grain sector being viewed as risky by the lenders, Substantial amounts of investments required to develop the warehouses to meet the certification criteria and, Relatively low levels of awareness and knowledge about structured regional grain trading systems limiting the number of users and practitioners. We have developed mitigation and remedial actions to address the above challenges to be implemented. 5. Way Forward Going forward to 2017, we will be concluding the implementation of the EAGC SBP II and develop the EAGC SBP III, The new Business plan will guide the priorities, activities and operations of EAGC for the next five years. As usual, the process of developing the new plan which will be launched during the 7th Africa Grain Trade Summit, in October 2017, will involve deep consultations primarily with the members but also with other stakeholders. It will build on the success that EAGC has achieved in the last 10 years of its existence and will seek to convert the many assets of EAGC into solid services that will be offered at a fee to members and stakeholders to cover the related costs and to retain a modest surplus which will be re-invested back into service delivery. The membership of EAGC remains the core constituency of EAGC and we will seek to continue growing it to further strengthen the relevance of EAGC. Efficiency and effectivenes will continue being the measures of performance, with a clear focus on results not reasons, in an innovative, streetwise, and transparent manner and with a strong commercial orientation such that value and membership benefit will be the transaction currency of EAGC. We will further engage with the partners and stakeholders including the governments to forge stronger, mutually beneficial, professional, transparent and accountable partnerships that will seek innovative and transformative solutions to the grain sector challenges so as to benefit all the value chain players. We will continue our constructive engagement with the national governments and regional policy makers to continuously create an enabling environment by addressing existing barriers to trade. In this venture, we will strongly rely on the support and participation of you the members to build a formidable force to advocate on issues affecting your enterprises as we pursue our visions at the Leading Voice of the Grain Industry in Africa 22 Annual Report & Financial Statements, 2016

25 SECRETARIAT PROFILES Senior Management Team Gerald Masila Executive Director /CEO Janet Kalulu Ngombalu, Regional Programs Coordinator Drollah N. Ssebagala Regional Finance Manager Samwel Rutto, Regional Manager Structured Trading Systems (STS) Jacinta Mwende Mwau, Regional Manager Market Information System (MIS) & Communications Penina Gichuru, Monitoring & Evaluation Manager Violet Nyando, Manager Eastern Africa Grain Institute (EAGI) Kimwaga Mhando Trade Policy Analyst Jane Mokua Programs Administration Manager Annual Report & Financial Statements,

26 SECRETARIAT PROFILES Regional Programs Structured Trading Systems Janet Kalulu Ngombalu, Regional Programs Coordinator Samwel Rutto, Regional Manager Structured Trading Systems (STS) Emmanuella Atito, Program Officer Trade Facilitation Martha Njogu Program Assistant, Trade Facilitation Market Information Systems & Communications Fred Simon Otieno, Program Officer Structured Trading Systems Peter Wanjohi, Technical Advisor Structured Trading Systems Eastern Africa Grain Institute Jacinta Mwende Mwau, Regional Manager Market Information System (MIS) & Communications John Jaoko, Program Officer Market Information Systems Violet Nyando, Manager, Eastern Africa Grain Institute (EAGI) Christopher Wang ombe Program Officer, EAGI Monitoring and Evaluation Titus Kisangau, Program Officer Communications Jared Nelvin Obiero, Program Officer Regional Food Balance Sheet 24 Annual Report & Financial Statements, 2016 Penina Gichuru, Manager, Monitoring & Evaluation Vincent Kiplagat, Program Officer Monitoring & Evaluation

27 SECRETARIAT PROFILES Finance Team Drollah N. Ssebagala Regional Finance Manager Paul Ochuna Finance Officer Winnie Momanyi Accounts Assistant Administration Team Jane Mokua Programs Administration Manager Jacqueline Wanjiru Gitahi Events Assistant Sylvia Amatta Receptionist Susan Seenoi Administration Asssistant Boniface Munenge Driver Annual Report & Financial Statements,

28 SECRETARIAT PROFILES Country Program Team - Kenya Davine Minayo, Country Program Manager Howard Mugera Program Officer James Kuria Field Officer, North Rift Sammy Kipsang Field Officer, Upper Eastern Country Program Team - Malawi Kipyegon Kipkemei Field Officer, Central Rift Timothy Muli Field Officer, Lower Eastern Babettie Abigail Juwayeyi Country Program Manager Taziona Mchira Program Officer Country Program Team - Rwanda Epiphanie Karekezi Program Officer Aime Garlas Kwizera Program Officer Louis Manirabona Accounts & Administration Assistant 26 Annual Report & Financial Statements, 2016

29 SECRETARIAT PROFILES Country Program Team - Tanzania Ikunda Terry, Country Program Manager Junior S. Ndesanjo Program Officer, EAGI Juma Bruno Ngomuo Program Officer, STS Sharifa Chikaha Program Officer, MIS Country Program - Burundi Country Program - South Sudan Brendan Rugangira Accounts & Administration Assistant Yves Batungwanayo Country Representative Taban Emmanuel.J.Abina Country Representative Country Program Team - Uganda Benjamin Aijuka Program Officer Pausta Clessy Nuwagaba Program Officer Justine Namubiru Program Administrative Assistant Annual Report & Financial Statements,

30 REGIONAL AGRICULTURAL TRADE INTELLIGENCE NETWORK (RATIN) The Regional Agricultural Trade Intelligence Network (RATIN) is a web based Regional Market Information system developed and hosted by the Eastern Africa Grain Council (EAGC) RATIN was developed to help reduce regional food insecurity by strengthening the ability of markets to provide access to affordable food to poor households, while simultaneously improving food availability through the provision of adequate incentives to producers. RATIN continues to provide timely, accurate and relevant market information in 41 markets and 14 border points in the Eastern Africa region. The data is relayed into a central processing unit for analysis and dissemination. The data is published on the website by 11:00am showing market rates and cross-border trade volumes. Dissemination is through the RATIN website ( net), online and a pull short message service. RATIN delivers market information to end users via three types of channels: peoplebased, electronic, , and print media. Users can choose the channel they prefer, depending on convenience and cost THE RATIN PRODUCTS Grain trade news updates Real-time warehouse stocks Daily Market Prices Supermarket Prices Interactive maps Parity prices Phone based Daily news updates, Weekly market analysis reports RATIN PRODUCTS Monthly cross-border reports Historical datasets Short Message Services (SMS) Automatic exchange rates Website display Advertorial space Regional food-balance sheets Social media (Facebook and Twitter) Daily cross-border trade flows 28 Annual Report & Financial Statements, 2016

31 EAGC G-SOKO ONLINE TRADING SYSTEM The EAGC G-Soko Online Trading System is an electronic platform comprising of a network of automated grain bulking/aggregation centres and certified warehouses, linked to a virtual trading platform, as well as participating banks for settlement and clearing and trading houses (grain buyers/millers) all regulated and administered by EAGC, under the law of contract and operating under defined set of protocols, procedures, rules and regulations. It was designed to give confidence that, irrespective of where the warehouse is located, the uniform quality of the stored grains can be guaranteed. The development of the G-Soko leveraged on existing market structures under EAGC such as Warehouse Receipt System, Business to Business Linkages, Aggregation Systems among others. During its conceptualization, the GSoko system was envisaged to be an innovative technology that would provide grain market opportunities; track grain commodities; create market linkages and facilitate an increased regional trade. GSoko System as Service to EAGC Members EAGC is a regional membership organization created to serve the interests of the grain value chain stakeholders in the Eastern Africa region. The membership of the Council includes input suppliers, producers, traders and processors. The overarching goal of the Council is to facilitate an efficient, profitable and structured grain trading in the region. The development and implementation of the GSoko trading system was therefore aimed at offering the following services: a. Create linkage between small holder farmers to grain buyers across the region through automated/networked and structured market mechanism; b. Through a network of certified warehouse and aggregation centers guarantee sufficient grain quantities of good quality; c. Help buyers participating in the system to access trade finance while farmers access credit (cash and farm inputs); d. Improve market access, enhance productivity and ultimately help farmers to increase production and income; and e. Guarantee uniform quality of grains irrespective of where the warehouse is located PERCENT $3.5 MILLION Warehouses certified by EAGC (Tanzania-18; Kenya- 18; Uganda- 17) increase in income of EAGC maize farmers in Kenya in 2016 USD in loans issued via the Warehouse Receipt System to date aggregation centres equipped with post harvest-handling 139 equipment to date 124,000 MT grain traded through STS farmers trained in post-harvest 54,000 handling $1.6 MILLION value of 95 grain trade contracts signed in 3 B2B forums in 2015 Annual Report & Financial Statements,

32 EAGC S G-SOKO TRADING SYSTEM IN ACTION AGRO- DEALERS accept G-note as collateral for agro-inputs VILLAGE AGGRE- GATION CENTRE aggregates grain from farmers CERTIFIED EAGC WARE- HOUSE samples, tests, grades and stores grain GRAIN RECEIVED NOTE (GRN) issued by warehouse to validate grain received G-NOTE issued by EAGC via G-Soko system G-SOKO SYSTEM enables G-note holders to trade SETTLE- MENT AND CLEARING ensures both parties meet contractual obligations FINANCIAL INSTITUTION accepts G-note as collateral for loan 30 Annual Report & Financial Statements, 2016

