By Benadetta Chiwanda Mia:
The Tanzanian government has hit back at Malawi, announcing an impending import ban on all Malawian agricultural products and fertiliser exports to Malawi if the country does not reverse its decision by Wednesday next week.
This comes a month after an import ban was announced by Minister of Trade and Industry Vitumbiko Mumba.
The ban applies to rice, fruits, maize flour, fresh milk, vegetables and other products, except those that are not cultivated or produced in Malawi.
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However, in an address to Tanzanian traders on his official X (Twitter) page Thursday, April 17, Tanzania Minister of Agriculture Hussein Bashe said the move by Malawi had directly affected activities of traders who export such products to Malawi.
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“The government has received official notification that the Government of Malawi has banned the entry of agricultural products from Tanzania, including flour, rice, ginger, bananas and maize,” the statement reads.
Bashe claimed that all diplomatic efforts to reach an understanding with his Malawian counterpart had been unsuccessful.
“I confirm that as the minister responsible, I have contacted the Minister of Agriculture of Malawi [Sam Kawale] in various ways without success in getting an official response,” he said in the post
He has, therefore, declared that “If the governments of Malawi and South Africa do not change their positions by next Wednesday, the Government of the United Republic of Tanzania, through the Ministry of Agriculture, will ban the import of all agricultural products from the two countries.
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“Additionally, cargoes of agricultural products from Malawi will not be allowed to pass through Tanzanian borders, towards the port of Dar es Salaam or any other country, until the ban is lifted,” the minister says.
The country has also announced the suspension on fertiliser exports to Malawi as part of measures meant to protect the interests of Tanzanian farmers and traders.
All Tanzanian exporters of agricultural products have since been advised to stop loading such products until Malawi.
On his part, Kawale said: “It is a trade issue, engage [the] Trade Minister.”
On his part, Industry and Trade Minister Vitumbiko Mumba said they were doing something on the issue.
“We, as Ministry of Trade and Industry, have only received formal communication from Zambia, Comesa and ambassadors from [the]
Africa] wrote us seeking clarity and expressing their concerns and we have agreed to meet in the soonest time possible. We have responded in writing, not via social media.”
Commenting on the looming threat of a trade standoff between Malawi and Tanzania, economist Marvin Banda defended Malawi’s initial decision, stating that the government was “well within its right” to institute the two-year import ban aimed at protecting the domestic market from external shocks.
However, he acknowledged the broader implications of the move within the context of the African Continental Free Trade Area (AfCFTA).
“From the onset, there was a risk of ambiguity in the interpretation of the action. Malawi exists within AfCFTA, which encourages the reduction of barriers to free trade. The risk was always that our neighbours and other trading partners might misconstrue the measure as protectionist, undermining the spirit of continental market liberalism,” Banda said.
While there has not yet been an official retaliatory move by Tanzania, Banda cautioned that any escalation could have far-reaching economic consequences for Malawi.
He, therefore, emphasised the importance of utilising the window of negotiations that has been opened for a mutually beneficial resolution.
“The biggest fear was always the risk of imported inflation. Given the recurring deficits in almost every crop category, Malawi is vulnerable. Once stocks are depleted, prices could spike, worsening food insecurity and inflation [situations],” he said.
Ban further stressed that any disruption to trade with Tanzania could compromise Malawi’s access to critical export and import routes, particularly during the lean season, and negatively affect the country’s ability to generate foreign exchange.
Another economic expert Alick Nyasulu advised the government to adopt a diplomatic approach to avoid causing damage to the country.
“No one wins in trade wars. The best [thing] is to resolve the issues through our diplomatic channels and find a solution that best works for both of our countries,” Nyasulu said.
