Dubai builds trade links with Africa

The DTTC, an initiative of the Dubai Multi Commodities Centre (DMCC), announced that the Kenyan Tea Development Agency (KTDA) and OCIR, the official Rwandan Tea Authority had recently joined as active members of the centre.

Kenya is the third largest producer of tea in the world today and controls about 23 percent of global tea exports. The tea sector contributes four percent of Kenya's GDP and generates in excess of Sh45 billion (US$ 609.75 million) in foreign exchange annually. In 2005, the KTDA was responsible for 60 per cent of Kenya's total tea production of 329 million kilos, representing over six per cent of total global tea production.

In Rwanda, annual tea production reached 16.8 million kilos in 2005, with a majority of this tea being produced by OCIR, the Rwanda Tea Authority. Tea is Rwanda's largest export earner.

"One of the strategic objectives of the DTTC is to strengthen Dubai's role as focal point for the international tea trade by enabling the availability of a variety of multi-origin teas through the centre," said Ahmed bin Sulayem, Chief Operating Officer of DMCC. "Kenya and Rwanda are significant examples of this, and we expect to see strong interest in African tea from blenders and buyers," he added.

Kenyan and Rwandan teas are now being regularly shipped to the centre, which is facilitating sales in these teas through sampling and building awareness. Until the tie up with DTTC as a sales source, the bulk of the teas produced in Kenya and Rwanda have been sold through the Mombassa auctions.

"Currently, more than 70 per cent of Kenyan tea is shipped to Egypt, Pakistan, UK, Afghanistan and Sudan. We are seeking to penetrate key world tea markets and widen our reach in order to reduce our dependence on a few markets," said Mr. Samuel Karima, General Manager - Sales and Marketing of the KTDA. "We have been impressed with Dubai's rapid emergence as a significant player in the global tea industry. As one of the world's major producers of quality tea, we are delighted to partner with the DTTC and we look forward to a long and fruitful partnership. The KTDA will be utilizing the Dubai Tea Trading Center to complement its current support for the Mombasa auction," he added.

Mr. Alex Kanyankole, Director General of OCIR, said: "In the short time since its inception, the DTTC has established itself as an important point on the world tea trade routes. We are extremely glad to have joined the DTTC as a seller member earlier this year and we look forward to working closely with the centre to promote greater volumes of trade in Rwandan teas through the region. Rwandan teas are now being regularly shipped to the centre, which is facilitating sales in this new origin tea through sampling and building awareness," he added.

Sanjay Sethi, Head of DTTC said: "African tea is popular among consumers in the Middle East and increasing demand has ensured the tremendous growth potential in the region. Kenyan tea is world-renowned for its quality and taste, while teas from Rwanda are well known for their brightness and rounded cup quality."