33 POLICY AND ADVOCACY Policy And Advocacy To Support Efficient, Structured and Profitable Grain Trade EAGC looks at its 10 mandate countries not as individual countries operating unilaterally, but as a single region capable of feeding itself. This is premised on the fact that differences in agro-ecology in the mandate countries create opportunities for trade in grains throughout the year. Therefore, food security and market access for grain producers can only be achieved through free trade to ensure efficient movement of commodities from surplus to deficit areas. Free trade can only be achieved through a supportive and business-friendly policy environment which is a cornerstone for structured grain trade. As such, EAGC takes a hands-on approach in pursuit of such an enabling policy environment. This includes providing thought leadership in policy formulation as well as providing a Voice for the grain sector by leading policy advocacy to ensure the needs of all grain sector stakeholders are represented in policy reforms. Over the past decade, our policy advocacy efforts have not only guaranteed a seat at the table for the grain sector on any policy discussion, but have also led to policy reforms that have translated to increased returns on investment at all levels of the grain value chain. The Agricultural Trade Policy Advisory Forum for Eastern and Southern Africa The Agricultural Trade Policy Advisory Forum for Eastern and Southern Africa (ATPAF-ESA) is a network of public and non-state institutions for informing policy processes in agricultural trade. The Forum was established by EAGC 1ST AGTS NAIROBI, nd AGTS Nairobi, rd AGTS Dar es Salaam, th AGTS Kampala, th AGTS Mombasa, th AGTS Kigali, th AGTS Dar es salaam, 2016 Establishment of EAGC Paved the way for introduction of Warehouse Receipts System in Kenya as a solution to grain marketing and financing problems Initiated the process towards harmonisation of East African Staple Foods Standards within the EAC The Grain Scored Card Called for removal of maize export bans by Tanzania, which were subsequently removed in early 2012 Renewed focus on warehouse receipting and commodity exchanges as solutions to grain trading challenges Launch of the Structured Grain Trading Handbook Creation of Communities of Practice and Action Groups to address challenges along grain value chains and lead publicprivate policy dialogue Setting New Horizons: Rethinking Grain Trade for Food Security and prosperity in Africa Annual Report & Financial Statements,

34 in partnership with the Food and Agriculture Organisation of the United Nations (FAO) to provide the required coordination and collaboration mechanism in order to effectively advise on policy developments in the region. ATPAF-ESA is led by EAGC, and thus serves as EAGC s policy and advocacy department. The Forum has four (4) main pillars as follows: i. Improved policy monitoring ii. Enhanced evidence-gathering iii. Policy capacity building of stakeholders iv. Enhanced public-private policy dialogue the benefits of the TFTA. The two studies were conducted to inform the ongoing TFTA negotiations also saw EAGC strengthen its influence in the continental agriculture and trade policy agenda after being selected to join the African Union Technical Networks to support the implementation of the Malabo Comprehensive Africa Agriculture Development Programme (CAADP). The Technical Networks will help ensure policy matters in the grain sector are considered at the highest continental levels, further catalysing policy reforms in our sector. Policy and Advocacy Achievement in was a year of great strides and achievements in our efforts to improve the policy environment for grain trade in Eastern and Southern Africa. At regional level, EAGC supported the review of the harmonised EAC staple foods standards. The harmonised standards were initially developed with EAGC support and gazetted by the EAC in December 2013; the review process in 2016 was geared to improve the standards and further reduce technical barriers to grain trade through a public-private consultative process in all EAC Partner States. EAGC also supported the development of rules of origin for the COMESA-EAC- SADC Rules of Origin which are expected to guide trade within the Tripartite. EAGC s specific role was in facilitating national stakeholder consultations in EAC Partner States, which formed the basis on negotiations at EAC and TFTA levels. EAGC with support from FAO undertook two studies on the TFTA and its implications on grain trade and food security in Eastern Africa. While the first study took a broader perspective on regional trade policy and how the TFTA would affect intra-regional trade in staple foods, the second study analysed how the agribusiness policy environment in at country level may present opportunities and challenges for its agricultural sector once the TFTA comes into force, and propose policy options to enhance SAVE THE DATE We are pleased to announce the 7 th African Grain Trade Summit which will be held from 5th-7th October 2017 in Dar es Salaam, Tanzania. The Africa Grain Trade Summit (AGTS) is a biennial, continentally recognized grain industry conference that attracts stakeholders along the grain value chain from around the Africa continent and beyond, to discuss and develop a regionally focused strategy for grain trade market development. 7 th African Grain Trade Summit (Dar es Salaam, Tanzania) 5th - 7th October 2017 THEME: SETTING NEW HORIZONS: RETHINKING GRAIN TRADE FOR FOOD SECURITY AND PROSPERITY IN AFRICA More information on Call for Papers, Sponsorship Opportunities, Registration & Logistical arrangements to follow! For More Details, Contact Us: grains@eagc.org agts2017@eagc.org, Tel: , :Eastern Africa Grain Council :@EAGrainCouncil :grains@eagc.org 32 Annual Report & Financial Statements, 2016

35 EASTERN AFRICA GRAIN INSTITUTE (EAGI) The Eastern Africa Grain Institute (EAGI) endeavoured to pursue its mandate of building the knowledge base and skills pool of grain value chain stakeholders within the Eastern Africa region both commercially and in support of the Country Programs. To this end various relevant training courses were offered within the year which attracted a total of 469 participants spread across the region including in South Sudan. These courses were in Warehouse Management and Operations, Structured Commodity Trade Finance, Web 2.0 and Social Media, Agribusiness Finance and Graders Training. The actual breakdown of courses and course objectives and number of participants is as follows: 59 Graders attended this training which was aimed at building the capacity of quality control officer in warehouse on grain quality management and care. The session included best sampling techniques, grain testing and grain grading based on approved EAC standards. Agribusiness Financing 91 participants, mainly from the financial sector attended this training whose focus was to build their capacity on various financing opportunities available in the international trade value chain. Session covered included overview of grain sector in the region, international trade, import and export procedures, warehouse receipt financing, agriculture trade value chain, opportunities and risk management. Graders Training This training was aimed at building the capacity of participants on utilization of second generation technological tools for development. This training was conducted in partnership with CTA and covered the following: Search magic, online conversations, blogging, online mapping, social networking, communities of practice, remote collaboration. A total of 65 stakeholders participated in this training. Structured Commodity Trade Finance This training was aimed at building the capacity of credit officers and senior managers on opportunities and risk management in agribusiness financing. Sessions covered include agriculture trade value chains, agriculture insurance, loan analysis, loan portfolio, risk management. A total of 121 participants benefitted from this training. Web 2.0 and Social Media (ICTforAg) Warehouse Management and Operations A total of 133 warehouse operators across the region were trained on best practice warehouse operations and management. This training aims at building capacity on best storage practices to help improve grain handling and management skills. Topics included; grain handling procedures, quality control, record keeping, inventory management, warehouse receipt system, grain intake procedure. Participants also visited warehouses to gain practical experience on grain grading and store management. Annual Report & Financial Statements,

36 PICTORIALS OF 2016 ACTIVITIES 34 Annual Report & Financial Statements, 2016

37 PICTORIALS OF 2016 ACTIVITIES Annual Report & Financial Statements,

38 2016 FINANCIAL ACCOUNTS COMBINED FINANCIAL STATEMENTS OF EASTERN AFRICA GRAIN COUNCIL (KENYA), EASTERN AFRICA GRAIN COUNCIL (UGANDA), EASTERN AFRICA GRAIN COUNCIL (TANZANIA) AND EASTERN AFRICA GRAIN COUNCIL (RWANDA) FOR THE YEAR ENDED 31 DECEMBER 2016 Table of Contents 37 Graphical representation of income and operating expenses 39 Information 41 Report of the Directors of the combined entities 42 Statement of combined entities Directors responsibilities 43 Report of The Independent Auditor To The Board Of Directors of the Combined Entities 47 Combined statement of Financial Position 48 Combined statement of Cash Flows 49 Notes 61 Combined schedule of other expenditure Expenditure The following pages do not form an integral part of these financial statements: 63 Appendices Financial statements: 46 Combined statement of income and Expenditure and Accumulated Fund 36 Annual Report & Financial Statements, 2016

39 GRAPHICAL REPRESENTATION OF INCOME AND OPERATING EXPENSES INCOME AND EXPENDITURE FROM INCOME Percentage US$ US$ US$ US$ US$ US$ US$ US$ Grant Income 88% 3,762, ,980, , , , , , ,125, Membership Income 1% 56, , , , , , , , Consultancy/Partnership 0% , , , , , , Other Income (Incl Training fees, GSOKO Income and Business Expos) 11% 226, , , , , , , , TOTAL INCOME 100% 4,045, ,514, ,273, ,661, , ,139, , ,292, OPERATING EXPENDITURE Cordination and Management 2% 152, , , , , , , , Staff costs 21% 1,052, , , , , , , , Program costs 68% 2,249, ,747, , , , , , , Office operations 9% 424, , , , , , , , TOTAL OPERATING COSTS 100% 3,878, ,061, ,452, ,399, ,426, ,049, ,199, ,274, OPERATING BALANCE 166, , (179,471.00) 261, (521,107.00) 89, (262,079.00) 17, Grant Income growth trends between Grant Income between ,500, ,000, ,500, ,000, ,500, ,000, ,500, ,000, , US$ US$ US$ US$ US$ US$ US$ US$ Grant Income US$ US$ EAGC PARTNERS Percentage GRANT INCOME EAITH 2.09% 78,762 AGRA 3.22% 121,315 SIDA 24.85% 934,800 AIMS % 378,534 BAF 0.330% 12,300 FTESA 53.54% 2,014,309 CTA 2.93% 110,318 SITA 0.19 % 7,193 GIZ 0.42 % 15,782 NUTEC Uganda 0.27% 10,209 FAO 2.09% 78,806 Grand Total Grant Income 100% 3,762,328 Grant Income per partner INCOME US$ US$ US$ US$ US$ US$ US$ US$ Membership Income 56, , , , , , , , ,500,000 2,000,000 Grant Income per partner for ,500,000 1,000, ,000 - EAITH AGRA SIDA AIMS BAF FTESA CTA SITA GIZ NUTEC Uganda FAO Annual Report & Financial Statements,

40 Membership Income Growth trends during the period , Growth in Membership Income 40, , Growth in Membership Income OTHER INCOME US$ US$ US$ US$ US$ US$ US$ US$ Consultancy/Partnership , , , , , , Other Income (Incl Training fees, GSOKO Income and Business Expos) 229, , , , , , , , TOTAL INCOME 229, , , , , , , , Expenditure Distribution % 2% 21% 68% Cordination and Management Staff costs Program costs Office operations Analysis of Program Costs for 2016 Percentage US$ Market Institution 73% 1,645, Trade Policy 3% 76, Market Intelligence 6% 131, Research & Consultancy 5% 106, Capacity Building 10% 226, Bussiness Fairs 3% 62, TOTAL Program Costs 100% 2,249, Bread down of level of effort for Program costs 3% 3% 5% 10% 6% 73% Market Institution Trade Policy Market Intelligence Research & Consultancy Capacity Building Bussiness Fairs 38 Annual Report & Financial Statements, 2016

41 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 INFORMATION BOARD OF DIRECTORS OF COMBINED ENTITIES Dr. Otim Bernard Chairperson Mr. Gabriel Kitenga Vice chairperson Mr. Isaac Chege Treasurer Mr. Farnie Kruger Director Mr. Eugene Rwibasira Director Mr. Abel Lyimo Director Ambassador Idro Philip Director Mr. Julius Wambura Director Mr. Munir Thabit Director Mr. Evarist Silayo Director Mr. Gerald Masila Executive Director/ Board Secretary COMPANY SECRETARIES Eastern Africa Grain Council (Kenya, Tanzania, Uganda and Rwanda) Swift Secretaries and Registrars 3rd Floor, Geminia Insurance Plaza, Mara Road P.O. Box 4583, NAIROBI REGISTERED OFFICES OF COMBINED ENTITIES Eastern Africa Grain Council (Kenya) Mbaazi Avenue, off Kingara Road, Valley Arcade P.O. Box 218, NAIROBI Eastern Africa Grain Council (Uganda) Plot 958 Galukande close muyenga Opposite Kironde road P.O Box KAMPALA Eastern Africa Grain Council (Tanzania) CSDI Office Premises, Sinza Mori, Plot 16 P.O Box DAR ES SALAAM TANZANIA Eastern Africa Grain Council (Rwanda) KK 36 STR Kimironko RGCC Office, Gasabo District P.O. Box 4497 KIGALI, RWANDA INDEPENDENT AUDITOR PKF Kenya Certified Public Accountants P.O. Box 14077, NAIROBI Annual Report & Financial Statements,

42 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 INFORMATION ( CONTINUED) GLOSSARY OF ABBREVIATIONS EAGC - Eastern Africa Grain Council SIDA - Swedish International Development Agency AGRA - Alliance for Green Revolution in Africa VAT - Value Added Tax DAI - Development Alternative Initiative BAF - Business Advocacy Fund CTA - Technical Centre for Agricultural and Rural Cooperation FTESA - Food Trade Eastern and Southern Africa USAID/EATIH - East Africa Trade and Investment Hub GC/AIMS - Global Communities/ Agribusiness Investment for Market Stimulation ITC/SITA - International Trade Centre/ Supporting Indian Trade and Investment for Africa GIZ - German Development Cooperation FAO - Food and Agriculture Organisation PRINCIPAL BANKERS Eastern Africa Grain Council (Kenya) Commercial Bank of Africa Limited NAIROBI Equity Bank Limited NAIROBI Eastern Africa Grain Council (Uganda) Standard Chartered Bank Limited KAMPALA Eastern Africa Grain Council (Tanzania) Bank of Africa Limited DAR ES SALAAM Eastern Africa Grain Council (Rwanda) Kenya Commercial Bank KIGALI, RWANDA 40 Annual Report & Financial Statements, 2016

43 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 REPORT OF THE DIRECTORS OF THE COMBINED ENTITIES The Directors submit their report and the combined financial statements for the year ended 31 December INCORPORATION Each of the combined entities is registered in its respective country as company limited by guarantee and not having a share capital. Each of the combined entities is a non profit membership based organisation, non-political and non denominational body. PRINCIPAL ACTIVITIES The principal activities of each of the combined entities are to promote a well functioning regional grain supply chain focusing on trade issues for all sectors of value chain and building a platform for reducing constraints in regional grain trade. They integrate key stakeholders in the region including the public sector and allied parastatals. RESULTS The operating results for the year are set out on page 46. DIRECTORS The Directors who held office during the year and to the date of this report are shown on page 39. INDEPENDENT AUDITOR PKF has audited the financial statements of the combined entities. BY ORDER OF THE BOARD BOARD SECRETARY 23 March 2017 Annual Report & Financial Statements,

44 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 STATEMENT OF COMBINED ENTITIES DIRECTORS RESPONSIBILITIES The Directors of the combined entities are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of each of the combined entities as at the end of the financial year and of the surplus or deficit for that year. The directors are also required to ensure that the combined entities keeps proper accounting records that are sufficient to show and explain the transactions of the combined entities; and that disclose, with reasonable accuracy, the financial position of the combined entities and that enables them to prepare financial statements of the combined entities that comply with the International Financial Reporting Standard for Small and Medium Sized Entities The directors are also responsible for safeguarding the assets of the combined entities and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors accept responsibility for the preparation and fair presentation of the financial statements in accordance with the International Financial Reporting Standard for Small and Mediumsize Entities. They also accept responsibility for: I. Designing, implementing and maintaining such internal control as they determine is necessary to II. enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; Selecting and applying appropriate accounting policies; and judgements that are reasonable in the circumstances. The directors are of the opinion that the combined financial statements give a true and fair view of the financial position of the combined entities as at 31 December 2016 and of the combined entities financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards for Small and Medium-sized Enterprises. In preparing these financial statements the directors have assessed the combined entities ability to continue as a going concern. Nothing has come to the attention of the directors to indicate that the combined entities will not remain a going concern for at least the next twelve months from the date of this statement. The directors acknowledge that the independent audit of the combined financial statements does not relieve them of their responsibilities. So far as each of the directors is aware, there is no relevant audit information which the auditor is unaware of, and each of the directors has taken all the steps that ought to have been taken in order to become aware of any relevant audit information and to establish that the auditor is aware of that information. Approved by the Board of directors on and signed on its behalf by: DIRECTOR DIRECTOR 42 Annual Report & Financial Statements, 2016

45 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 REPORT OF THE INDEPENDENT AUDITOR TO THE BOARD OF DIRECTORS OF THE COMBINED ENTITIES Opinion We have audited the financial statements of Eastern Africa Grain Council Limited set out on pages 46 to 60, which comprise the combined statement of financial position as at 31 December 2016, the combined statement of income and expenditure and accumulated fund, combined statement of cash flows for the year then ended and the notes to the financial statements including a summary of significant accounting policies. In our opinion, the accompanying combined financial statements give a true and fair view of the financial position of the combined entities as at 31 December 2016, and of their financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Emphasis of Matter - Basis of Accounting We draw attention to Note 2 to the combined financial statements, which describe the basis of accounting. The combined financial statements are prepared to provide information to Eastern Africa Grain Council. As a result, the combined financial statements may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Combined Financial Statements section of our report. We are independent of the combined entities in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Kenya, Uganda, Tanzania and Rwanda and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The directors are responsible for the other information. The other information comprises the report of the directors, of the combined entities, the combined schedule of other expenditure but does not include the financial statements and our auditor s report thereon, which we obtained prior to the date of this auditor s report, and the annual report, which is expected to be made available to us after that date. Our opinion on the combined financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the combined financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the combined financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Annual Report & Financial Statements,

46 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 REPORT OF THE INDEPENDENT AUDITOR TO THE BOARD OF DIRECTORS OF THE COMBINED ENTITIES (CONTINUED) When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of Directors for the Combined Financial Statements The directors are responsible for the preparation of the combined financial statements that give a true and fair view in accordance with IFRS for SMEs, and for such internal control as the directors determine is necessary to enable the preparation of combined financial statements that are free from material misstatement, whether due to fraud or error. In preparing the combined financial statements, the directors are responsible for assessing the combined entities ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the combined entities or to cease operations, or have no realistic alternative but to do so. Auditor s Responsibilities for the Audit of the Combined Financial Statements Our objectives are to obtain reasonable assurance about whether the combined financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these combined financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintainprofessional skepticism throughout the audit. We also: Those charged with governance are responsible for overseeing the combined entities financial reporting process. 44 Annual Report & Financial Statements, 2016

47 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 REPORT OF THE INDEPENDENT AUDITOR TO THE BOARD OF DIRECTORS OF THE COMBINED ENTITIES (CONTINUED) Auditor s responsibilities for the audit of the combined financial statements (continued) - Identify and assess the risks of material misstatement of the combined financial statements,whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the combined financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the combined entities to cease to continue as a going concern. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the combined entities internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of director s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the combined entities ability to continue as a - Evaluate the overall presentation, structure and content of the combined financial statements, including the disclosures, and whether the combined financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. NAIROBI 193/2017 Annual Report & Financial Statements,

48 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 COMBINED STATEMENT OF INCOME AND EXPENDITURE AND ACCUMULATED FUND Notes USD USD Grant income 4(a) 3,762,836 3,980,936 Other income 4(b) 284, ,101 Other operating income 5 25,595 10,483 4,073,366 4,202,520 Expenditure Programme expenses (2,402,102) (2,838,114) Administrative expenses (1,297,038) (1,035,284) Other operating expenses (179,151) (188,387) Operating surplus 6 195, ,735 Finance (costs)/income 8 (28,167) 312,469 Surplus before tax 166, ,204 Tax 9 (108) 4,811 Surplus for the year 166, ,015 Accumulated fund at start of year 705, ,471 Accumulated fund at end of year 872, ,486 The notes on pages 49 to 60 form an integral part of these combined financial statements. Report of the independent auditor - pages 43 to Annual Report & Financial Statements, 2016

49 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 COMBINED STATEMENT OF FINANCIAL POSITION As at 31 December CAPITAL EMPLOYED Notes USD USD Accumulated fund 872, ,486 Non-current liabilities Capital grants 10 67,501 75, , ,081 REPRESENTED BY Non-current assets Property and equipment - cash acquired assets , ,675 Property and equipment - donated assets 11 63,536 75,595 Intangible assets 12 2,143 3,221 Deferred tax 13 4,703 4, , ,302 Current assets Receivables , ,404 Grants receivable ,715 98,589 Cash and cash equivalents ,697 1,021,427 1,231,299 1,257,420 Current liabilities Deferred income , ,248 Payables , ,532 Borrowings 18 40,552 6, , ,641 Net current assets 704, , , ,081 The combined financial statements on pages 46 to 60 were approved and authorised for issue by the Board of Directors of the combined entities on and 23/03/2017 were signed on its behalf by: DIRECTOR DIRECTOR The notes on pages 49 to 60 form an integral part of these combined financial statements. Report of the independent auditor - pages 43 and 45. Annual Report & Financial Statements,

50 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 COMBINED STATEMENT OF CASH FLOWS Notes USD USD Surplus before tax 166, ,204 Adjustments for: Depreciation on property and equipment - cash acquired assets 11(a) 45,865 28,505 - donated assets 11(b) 11,810 9,834 Amortisation of intangible assets 12 1,071 1,009 Interest income (25,397) (9,658) (Gain) on disposal of property and equipment (198) - Foreign exchange loss/(gain) 28,167 (312,469) Changes in working capital - receivables (64,483) 31,180 - grants receivable (81,126) (98,589) - payables (174,316) 309,829 - deferred income (11,703) 80,524 Cash (used in)/from operations (103,401) 493,369 Investing activities Interest income 25,397 9,658 Purchase of property and equipment - cash acquired assets 11(a) (100,760) (97,978) - donated assets 11(b) (3,716) (101,774) Purchase of intangible assets 12 - (1,525) Proceeds from disposal of property and equipment Net cash (used in) investing activities (78,273) (191,619) (Decrease)/increase in cash and cash equivalents (181,674) 301,750 At start of year 1,014, ,169 (Decrease)/increase (181,674) 301,750 Translation difference 4,420 57,178 Effect of exchange rate changes (28,167) 312,469 At end of year ,145 1,014,566 The notes on pages 49 to 60 form an integral part of these combined financial statements. Report of the independent auditor - pages 43 and Annual Report & Financial Statements, 2016

51 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES 1. General information Each of the combined entities is registered in its respective country as company limited by g u a r a n t e e and not having a share capital. Each entity is a non profit membership based organisation, non-political and non denominational body. The registered offices of each entity is as shown on page Basis of preparation The combined financial statements have been prepared under the historical cost convention, exceptas indicated otherwise below and are in accordance with International Financial Reporting Standards for Small and Mediumsized Entities. These financial statements have been prepared on a going concern basis. These financial statements comprise combined financial statements of the following individual entities that are currently under common control: Entity Eastern Africa Grain Council Limited (Kenya) Eastern Africa Grain Council Limited (Uganda) Eastern Africa Grain Council Limited (Tanzania) Eastern Africa Grain Council Limited (Rwanda) Country of incorporation of entity Kenya Uganda Tanzania Rwanda The principal activities of each of the above entities is as shown in the report of directors of the combined entities shown in page 41. The combination of the financial statements of the entities above is carried out under the definitions of International Financial Reporting Standards for Small and Medium-sized Entities Section 9 on Consolidated and Separate Financial Statements. Combined financial statements have been presented to faithfully represent the financial performance and position of the group as if a parent and subsidiary relationship was in existence at the reporting date. The process of preparing these combined financial statements is based on the requirements of International Financial Reporting Standards for Small and Mediumsized Entities Section 9 of preparing consolidated financial statements of a group. Under this process intragroup balances, income and expenses on transactions between combined entities are eliminated. Profits and losses resulting from inter-group transactions that are recognised in assets are also eliminated. Going concern The financial performance of the combined entities is set out in the director s report and in the statement of income and expenditure and accumulated fund. The financial position of the combined entities is set out in the statement of financial position. Based on the financial performance and position of the combined entities and their risk management policies, the directors are of the opinion that the combined entities are well placed to continue in business for the foreseeable future and as a result the combined financial statements are prepared on a going concern basis. Annual Report & Financial Statements,

52 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES ( CONTINUED) 3. Summary of significant accounting policies a. Key sources of estimation uncertainty The combined entities make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below. Useful lives of property and equipment and intangible assets - Management reviews the useful lives and residual values of the items of property and equipment on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values. Impairment of receivables - the company reviews their portfolio of receivables on an annual basis. In determining whether receivables are impaired, the management makes judgement as to whether there is any evidence indicating that there is a measurable decrease in the estimated future cash flows expected. b. Recognition of income Revenue comprises the fair value of the consideration received or receivable for the performance of services, in the ordinary course of business and is stated net of rebates and discounts. The combined entities recognise revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entities and when the specific criteria have been met for each of the combined entities activities as described below. The amount of revenue is not considered to be reliably measured until all contingencies relating to the sale have been resolved. The combined entities bases their estimates on historical results, taking into consideration the type of customer, type of transaction and specifics of each arrangement, as described below. i. Grants for restricted purposes and for specified funded projects are recognised when received and spent on qualifying activities. Any unutilised grants are recognised as deferred income and any excess expenditure over income is recorded as grants receivable at year end where there is commitment of additional funds from grant providers. ii. Sales of services are recognised upon customer acceptance. iii. Interest income is accrued by reference to time under the effective interest method. iv. Other income is recognised upon performance of the services rendered. c. Capital grants This represents funds received for purchase of property and equipment. The initial amount is credited to a deferred income account known as capital grants. The grant balance is amortisedannually at an amount equal to that of depreciating the assets purchased with the grants. 50 Annual Report & Financial Statements, 2016

53 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (CONTINUED) d. Property and equipment All property and equipment is initially recorded at cost and thereafter stated at historical cost less depreciation. Historical cost comprises expenditure initially incurred to bring the asset to its location and condition ready for its intended use. Subsequent costs are included in the asset s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to each of the combined entities and the cost can be reliably measured. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the combined income and expenditure and accumulated fund during the financial period in which they are incurred. Depreciation is calculated on the reducing balance basis to write down the cost of each asset, to its residual value over its estimated useful life using the following annual rates: Rate % Motor vehicles 25 Computer equipment 30 Furniture and fittings 12.5 The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposal of property and equipment are determined by comparing the proceeds with the carrying amount and are taken into account in determining operating surplus. Donated assets are assets given to each of the respective combined entity by its donors. On recognition, these assets are capitalised under property and equipment and the associated income is recognised under long term payables as deferred income. The depreciation portion is then taken to income expenditure on an annual basis. e. Intangible assets - computer software Intangible assets are purchased computer software that is stated at cost less accumulated depreciation and any accumulated impairment losses. Computer software is amortised over a period of 3 years using the straight line method. If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations. f. Translation of foreign currencies Transactions in foreign currencies during the year are converted into the respective functional currency of each of the combined entities at the rates ruling at the transaction dates. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. The resulting differences from conversion and translation are dealt with in combined income and expenditure and accumulated fund in the year in which they arise. Annual Report & Financial Statements,

54 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES ( CONTINUED) For combination of the financial statements, the functional currencies are translated to United Stated Dollar using the average rates for the combined income and expenditure and spot rate for the combined statement of financial position. g. Receivables Receivables are initially recognised at the transaction price. They are subsequently measured at amortised cost using the effective interest method. At the end of each reporting period, the carrying amounts of receivables are reviewed to determine whether there is any objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised immediately in the combined statement of income and expenditure and accumulated fund. h) Grant receivable Grant receivable is the excess expenditure over income as at year end and is only recognised where there is commitment of additional funds from grant providers. i) Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents comprise cash in hand and deposits held with banks, net of bank overdrafts. In the combined statement of financial position, bank overdrafts are included in borrowings in current liabilities. j) Deferred income Grant income is deferred where it has been received to fund specific future expenditure. k) Payables Trade payables are recognised initially at the transaction price. They are obligations on the basis of normal credit terms and do not bear interest. l) Borrowings Borrowings are initially recognised at transaction price, net of transaction costs incurred and are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised as interest expense in the combined statement of income and expenditure and accumulated fund under finance costs. Borrowings are classified as current liabilities unless the combined entities have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.all borrowing costs are recognised in the combined statement of income and expenditure and accumulated fund in the year in which they are incurred. m) Retirement benefit obligations Each of the combined entities and its employees contribute to the Statutory Social Security F u n d s. E a c h of the combined entities contributions to the defined contribution schemes are charged to the combined income and expenditure and accumulated fund in the year to which they relate. n) Taxation Whilst the combined entities do not have tax exemption certificates at present, apart from Kenya, they deal in activities which are not for profit and therefore the management is of the view that the entities would not 52 Annual Report & Financial Statements, 2016

55 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (CONTINUED) be subject to tax. Therefore no provision for current or deferred tax is recognised in these combined financial statements for Kenya, Uganda and Tanzania. The management has initiated the process to obtain formal tax exemption certificates. o) Leases The combined entities as lessees Leases of assets under which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to statement of income and expenditure and accumulated fund on a straight line basis over the period of the lease. p) Share capital The combined entities do not have a share capital. q) Comparatives Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current year. Annual Report & Financial Statements,

56 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (CONTINUED) Grant income USD USD a) Grant income 3,762,836 3,980,936 b) Other income EAGI income 120,906 68,614 Business fair income 70,321 49,590 Membership income 56,146 34,854 AGTS income - 29,049 Other income 29,597 10,165 Capital grants 3,751 9,840 G-soko income 4,214 8, , , Other operating income Bank interest 25,397 9,658 Gain on disposal of property and equipment Other income ,595 10, Operating surplus The following items have been charged in arriving at the operating surplus: Depreciation on property and equipment - cash acquired assets (Note 11 (a)) 45,865 28,505 - donated assets (Note 11 (b)) 11,810 9,834 Amortisation of intangible assets (Note 12) 1,071 1,009 Audit fees - current year 9,914 7,713 - underprovision in prior years Operating lease rentals 67,422 51,857 Repairs and maintenance 31,269 81,548 Staff costs (Note 7) 1,052, , Staff costs Salaries and wages 895, ,486 Other staff costs 157, ,059 1,052, , Finance costs/(income) Foreign exchange loss/(gain) 28,167 (312,469) 9. Tax Rwanda Deferred tax (charge)/credit (Note 13) (108) 4, Annual Report & Financial Statements, 2016

57 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (CONTINUED) The tax on the combined entities surplus before tax differs from the theoretical amount that would arise using the basic rate as follows: USD USD Surplus/(deficit) before tax 166, ,204 Tax calculated at a tax rate of 30% (2015: 30%) 50, ,961 Tax effect of: - expenses not deductible for tax purposes income and expenses allowable/deductible for taxes (50,361) (131,331) Tax (charge)/credit (108) 4,811 Kenya No provision for current or deferred tax is recognised in these financial statements as the company is exempt from tax. Uganda The organization is in the process of applying for an income tax exemption certificate from the Uganda Revenue Authority. The directors are of the opinion that this will be granted to the organization. Tanzania The organisation is registered under the Tanzanian companies Act 2002 and is deemed to be exempt from tax on grant income. However the company has not yet received a tax exemption certificate from the Government of Tanzania. Annual Report & Financial Statements,

58 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (CONTINUED) 10. Deferred income USD USD Non-current Capital grants 67,501 75,595 Current Deferred income 303, , , ,843 Capital grants The movement in capital grants was as follows: At start of year 75,595 16,790 Grants received during the year 3, ,774 (Credit) to income and expenditure (11,810) (9,834) Translation difference - (33,135) At end of year 67,501 75,595 Deferred income (Continued) Deferred income on capital grants relate to non current assets donated to the combined entities by their donors. On recognition, these assets are capitalised under property and equipment and the associated grant is recognised under long term payables as deferred income. The depreciation portion is then taken to income expenditure on an annual basis and the grant amortised over the life of the asset. 56 Annual Report & Financial Statements, 2016

59 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (TAX CONTINUED) 11. Property and equipment a) Cash acquired assets Motor Computer Furniture vehicles equipment and fittings Total USD USD USD USD Cost At start of year 82,440 47,490 61, ,177 Disposals - (965) - (965) Additions 72,968 22,059 5, ,760 Translation difference (219) (157) (313) (689) At end of year 155,189 68,427 66, ,282 Depreciation At start of year 34,481 28,353 17,668 80,502 Disposals - (357) - (357) Translation difference (91) (80) (70) (241) Charge for the year 26,912 13,274 5,679 45,865 At end of year 61,302 41,190 23, ,769 Net book value As at 31 December ,888 27,236 43, ,513 As at 31 December ,959 19,137 43, ,675 b) Donated assets Cost At start of year 21,553 19,661 71, ,298 Additions - 1,701 2,015 3,716 Translation difference (1,336) (194) (4,121) (5,651) At end of year 20,217 21,168 68, ,363 Depreciation At start of year 17,074 10,890 8,739 36,703 Charge for the year 1,050 3,219 7,541 11,810 Translation difference (1,058) (153) (475) (1,686) At end of year 17,066 13,956 15,805 46,827 Net book value As at 31 December ,151 7,212 53,173 63,536 As at 31 December ,479 8,771 62,345 75,595 Annual Report & Financial Statements,

60 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (TAX CONTINUED) 12. Intangible assets USD USD Cost At start of year 5,532 4,525 Additions - 1,525 Translation difference (14) (518) At end of year 5,518 5,532 Amortisation At start of year 2,311 1,508 Charge for the year 1,071 1,009 Translation difference (7) (206) At end of year 3,375 2,311 Net book value 2,143 3, Deferred tax Deferred tax is calculated, in full, on all temporary differences under the liability method using a principal tax rate of 30% (2015: 30%). The movement on the deferred tax account is as follows: USD USD At start of year (4,811) - Charge/(credit) to income and expenditure (Note 9) 108 (4,811) At end of year (4,703) (4,811) 58 Annual Report & Financial Statements, 2016

61 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (TAX CONTINUED) 13. Deferred tax (Continued) Deferred tax liabilities/(assets) in the combined statement of financial position and deferred tax credit/(charge) to combined income and expenditure are attributable to the following items: Charge/(credit) to income At end At start and of year of year expenditure USD USD USD Deferred tax liabilities Property and equipment - accelerated tax depreciation Deferred tax assets Provisions - (317) (317) Tax losses carried forward (4,951) 5 (4,946) (4,951) (312) (5,263) Net deferred tax assets (4,811) 108 (4,703) 14. Receivables USD USD Prepayments 89,762 50,064 Other receivables 91,080 64,284 Deposits 14,792 22,472 Advances 6, , ,404 Annual Report & Financial Statements,

62 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 NOTES (TAX CONTINUED) 15. Grants receivable USD USD Donor - BAF - 7,923 - CTA 60,288 33,378 - SITA - 7,324 - GIZ South Sudan 43, GIZ Kenya 15,669 49,963 - AIMS 12, Foodtrade 47, ,715 98, Cash and cash equivalents Cash and cash equivalents 849,697 1,021,427 For the purposes of the statement of cash flows, the year end cash and cash equivalents comprise the following: Cash and bank balances 849,697 1,021,427 Bank overdraft (Note 18) (40,552) (6,861) 809,145 1,014, Payables Accruals and other payables 182, , Borrowings Bank overdrafts (unsecured) (Note 16) 40,552 6, Presentation currency These combined financial statements are presented in United Stated Dollars (USD). 60 Annual Report & Financial Statements, 2016

63 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 COMBINED SCHEDULE OF OTHER EXPENDITURE Direct Cost USD USD Marketing institution 1,598,503 2,003,453 Trade policy 76, ,753 Market intelligence 131, ,018 Coordination and management 152,709 90,636 Research and consultancy 106, ,774 Capacity building 226,556 75,944 Establishment of market institutions 47,414 - Agriculture business expo 6,506 - Business fairs 55,650 46,536 Total direct costs 2,402,102 2,838, Administrative expenses Employment: Salaries and wages 895, ,486 Staff medical and welfare expenses 64,339 52,794 General staff and training expenses - 19,250 Long term service dues - gratuity 92,787 69,015 Total employment costs 1,052, ,545 Other administrative expenses: Computer expenses 37,971 55,722 Legal and professional fees 34,321 27,211 Board travel 44,112 17,381 Vehicle running and maintenance 8,948 15,096 Printing and stationery 19,376 14,049 Secretariat travel 34,683 13,707 Postages and telephones 24,424 13,332 Bank charges and commissions 13,780 9,002 Office operations - Ethiopia - 8,860 Audit fees - current year 9,914 7,713 - underprovision in prior years Office operations - Burundi 2,696 6,370 Office Operations- Malawi Office Operations- Sudan 1,273 - Annual Report & Financial Statements,

64 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 COMBINED SCHEDULE OF OTHER EXPENDITURE (CONTINUED) USD USD Fines and penalties 3,063 - Internet expenses 4,279 4,551 Business development and fundraising 5,223 3,568 Total other administrative expenses 244, ,739 Total administrative expenses 1,297,038 1,035, Other operating expenses Establishment: Repairs and maintenance 31,269 81,548 Rent and rates 67,422 51,857 Depreciation on property and equipment 57,883 38,339 Electricity and water 12,501 10,150 Insurance 9,005 5,484 Amortisation of intangible assets 1,071 1, , , Finance Income Foreign exchange (gain) 28,167 (312,469) 62 Annual Report & Financial Statements, 2016

65 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX General secretariat operating statement USD USD Membership income 56,147 36,228 Un-restricted grants 135, ,035 Interest earned 23,823 8,621 Grain trade summit - 29,464 Gsoko Income 1,190 - Other income 166, ,082 Business fairs income 70,320 52,883 Total income 452, ,313 Operating expenditure Capital expenses - 32,835 Business fair 24,742 30,969 Staff costs 87,543 40,995 Grain trade summit - 12,235 Agricultural market institutions 5,955 11,800 Office expenses 84,386 32,458 Coordination and management 10,207 4,998 Market intelligence 32 3,163 Trade policy 22,495 1,670 Capacity building 10, Research and consultancy - unrestricted funds 105,455 - Audit fees - - Foreign exchange (gain) (28,759) (75,659) Translation Difference (392) Deffered Tax charge 108 Total operating expenditure 380,254 95,591 Operating balance for the year 72, ,722 At start of year 604, ,164 Fund balance at end of year 677, ,886 Represented by: Cash at bank 67, ,636 Fixed deposits 337, ,397 Accounts receivable 206, ,819 Accounts payable (59,051) (77,673) Tax recoverable - Property and equipment 117, ,675 Intangible assets 2,147 3,222 Deffered tax 4,703 4,810 Balance at end of year 677, ,886 Annual Report & Financial Statements,

66 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX USD USD 6. USAID/EATH operating statement Income Grants received 78, ,750 Operating expenditure Agricultural market institutions 78, ,750 Total operating expenditure 78, ,750 Fund balance at end of year Annual Report & Financial Statements, 2016

67 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX 3 7. AGRA operating statement KE Income USD USD USD Deferred income brought forward 79,692-79,692 Grants received 163, , ,518 Deferred income carried forward (121,895) (79,692) (121,895) Income USD USD USD Funds available for expenditure 121,315 98, ,315 Interest income Total income 121,399 98, ,399 Operating expenditure Agricultural market institutions 44,107 52,551 44,107 Office operations 16,394 21,920 16,394 Staff salaries 44,983 10,308 44,983 Capital expenditure - 7,904 - Coordination and management 3,778 3,683 3,778 Total expenditure 109,262 96, ,262 Foreign exchange (18,251) (14,557) (18,251) Total operating expenditure 127,513 81, ,513 Operating balance for the year (6,114) 16,373 (6,114) At start of year 16,373-16,373 Fund balance at end of year 10,259 16,373 10,259 Represented by: Cash at bank 138, , ,763 Accounts receivable 4,398 9,043 4,398 Accounts payable (11,007) (19,522) (11,007) Deferred income (121,895) (76,728) (121,895) Balance at end of year 10,259 16,373 10,259 Annual Report & Financial Statements,

68 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX 4 8. SIDA operating statement INCOME Deferred income brought forward 85,625 84,167 Grants received 1,249,805 1,235,035 Deferred income carried forward (70,759) (86,105) Transfer to related parties (337,965) (188,584) Funds available for expenditure 926,706 1,044,513 Interest earned Total income 927,299 1,044,776 OPERATING EXPENDITURE Staff salaries 311, ,154 Coordination and management 161, ,853 Agricultural market institutions 93, ,293 Office operations 162, ,917 Marketing intelligence 61,045 97,230 Grain trade summit - 81,156 Capacity building 32,836 57,641 Trade policy 15,918 19,503 Business trade fairs 21,064 23,661 Audit fees 3,261 - Exchange gain 8,495 39,208 Translation Differences (6,398) - Total expenditure 864,549 1,103,616 Total operating expenditure 864,549 1,103,616 Operating balance for the year 62,750 (58,840) At start of year (31,013) 31,103 Fund balance at end of year 31,737 (27,737) Represented by: Cash at bank 62, ,907 Accounts receivable 65,341 32,674 Accounts payable (69,026) (61,056) Deferred income (74,515) (100,262) Non Current Assets 47,187 - Balance at end of year 31,736 (27,737) USD USD 66 Annual Report & Financial Statements, 2016

69 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX 5 9. AIMS /Global communities operating statement Income USD USD Deferred income brought forward 10,026 - Grants received 399,446 73,527 Transfer to related parties (12,576) - Deferred income carried forward (18,099) (10,026) Funds available for expenditure 378,797 63,501 Interest earned 17 - Total income 378,814 63,501 Expenditure Office operations 8,782 - Coordination and management 8,854 - Staff salaries 199,052 57,872 Agricultural market institutions 69,551 3,393 Capacity building 82,931 2,459 Business fairs 7,885 2,215 Audit fees 1,182 - Marketing intelligence - 38 Exchange (gain) 3,347 (8,548) Total operating expenditure 381,583 57,429 Operating balance for the year (2,769) 6,072 At start of year 6,072 - Fund balance at end of year 3,303 6,072 Represented by: Cash at bank (1,002) 12,014 Accounts receivable 24,742 4,084 Accounts payable (2,494) - Deferred income (17,943) (10,026) Balance at end of year 3,303 6,072 Annual Report & Financial Statements,

70 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX Business Advocacy Fund (BAF) operating statement Grants received 11,080 7,827 Deferred income carried forward (1,781) - Funds available for expenditure 9,299 7,827 Expenditure Trade policy 1,443 15,865 Foreign exchange loss/(gain) 92 (9,607) Total operating expenditure 1,535 6,258 Operating balance for the year 7,764 1,569 At start of year (7,764) - Fund balance at end of year - 1,569 Represented by: Cash at bank 10,611 1,559 Grants receivable - 7,622 Accounts payable (8,830) (7,612) Deferred income (1,781) - Balance at end of year - 1, Annual Report & Financial Statements, 2016

71 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX FOODTRADE ESA operating statement Income USD USD Deferred income brought forward 11, ,612 Grant received 2,163,491 2,580,272 Transfer to related parties (237,393) (474,926) Deferred income carried forward (35,910) (111,566) Interest earned Funds available for expenditure 2,002,580 2,132,107 Expenditure Coordination and management 30,105 - Agricultural market institutions 1,359,693 1,814,492 Staff salaries 405, ,691 Office operations 86, ,577 Business fairs 28,369 - Marketing intelligence 51,505 65,328 Grain trade summit - 33,458 Capacity Building 6,247 - Trade policy 19,914 3,520 Audit fees 2,749 - Foreign exchange loss/(gain) (23,442) (291,234) Translation Differences (2,631) - Total operating expenditure 1,965,221 2,046,832 Operating balance for the year 37,359 85,275 Fund Balance at start of year 81,272 - Fund balance at end of year 118,631 85,275 Represented by: Cash at bank 194, ,486 Accounts receivable 54,073 18,761 Accounts payable (32,308) (209,500) Deferred income (97,505) (113,472) Balance at end of year 118,630 85,275 Annual Report & Financial Statements,

72 Combined Financial Statements of Eastern Africa Grain Council (Kenya) Eastern Africa Grain Council (Uganda) Eastern Africa Grain Council (Tanzania) and Eastern Africa Grain Council (Rwanda) For the year ended 31 December 2016 APPENDIX USD USD 12. CTA Deferred income brought forward - 3,360 Grant received 110,843 56,774 Funds available for expenditure 110,843 60,134 Expenditure Agricultural market institutions 2,457 - Marketing intelligence 16,270 66,751 Capacity building 74,516 18,651 Grain trade summit - 8,314 Trade policy 17,599 - Foreign exchange (gain) (1,525) (731) Total operating expenditure 112,367 92,985 Operating balance for the year (1,524) (32,851) Fund Balance at the start of year 32,851 - Fund balance at end of year 31,327 (32,851) Represented by: Grants receivable 60,408 (32,851) Accounts payable (29,081) - Balance at end of year 31,327 (32,851) 70 Annual Report & Financial Statements, 2016

73 EAGC MEMBERSHIP TANZANIA 1 Selous Farming Active 2 Shankar Holding Active 3 Export Trading Company TZ Active 4 ACE-Audit Control Expertise SA and Associates Associate 5 Corporate Business Advisory Co. Ltd Active 6 Said Salim Bakhresa & Company Ltd Active 7 Mohamed Entreprises Ltd Active 8 New Boogaloo Active 9 Sasumua Holding Ltd Active 10 Union Service Stores Ltd Active 11 Bodi ya Soko la Kibaigwa Ltd Active 12 Frabho Enterprises Ltd Active 13 Quality Food Products Active 14 Monaban Company Ltd Active 15 Tanzania Federation of Cooperatives Ltd Affiliate 16 Minjingu Mines & Fertiliser Ltd Associate 17 Coast Millers Active 18 Centre for Sustainable Development Initiatives Active 19 Pembe Flour Mills Ltd (TZ) Active 20 A to Z Textile Mills Ltd Active 21 Kilombero Plantations Ltd Active 22 Building Rural Incomes Through Enterprise (BRITEN) Associate 23 POP Vriend (T) Ltd Active 24 Technoserve Tanzania Affiliate 25 International Tanfeeds Ltd Active 26 Litenga Holding Active 27 So They Can Active 28 Ruaha Millers Active 29 Dodoma Transport Active Annual Report & Financial Statements,

74 EAGC MEMBERSHIP 30 Mapanda Enterprises Active 31 SGS Associate 32 AgroKibiti Active 33 Creative Enterprises Ltd Active 34 Mount Meru Millers Ltd Active 35 Musoma Food Company Limited Active 36 G2L Company Limited Active 37 Tanzania Graduate Farmers Association (TGFA) Active 38 BCA Grain and Feeds Active 39 G Market Limited Active 40 Out assurance Brokers Associate 41 Daima Associates Limited Associate 42 Out assurance Brokers Associate 43 Raphael Group Limited Active 44 Kibaigwa Flour Supplies Limited Active 45 Grain Market Ltd Active 46 Mbomole Investment Company Active 47 Young Masitus Enterprises Ltd Active 48 Private Agricultural Sector Support Trust Associate 49 Silverland Co. Ltd Active 50 Bajwa Farmers and Traders Active 51 Unyiha Associates Active 52 Mkulima Agricultural Enterprise Active 53 National Microfinance Bank Associate 54 Grains International PVT Ltd Active 55 Tenende Agriculture Active 56 Ati-Farm Limited Active 57 Tandale Market Grain Sellas Association and Investment Active 58 Dorfra Trading Company Ltd Active 59 Dikwe General Supplies Ltd Active 72 Annual Report & Financial Statements, 2016

75 EAGC MEMBERSHIP 60 Msamala Enterprises Active 61 Kinyemi Holdings Active 62 Basic Element Company Ltd Active 63 Usangu Valley Active 64 Green Neptune Agro-Farming Company Ltd Active 65 Rural Urban Develoment Initiatives (RUDI) Affiliate 66 Rudi Commercial Services Company Limited Active 67 Rural Urban Develoment Initiatives (RUDI) Affiliate 68 Rudi Commercial Services Company Limited Active UGANDA 1 abi Trust Associate 2 AFGRI Uganda Ltd Active 3 Agriserv Ltd Active 4 AGROPMA Active 5 AgroWays Ltd. Active 6 All About Food Active 7 Amatheon Agri Uganda Active 8 Brazafric Enterprises Ltd Associate 9 Chemiphar (U) Ltd Associate 10 Export Trading Group Active 11 Farmers Centre (U) Ltd. Active 12 Grain Bulk Handlers (U) Ltd Active 13 Joseph Initiative Ltd Active 14 Kapchorwa Commercial Farmers Association Active 15 Katine Joint Farmers Co-op Ltd Active 16 Kinoni Produce Farm Ltd Active 17 Nyakatonzi Growers Coop Union Active 18 Nyarrusa Ltd Active 19 Osho Chemical Industries Active 20 REWA Grains Active 21 Savannah Commodities Co (U) Ltd Active Annual Report & Financial Statements,

76 EAGC MEMBERSHIP 22 Soroti Grain Millers Ltd Active 23 Uganda Development Trust Affiliate 24 Upland Rice Millers Active 25 Victoria Seeds Ltd. Active 26 Wekembe Uganda Ltd Active 27 Nyamahasa United Area Coop Enterprises Active 28 Muhorro Area Cooperative Enterprise Active 29 Elshaday General Trading Ltd. Active 30 Pura Organic Agrotech Ltd. Active 31 Masindi Seed and Grain Growers Ltd Active 32 Nakisenhe Adult Literacy Group Affiliate 33 Musabody Machinery (U) Ltd Active 34 Tilda Uganda Ltd Active 35 Indo African Investments Ltd Active 36 Totco (U) Limited Active 37 Sanyu Agro Harvest Limited Active 38 Binyizika Poultry International Ltd Associate 39 HMH Rainbow Ltd Active 40 Acila Enterprises Limited Active RWANDA 1 East Africa Exchange Active 2 Rwanda Grains and Cereal Corporation Active 3 KOTUKA Cooperative Active 4 ARDI Active 5 COAMIV Cooperative Active 6 COOPAG Cooperative Active 7 INDAKUKI Cooperative Active 8 Bureax d'appoui aux Initiative Rurales (BAIR) Active 9 Sosoma Industries Ltd Active 74 Annual Report & Financial Statements, 2016

77 EAGC MEMBERSHIP 10 Agribusiness Focused Partnership Organization Active 11 Sarura Commodities Ltd Active 12 Yak Fair Trade Ltd Active 13 Kaidu Cooperative Active 14 Win Win Deals Ltd Active 15 Organisation Pour Le Travail Et Le Progress Active 16 Gatsibo Rice Company Active 17 Bugesera Agribusiness Company Active 18 Movement Supply & Service Active 19 Coprori Ntende Active 20 Agreed International Active 21 Rural Development Partners (RDP Ltd) Active 22 Dufatanyemuhinzi Agribusiness Services Ltd Active 23 Abadaco Gora Active 24 Cooperative Coacmu Active 25 Freedom Kawunga Ltd Active 26 Abibumbye Rwimiyaga Active 27 Agriculture For Investment Cooperative Active 28 Cooperative COOPAMA Active 29 Rwanda Development Office Active KENYA 1 Olerai Farming Ltd Active 2 Unga Limited Active 3 Export Trading Company (KE) Active 4 National Cereals and Produce Board Active 5 Pembe Flour Mills Active 6 Mombasa Maize Millers Active 7 Seaboard Overseas Trading Company Active 8 Capital Reef Kenya ltd Active Annual Report & Financial Statements,

78 EAGC MEMBERSHIP 9 PISU & Company Ltd Active 10 WFP Co Kenya Active 11 Cereal Growers Association Affilliate 12 Brazagro Associate 13 Cimbria East Africa Ltd Associate 14 Intertek Testing Services Associate 15 International Fertilizer Development Center Associate 16 Grain Bulk Handlers Ltd Associate 17 Cargill Kenya Ltd Associate 18 SGS Kenya Ltd Associate 19 Kenya Commercial Bank Ltd Associate 20 GrainPro Inc Associate 21 Smart Logistics Solutions Ltd Active 22 Agricultural Market Development Trust-AGMARK Affiliate 23 Toror Grain Handling Company Ltd Active 24 Kapsuswa Farm Active 25 LAROSCHEL DEDEBY LTD Active 26 Commercial Bank of Africa Associate 27 East African Maltings Ltd Active 28 Mama Millers Ltd Active 29 Cereal Millers Association (CMA) Affiliate 30 ACDI/VOCA KENYA Associate 31 Post Harvest Services Ltd Active 32 Vestergaard Frandsen EA Ltd Associate 33 Syngenta EA Ltd Associate 34 Minua Commercial Agencies Active 35 Chase Bank (Kenya) Ltd Associate 36 Polucon Services Kenya Ltd Associate 37 Lomson Enterprises Ltd Active 38 NAFICS Ltd Active 76 Annual Report & Financial Statements, 2016

79 EAGC MEMBERSHIP 39 Tradiverse Kenya Limited Active 40 Gro-Ventures Ltd Associate 41 Bunge East Africa Ltd Active 42 John Deere Financial Associate 43 Alcordia Ltd Associate 44 Greenlife Crop Protection Africa Ltd Associate 45 Kabarak University Enterprises Ltd Active 46 Jamii Milling Ltd Active 47 Transnational Bank Ltd Associate 48 F & S Scientific Ltd Associate 49 Capwell Industries Ltd Active 50 Millets Company Kenya Ltd Active 51 Umati Capital Ltd Associate 52 Soy Afric Ltd Active 53 Cooperative Eucord A.U (East Africa) Active 54 Unaitas Sacco Society Ltd Associate 55 Malta Insurance Agency Ltd Associate 56 Mateeny Soy Farmers Co-operative Society Ltd Active 57 Grain Industries Ltd Active 58 Commercial Grain Services Ltd Active 59 Bradegate Holdings Ltd Active 60 Bunda Cake and Feeds Ltd Active 61 Healthy Foods Ltd Active 62 Synergy Earth Global (K) Limited Active 63 Kams Singapore Pte Ltd Active 64 Sorela Supplies Associate 65 Zero Two Heroes Limited Active 66 Technoserve Kenya Associate 67 Bewa Farmcare Ltd Active 68 Almis Enterprise Ltd Active Annual Report & Financial Statements,

80 EAGC MEMBERSHIP 69 Rafiki Microfinance bank Associate 70 Shalem Investments Ltd Active 71 Bell Industries Associate 72 Elazar Agri Limited Active 73 Winnie's Pure Health Products Ltd Active 75 CfC Stanbic Bank Associate 76 Holiday Grain Processors Ltd Associate 77 Bulto Grains Ltd Active 78 Mepico Limited Active 79 Kamili Packers Active 80 Rural Women In Agriculture Ltd Active 81 Ngarua Cereals and Produce Cooperative Society Associate 82 Kilimambogo Millers Ltd Active 83 Ennovative Capital Limited Active 84 Transu Ltd Active 85 Primax Agencies Ltd Active 86 Gold Park Investments Limited Active 87 Thai Group Kenya Limited Active 88 Nzoia Grain Marketing & Processing Co-op Society Ltd Active 89 Destiny Sourcing & Supplies Active 90 Hottiserve East Africa Ltd Active 91 Sunbelt Farm Ltd Active 92 KB Commosales Private Limited Active 93 Kings Commodities Limited Active 94 Afrinol Holdings Ltd Active 95 Tempest Associate 96 Echkay Trading Co. Limited Active 97 Quipbank Limited Active 98 Kilima Tumaini Youth Group Active 99 Luyekhe Kazi Na Maendeleo Active 78 Annual Report & Financial Statements, 2016

81 EAGC MEMBERSHIP 100 Kuona Mbele Investement Farmers Cooperative Active 101 Philse Millers Active 102 Root Capital Associate 103 Post Harvest Solutions Associate 104 Classic Foods Associate BURUNDI 1 Burundi Society of Agriculture and AgriFood Transformation (SATAAB) Active 2 SAVE POWE BIOTECHNOLOGY (01- BIOTEC) Active 3 AGRI-PROFOCUS Burundi Affiliate 4 Cerealis Active 5 Women Soya Milling Company (WSMC) Active 6 Africa Active Milling Company Ltd Active 7 Cooperative de Production Agro pastorale (COPAP) Active 8 East Africa General Trade (EAGT) Active 9 COBEREC Active 10 Societe De Transformation Des Produits Alimentaires Active MALAWI 1 Zekoko Active 2 Sojavi Farms Active 3 Tradeline Corporation Limited Affiliate 4 NASCOMEX Active 5 Teren Investments Active 6 Global Trade Ltd Active 7 Johnson Food Industry Active 8 Agroinput Suppliers Ltd (AISL) Active 9 KAGO General Dealers and Suppliers Active Annual Report & Financial Statements,

82 EAGC MEMBERSHIP 10 Agricultural Commodity Exchange for Africa Active 11 Khama Estate Active OTHER MEMBERS 1 Partnership to Cut Hunger in Africa Associate 2 ESAANET Affiliate 3 Ministry of Agriculture, Forestry, Cooperatives & Rural Development of the Republic of South Sudan (MAFCRD) Active 4 OTECH SAS Associate 5 In-service Training Trust Affiliate 6 KB Commosales Private Limited Active 80 Annual Report & Financial Statements, 2016

83 PICTORIALS OF 2016 ACTIVITIES Annual Report & Financial Statements,

84 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME JANUARY 19th January 2017 FTESA Partners Meeting G-Soko Discussion on partnership with Food Trade East and Southern Africa (FTESA) on G-Soko project Dar es Salaam, Tanzania Progress towards system development of G-Soko 26th January EAGC-EAC Standards Meeting Discuss recommendations of Entebbe II on Standards Arusha, Tanzania Fast- tracking standards review meetings. 26th 28th January Issuance of PHH equipment to aggregation centres Handing over of Post-Harvest Handling Equipment to farmers Machakos/ Makueni, Kenya Improved quality, reduce postharvest losses and increase grain trade in structured trading systems 26th 28th January RATIN use Demonstration to farmers, warehouse operators Sensitize farmers on the importance of Market Information Machakos/ Makueni, Kenya Increased utilization of RATIN information. 26th January Launch of A Stitch In Time project with Shalem Investment Ltd Launch of Farmers- Centred Project supported by FTESA- EAGC partner Meru, Kenya Initiated partnership with Shalem Investment Ltd on trade linkages and farmer mobilization. FEBRAURY 3rd, February 2017 Review of MoU with VECO East Africa To review the memorandum of understanding towards a partnership with VECO East Africa Dar es Salaam Tanzania EAGC signed off MoU with VECO East Africa 9th 11th February RATIN & SMS Systems installation and market visits Install RATIN and SMS systems in Rwanda Kigali, Rwanda Increased utilization of RATIN information. 10th 12th February Grain Stakeholders workshop To identify major constraints affecting the grain sector performance in South Sudan Juba, South Sudan Partners GIZ FSDAM, USAID FARM, and WFP P4P agreed to work together to address grain sector issues. 15th-16th February High-level ASARECA Strategy Development Meeting Develop strategic direction for ASARECA Entebbe, Uganda Enhanced partnership wuth ASARECA 82 Annual Report & Financial Statements, 2016

85 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME 22nd 25th February 23rd -25th February 24th -27th February 25th Febraury 25th February 29th Feb 2nd March 1st 11th March 10th March 2017 G-soko route to market strategy development workshop 2nd Annual Agricultural Policy Conference (AAPC) 2016 Stakeholders Meeting and Recruitment of Country Program Manager EAGI Validation curriculum Meeting Distribution of PHH Equipment to FBO in Rwanda Agribusiness Financing Training MARCH Business Plan development workshop EAGC, Virtual City and Food Trade-ESA Meeting Development of EAGC G-Soko Communication and Marketing Route to market Deliberations on the Policies in Agriculture. Recruit country office team and hold stakeholders meetings Host a workshop to validate EAGI training Curriculum Distribute Post Harvest Handling Equipment to selected farmer groups Train bankers and agricultural financiers To conduct workshop on development of warehouse specific business plans in South Sudan To evaluate progress of G-Soko development 7th 11th March Partner Field Visits. To identify major constraints affecting the grain sector performance in South Sudan Machakos, Kenya Dar es Salaam, Tanzania Lilongwe, Malawi Nairobi, Kenya Kigali, Rwanda G-Soko Route to Market marketing strategy developed Enhanced institutional partnership on policy issues especially on Soya Value Chains Successfully conducted interviews for the EAGC Country Office. EAGI Training Curriculum completed Farmer groups received PHH equipments Nakuru, Kenya Trained over 30 financial officers on Agribusiness Financing Juba, South Sudan Business plans developed for warehouses Nairobi, Kenya Initiated 100 days boots on the ground completion process of the G-Soko development. Juba South Sudan Partners GIZ FSDAM, USAID FARM, and WFP P4P agreed to work together to address grain sector issues. Annual Report & Financial Statements,

86 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME 15th March 1st -4th April 1st -8th April 11th April 12th-14th April 19th -21st EAGC Meets with State Minister of Agriculture in Rwanda. EAC Regional Standards Meeting APRIL Web 2.0 and Social Media for Development Training MoU signing with Rwanda Standards Boards (RSB) 12th CAADP Partnership Platform Meeting Regional EAC on Sampling and Grading Procedures for Cereals and Pulses To discuss partnership with the Ministry of Agriculture To discuss Harmonization of National Positions on the Review of East African Staple Foods Standards Facilitate training in partnership with AFRACA and Central Bank of Nigeria To discuss and sign a partnership with Rwanda Standard Board Participate in the 12th CAADP meeting To discuss Sampling and Grading Procedures for Cereals and Pulses under the EAC Harmonised Staple Foods Standards. Kigali, Rwanda Mombasa, Kenya Abuja, Nigeria Kigali, Rwanda Accra, Ghana Mombasa, Kenya Enhanced partnership on grain sector issues Harmonized national positions on East Africa Staple Foods Standards. 19 participants trained on Web 2.0 training in Nigeria MOU signed with Rwanda Standard Board (RSB) to enforce grain standards Recommendations on advancing financial and policy advocacy developed. Sampling and Grading procedures developed. 22nd April Annual General Meeting Host Annual Members Meeting Nairobi, Kenya Successful AGM 26th April 3rd May 20th May 27th May Launch of Pulses and Textiles Value Chain Road Maps MAY Warehouse Receipt Systems Training EAGC, FTESA and RUDI meeting on Integration of RUDI into EAGC GSoko GSoko validation Workshop and Country Program Committees Induction To participate in the launch of the road maps for the pulses value chain for Kenya To train Malawi Senior Government Officials on Warehouse Receipt Systems To Integrate RUDI into EAGC GSoko To induct new country program committees and validate G-Soko platform Nairobi, Kenya Lilongwe, Malawi Dar es Salaam, Tanzania Arusha, Tanzania Road map for Pulses Value Chain for Kenya agreed on. 14 Malawi Senior Government Officials trained RUDI warehouses integrated into the EAGC- GSoko platform GSoko platform validated by the board and CPC members 84 Annual Report & Financial Statements, 2016

87 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME 31st May 1st EAC Round Table Deepening relationship between the State Department for EAC Integration and Private sector on trade 3rd June 7th June JUNE EAGC officially launches in Malawi and hosts first Grain Stakeholders meeting Validation workshop on EAC Aflatoxin prevention and control strategy Nairobi, Kenya Agreed on partnership with the private sector for implementation of EAC harmonised staple foods standards. Launch EAGC in Malawi Lilongwe, Malawi EAGC country office opened in Malawi and 1st stakeholders meeting hosted Participate in the National Validation workshop Bujumbura Burundi Aflatoxin control strategy adopted. 13th -16th June 7th Africa Agriculture Science Week & FARA General Assembly Address underperformance of African Agriculture 24th -25th June Annual Agribusiness Expos Host Agribusiness Expos in Uganda and Tanzania 27th 30th June 1st July 20th July EABC Delegation to Netherlands JULY Integrated Food Security Phase Classification Working Group (IFSPCWG) Launch of the 1st Edition GSoko Grain Trade Business Directory Participate in the lobby trip to Brussels on Export Partnership Agreement partnerships Contribute to the integrated food security working group in Uganda To release the inaugural Gsoko Business Directory Kigali, Rwanda Arusha, Tanzania and Masindi, Uganda Brussels, Netherlands Kampala, Uganda Nairobi, Kenya Recommendations developed Hosted successful ABFs in Uganda and Tanzania Lobbied for the signing of agreement between EAC and EU during the upcoming UNCTAD conference. EAGC incorporated to the Integrated Food Security Phase Classification Technical Working Group The 1st edition of the G-Soko Business Trade Directory launched. Annual Report & Financial Statements,

88 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME 22nd July Grain sector meeting To discuss intra-regional grain trade Nairobi, Kenya EAGC Board of Directors called on EAC governments to promote intraregional grain trade 25th July EAGC and Soy Afric signs a partnership MOU with SGS AUGUST To sign partnership with SGS on establishment of grading standards lab Nairobi, Kenya Signed MoU to establish a grading laboratory for grain handlers August 12th -13th EAGC Agribusiness Expo Host Annual Agribusiness Expo Nakuru, Kenya Held a successful ABF 17th - 24th August 22nd - 23rd EAGC leads its members in a Two-day B2B meetings on pulses in Indore, India Food Loss Reduction Project Inception - Accra Ghana. Davine To facilitate pulses trade linkage under SITA program in India. To participate in the inception workshop on post-harvest food losses in Africa 26th Aug Grain sector workshop To host grain Stakeholders meet in Dar es Salaam to discuss grain export ban in Tanzania 29th August 29th -30th August 2nd - 3rd Sept Regional Meeting of Rice Value Chain Stakeholders Host G-Soko sensitization workshop SEPTEMBER CAADP Technical working groups meeting in Nairobi To discuss unscrupulous trading practices in Tanzania To sensitize members on the G-Soko Platform To develop technical networks for the implementation of CAADP, Malabo commitments Indore, India Accra, Ghana Dar es Salaam, Tanzania Dar es Salaam, Tanzania Kampala, Uganda Nairobi, Kenya B2B Trade Linkage in India Kenya Country plan developed and EAGC nominated to lead private sector Grain sector policy paper developed and shared with the Ministry of Agriculture. Recommendations put forth for development of trade on rice strategy Grain traders endorse GSoko during Sensitization meeting in Kampala, Uganda CAADP technical network launched 86 Annual Report & Financial Statements, 2016

89 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME 6th Sept AGRF - Digital Harvest To participate in the African Green Alliance Forum th -21st September 10th October 12th October EAGI Trainers of Trainers Training OCTOBER Tegemeo breakfast meeting on the competition of key staple foods National Consultations for harmonisition of Rules of Origin in TFTA Host ToT for the trainers to implement EAGI curriculum. To participate in the launch of the study on staple foods price completion. To make recommendations on the national position for the Rules of Origin. Nairobi, Kenya Nairobi, Kenya Nairobi, Kenya Bujumbura, Burundi EAGC presented its role on market information in the grain sector for improved grain trade. Trainers of Trainers equipped with skills to broaden EAGI Training Capacity A study on staple foods prices competition released Burundi National position developed 13th-14th October 2nd Agricultural Smart Climate Alliance Forum Participate in the Agricultural Smart Climate Alliance Forum Nairobi, Kenya Recommendations on supporting Agricultural Smart Climate developed. NOVEMBER 4th November th-9th November 16th November 17th 20th November Regional Network of Agricultural Policy Research Institute (RENAPRI) workshop Training to delegates from Somali Pitch the AgriHack Conference Tripartite Free Trade Area Scoping Study Promote partnership with Agricultural research platforms. To train delegates from Somali under partnership with FAO Participate in the AgriHack Conference to benchmark on the EAGC AgriHack Nairobi, Kenya Nakuru, Kenya Nairobi, Kenya Recommendations on Africa s Agricultural Transformation Pathways in the Context of Climate Change EAGC facilitated training for Somalia grain traders Lessons on hosting EAGC Agrichack in partnership with CTA Undertake scoping study on TFTA Lilongwe, Malawi Established policy issues on TFTA in Malawi Annual Report & Financial Statements,

90 SELECTED EAGC EVENTS AND ACTIVITIES IN 2016 DATES ACTIVITY PURPOSE OF MEETING LOCATION OUTCOME 23rd -25th November Structured Commodity Trade Finance Training Host Structured Commodity Trade Financing training November Malawi Agribusiness Expo Host 1st Annual Agribusiness Expo in Malawi DECEMBER Mombasa, Kenya Lilongwe, Malawi Successful training facilitated. Successful Inaugural ABF held in Malawi, with all exhibitions and 330 participants 6th Dec Board Meetings Closing Year Board Meeting Nairobi, Kenya Successful Meeting held 7th Dec 10 Celebrations Host celebrations for the Nairobi, Kenya Held successful launch of celebrations which will culminate on 7th October th Dec FAOC/ATPAF-ESA TFTA Workshop Host Regional Consultative meeting to release TFTA Study Nairobi, Kenya TFTA study released 88 Annual Report & Financial Statements, 2016